Registration Document 2005 - Total.com

Standardized measure of discounted future
net cash flow (excluding transportation)
The standardized measure of discounted future net cash flows from
production of proved reserves was developed as follows:
1. Estimates of proved reserves and the corresponding production
profiles are based on technical and economic conditions at
year-end.
2. The estimated future cash flows from proved reserves are
determined based on prices at December 31, except in those
instances where fixed and determinable price escalations are
included in existing contracts.
3. The future cash flows incorporate estimated production costs
(including production taxes), future development costs and asset
retirement costs.
Appendix 2 - Supplemental oil and gas information (unaudited)
Financial review
(in millions of euros) Consolidated Subsidiaries
All estimates are based on year-end technical and economic
conditions.
TOTAL - Registration Document 2005
10
4. Future income taxes are computed by applying the year-end
statutory tax rate to future net cash flows after consideration of
permanent differences and future income tax credits.
5. Future net cash flows are discounted at a standard discount rate
of 10 percent.
These applicable principles are the ones required by the FAS 69,
and do not necessarily reflect the expectations of real revenues
from these reserves, nor their present value, hence, they do not
constitute criteria of investment decision. An estimate of the fair
value of reserves should also take into account, among other
things, the recovery of reserves not presently classified as proved,
anticipated futures changes in prices and costs and a discount
factor more representative of the time value of money and the risks
inherent in reserves estimates.
As of December 31, 2003 Europe Africa North America Asia
Rest of
the world Total
Future cash inflows 44,136 69,191 3,507 14,315 39,544 170,693
Future production costs (6,862) (12,423) (901) (2,143) (9,855) (32,184)
Future development costs (6,317) (9,645) (417) (2,269) (4,784) (23,432)
Future net cash flows, before income taxes 30,957 47,123 2,189 9,903 24,905 115,077
Future income taxes (20,241) (25,960) (379) (4,233) (7,037) (57,850)
Future net cash flows, after income taxes 10,716 21,163 1,810 5,670 17,868 57,227
Discount at 10% (3,389) (10,151) (691) (2,575) (11,303) (28,109)
Net cash flows 7,327 11,012 1,119 3,095 6,565 29,118
As of December 31, 2004
Future cash inflows 49,233 76,576 2,695 13,737 42,437 184,678
Future production costs (7,389) (13,170) (792) (2,077) (10,561) (33,989)
Future development costs (6,448) (10,001) (356) (2,316) (4,436) (23,557)
Future net cash flows, before income taxes 35,396 53,405 1,547 9,344 27,440 127,132
Future income taxes (23,711) (33,859) (304) (4,091) (8,613) (70,578)
Future net cash flows, after income taxes 11,685 19,546 1,243 5,253 18,827 56,554
Discount at 10% (4,085) (8,919) (455) (2,167) (12,091) (27,717)
Net cash flows 7,600 10,627 788 3,086 6,736 28,837
As of December 31, 2005
Future cash inflows 80,179 119,119 6,646 18,046 71,417 295,407
Future production costs (8,842) (19,402) (3,213) (2,381) (17,709) (51,547)
Future development costs (6,581) (13,087) (789) (2,761) (5,019) (28,237)
Future net cash flows, before income taxes 64,756 86,630 2,644 12,904 48,689 215,623
Future income taxes (43,824) (54,598) (528) (5,802) (15,285) (120,037)
Future net cash flows, after income taxes 20,932 32,032 2,116 7,102 33,404 95,586
Discount at 10% (7,592) (13 856) (868) (2,744) (21,132) (46,192)
Net cash flows 13,340 18,176 1,248 4,358 12,272 49,394
Minority interests in future net cash flows
Year ended December 31, 2003 351 304 – – – 655
Year ended December 31, 2004 297 287 – – – 584
Year ended December 31, 2005 515 546 - - - 1,061
Company’s share of equity affiliates’ future net cash flows as of
Year ended December 31, 2003 – 666 – – 1,139 1,805
Year ended December 31, 2004 – 494 – – 1,101 1,595
Year ended December 31, 2005 - 598 - - 2,930 3,528
239