Registration Document 2005 - Total.com

2
Business overview
Upstream - Exploration & Production
As part of the joint venture between NNPC and TOTAL, engineering
studies were launched for an additional development of the
production and processing facilities of OML 58 to increase the
production of gas intended for the new liquefaction trains of the
LNG plant on Bonny island (NLNG). On the OML 102 permit, a new
development phase (Ofon II) was approved and basic engineering
was completed in December 2005. The start-up of this new phase,
which is expected to produce an additional 70 kboe/d (in 100%),
is planned for the end of 2009. TOTAL also continued to develop
the Amenam Phase II project to commercialize a portion of the
associated gas from the Amenam field to supply NLNG.
For the fields where TOTAL is not the operator, several projects
are in the engineering studies phase, including Bonga North and
Southwest, Afam (gas and condensates to supply domestic
projects), and Gbaran Ubie (gas and condensates to supply future
Nigeria LNG trains).
TOTAL is also actively pursuing the development of its deep
offshore discoveries. In 2000, the Group discovered the Akpo field
on Block OPL 246 (24%, operator), followed by the Egina and
Preowei structures which are being appraised. When approval for
the development of the Akpo field was granted by the authorities
in April 2005, 50% of this block was converted into OML 130
(guaranteeing long-term production rights). The main Akpo
engineering and construction contracts were signed in 2005
and production is scheduled to begin near the end of 2008. The
production plateau should be 225 kb/d (100%).
24 TOTAL - Registration Document 2005
In 2005, TOTAL continued to expand its mining rights by signing
several production sharing contracts as operator: OPL 221, OPL
223 (adjacent to Block 222 on which TOTAL made the Usan
discovery) and OPL 215. TOTAL also acquired a 40% interest in
OPLs 112 and 117 in August 2005.
TOTAL holds 15% of the liquefaction plant operated by Nigeria
LNG Company (NLNG). Train 4 came on line in November
2005 and Train 5 began operations in February 2006. In 2004,
the shareholders of NLNG decided to invest in Train 6, with
commissioning planned for 2007. Studies for a Train 7, with a
capacity of 8.5 Mt were initiated in July 2005.
In 2005, and early in 2006, operations on some onshore facilities
operated by Shell (SPDC, a joint venture in which TOTAL holds
10%), were disturbed, which lead to production shutdowns in the
region of the Niger delta.
Sudan
At the end of 2004, TOTAL (32.5%, operator) updated its
production sharing agreement for Block B (118,000 square
kilometers in southeast Sudan). As peace gradually returns to the
region, it may be possible, as early as 2006, to resume operations
that have been suspended for 20 years.
In view of White Nile Company’s allegations that it has rights over
the area where TOTAL and its co-venturers already have exclusive
rights, TOTAL has commenced legal proceedings in London in
order to protect its position.