Registration Document 2005 - Total.com

On the Yucal Placer field, the initial production phase of 120 Mcf/d,
which began in 2004, is producing results in line with projections.
On the Jusepin field, TOTAL designed a new development plan that
should increase production. This plan has been submitted to the
authorities.
Talks with the authorities have been underway since 2004
to expand the base of the Group’s oil projects. This expansion
is particularly targeted at the extra-heavy oil in the Orinoco basin.
In 2005, the Group was informed by the Venezuelan government
of a change in the method for calculating royalties. The Group also
received a notice of additional tax assessment on the corporate
income tax for the years 2001-2004.
The Group believes that it has complied with the applicable fiscal
and legal provisions. The Group has paid a higher amount of
royalties with reservations. The tax assessment is currently being
reviewed.
In addition, at the request of the Venezuelan government,
discussions are underway for revising the Jusepin contract.
The Venezuelan government has made similar requests to all
companies operating under this type of contract.
Asia/Far East
Business overview
Exploration & Production - Upstream
TOTAL - Registration Document 2005
2
TOTAL’s production in Asia and the Far East, principally from
Indonesia, averaged 248 kboe/d in 2005, 245 kboe/d in 2004
and 232 kboe/d in 2003, an increase of 7% over the period.
Asia and the Far East represented 10% of the Group’s overall
production for 2005. Over the period from 2003 to 2005,
the Group acquired interests in several exploration permits
in Australia, Bangladesh (subject to government approval),
and Indonesia.
Australia
After negotiations in 2004, TOTAL signed two agreements early
in 2005 to participate in the exploration of two blocks offshore
northwestern Australia. Exploration on each of these blocks is
planned for 2006.
Pursuant to a call for tenders in October 2005, TOTAL was
awarded a 30% interest in two new offshore exploration permits
north west of Australia in February 2006.
Bangladesh
At the end of 2005, TOTAL signed an agreement to acquire
interests in two exploration blocks offshore Bangladesh. The
process of obtaining governmental approval of this agreement
is underway. Exploration work is planned in 2006.
Brunei
TOTAL is the operator of the Maharaja Lela Jamalulalam field,
located on Block B offshore Brunei Darussalam (37.5%, operator).
The Group’s share of production averaged 13 kboe/d in 2005
compared to 14 kboe/d in 2004 and 2003. TOTAL continued its
exploration work on this block with a 3D seismic study performed
at the end of 2004 and interpreted in 2005.
TOTAL is also the operator (60%) of deep-offshore exploration
Block J, for which a production sharing agreement was signed in
March 2003. Exploration operations on the 5,000 km 2 block remain
suspended due to border dispute with Malaysia.
China
In early 2006, TOTAL and PetroChina signed a Production Sharing
Contract for the evaluation, development and production of the
natural gas resources of the South Sulige block of Ordos Basin, an
area of around 2,390 km2 located in the Province of Inner Mongolia.
The contract is subject to approval by Chinese authorities.
Indonesia
TOTAL, present in Indonesia since 1968, operates two offshore
blocks in the East Kalimantan area: the Mahakam permit
(50%, operator) and the Tengah permit (22.5%). Indonesia
represents 7% of the Group’s total production, with average
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