Registration Document 2005 - Total.com

2
Europe
Business overview
Upstream - Exploration & Production
TOTAL’s production in Europe averaged 770 kboe/d in 2005,
representing 31% of the Group’s production. In Norway, over
the period from 2003 to 2005, the Group brought the Skirne,
Kvitebjorn and Kristin fields on stream and participated in
new developments in existing fields : Ekofisk Area Growth,
structure J and West Flank of Oseberg, and the North and
South Flank of Valhall. In the United Kingdom, over the same
period, satellites from Alwyn (Forvie North, Nuggets N4)
and from Armada started production. Both in the UK and
in Norway, several discoveries have been made and new
exploration licenses have been awarded.
France
The Group has operated fields in France since 1939, with its most
significant activity being the development and operation of the Lacq
gas field, which began in 1957.
TOTAL’s principal natural gas fields are located in southwest
France, primarily at Lacq-Meillon (100%), as well as several smaller
natural gas and oil fields in the same region and in the Paris basin.
Their average production was 29 kboe/d in 2005, compared to
35 kboe/d in 2004 and 38 kboe/d in 2003.
The “Lacq 2005” project, which is focused on reinforcing industrial
safety standards and optimizing the procedures for gas processing
at the Lacq-Meillon field, was successfully completed in 2005.
A pilot unit to capture carbon-dioxide through oxy-combustion is
planned, with operations scheduled to begin in 2008. In a second
phase, this project is planned to provide for the reinjection of this
gas in a reservoir in southwest France.
Italy
The Tempa Rossa field (50%, operator) in the southern section of
the Basilicate region is the principal upstream asset in Italy.
After an agreement in principle was signed with the Basilicate
region in November 2004, 2005 was devoted to negotiating the
final agreement permitting the implementation of the development
of the Tempa Rossa heavy-oil field on the Gorgoglione license on
the basis of the Development Plan filed in 2003 with the regional
authorities. Production is scheduled to begin in 2009 with a
planned plateau rate of 50 kb/d.
Norway
Since the late 1960s, the Group has played a major role in the
development of a large number of fields in the Norwegian North
Sea. Norway is the largest contributor to the Group’s production
with an average in 2005 of 383 kboe/d compared with 406 kboe/d
in 2004 and 405 kboe/d in 2003.
30 TOTAL - Registration Document 2005
TOTAL participated in all recent licensing rounds. The Group was
awarded several exploration licenses, including in June 2004 as
the operator with a 40% interest in the prolific Haltenbanken region
(Blocks 6406/7 and 8).
TOTAL was also awarded the four blocks it requested during the
“APA2005’’ licensing round at the end of 2005, including a block,
that the Group will operate with a 100% interest, south of the Onyx
area. The Onyx SW well discovered hydrocarbons in 2005.
Several fields were developed and put in production in the past
three years.
At the end of 2005, TOTAL signed an agreement to acquire a
30% interest in the PL211 license in exchange for its 5% interest in
the Tyrihans field. This license contains the currently undeveloped
Victoria discovery. This acquisition became effective upon approval
by the Norwegian authorities in early 2006. It raises TOTAL’s interest
in Victoria to 50%. TOTAL has been appointed the operator of the
PL211 license.
On the Valhall field (15.7%), oil production began on the South
Flank in May 2003 and from the North Flank in January 2004. The
extension of the Vigdis field in the Tampen zone (5.6%) came on
stream in October 2003. The gas and condensate fields of Skirne
(40%, operator), Kvitebjørn (5.0%) and Sleipner Alpha North (9.4%)
came on stream in 2004. Gas production from the Visund field
(7.7%) started in October 2005.
The subsea development of the high pressure/high temperature
Kristin field (6.0%) in the Haltenbanken region and the new platform
for the Ekofisk Area Growth project both started production in the
last quarter of 2005. In the Oseberg area (10.0%), the first well on
structure J has been producing since June 2005 and the West
Flank oil field began production in February 2006.
The offshore development of the Snøhvit natural gas field (18.4%)
and construction of its liquefaction facilities are progressing. The
subsea development of the Vilje oil field (24.2%), and the innovative
Tordis IOR (5.6%) development in the Tampen area in the North
Sea are also underway. These projects are scheduled to start
production in 2007. In the Haltenbanken area, development of
the Tyrihans oil, gas and condensate field (21.5% after swap) was
approved in February 2006. Production is scheduled to start in
2009 with an initial estimated production plateau of 70 kboe/d
(in 100%) to be reached in 2011.
The production from the Frigg field (77.0%, operator), which
began in 1977, came to an end on October 26, 2004. The
field produced a total of 192 billion cubic meters of natural gas,
representing a recovery rate of 78%. A large portion of the multi-year
decommissioning and site restoration program, which was approved
by the relevant authorities in 2003, was completed during the
summer of 2005 as scheduled.