Registration Document 2005 - Total.com

Kuwait
Since 1997, the Group has provided technical assistance for the
upstream activities of the state-owned Kuwait Oil Company (KOC)
under an agreement that was renewed in 2005.
TOTAL also has a 20% interest in the consortium organized to
participate in the bidding process opened to international oil
companies for production activities on oil fields in northern Kuwait.
Oman
TOTAL’s primary operations in Oman are on Blocks 6 and 53,
and in the Oman LNG/Qalhat LNG liquefaction plant. In 2005,
the Group’s share of production averaged 36 kboe/d, down from
40 kboe/d in 2004.
On Block 34, operated by TOTAL (100%), surveys were conducted
to assess the oil potential. The block was relinquished in May 2005
after completion of a 2D seismic campaign.
On Block 6 operated by Petroleum Development Oman (PDO), in
which TOTAL holds a 4% interest, a new concession agreement
became effective on January 1, 2005 for a 40-year term.
In 2005, TOTAL acquired 2% in the production sharing contract for
the Mukhaizna field (Block 53) following the transfer of the contract
to Occidental, the operator.
The Oman LNG liquefaction plant (5.54%) produced 6.9 Mt in
2005. A third 3.6 Mt/y liquefaction train launched in 2003 within the
new company Qalhat LNG came on line at the end of 2005. Oman
LNG has a 36.8% interest in the plant (representing an indirect
stake of 2.04% for the Group).
Qatar
In Qatar, TOTAL holds interests in the Al Khalij field, the North Field,
the Dolphin project, and in the Qatargas liquefaction plant. TOTAL’s
production in Qatar (including its share in the production of equity
affiliates) averaged 57 kboe/d in 2005, at the same level as in 2004,
up from 54 kboe/d in 2003.
TOTAL holds 20% in the upstream operations of Qatargas,
which produces natural gas and condensates on a block in the
North Field. The Group also owns a 10% interest in the Qatargas
liquefaction plant. The three natural gas liquefaction (LNG) trains
produced 9.0 Mt in 2005, compared to 9.1 Mt in 2004.
A de-bottlenecking program was completed in June 2005, raising
production capacity to 9.7 Mt/y.
In December 2001, a contract was signed with state-owned Qatar
Petroleum providing for the sale of 2,000 Mcf/d of gas from the
North Field produced in the Dolphin project (24.5%) for a period of
25 years. This gas will be transported to the United Arab Emirates
through a 360-kilometer gas pipeline. The final development plan
was approved in December 2003 by the Qatari authorities and
Business overview
Exploration & Production - Upstream
TOTAL - Registration Document 2005
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the construction contracts were awarded in 2004. Construction
is underway on both the Ras Laffan Industrial City site and on the
offshore section.
On the Al Khalij field (100%), the third development phase for
the north zone was completed in September 2004, increasing
production to 45 kb/d in 2005.
In February 2005, TOTAL signed a memorandum of understanding
for TOTAL to acquire a 16.7% interest in the second train of
Qatargas II. This integrated project will develop two new LNG
trains, each with an annual capacity of 7.8 Mt, with commissioning
planned for 2008. The acquisition of this interest is subject to the
approval of the relevant authorities.
TOTAL also announced in July 2005 a project to locate a research
center in the Qatari Scientific and Technical Complex.
Syria
In 2005, the Group’s production was 25 kboe/d, coming principally
from the Jafra and Qahar fields on the Deir Ez Zor permit (100%,
operated by DEZPC which is 50% owned by TOTAL).
The Deir Ez Zor gas and condensate reprocessing plant (50%),
which came on line at the end of 2001, collects, processes and
transports approximately 175 Mcf/d of associated gas from
the permits in the Deir Ez Zor region. With the expiration of the
contract, these facilities were transferred to the state-owned
company SGC at the end of 2005.
Yemen
TOTAL is active in the two oil basins in Yemen, as the operator on
Block 10 (Masila basin, East Shabwa permit) and as a partner on
Block 5 (Marib basin, Jannah permit).
Production on the East Shabwa permit (28.6%, operator) averaged
33 kb/d (in 100%) in 2005. The potential of the “Basement” was
confirmed in 2005 with record production on the block. Production
averaged 47 kb/d (in 100%) on the Jannah permit (15%) in 2005.
Yemen LNG, the LNG project operated by TOTAL (a 39.6%
shareholder after the entry of Kogas), was officially launched
in August 2005. This project provides for the construction of
two liquefaction trains with a total capacity of 6.7 Mt/y that are
scheduled to come on line near the end of 2008.
Three long-term LNG sales agreements were signed with Suez
(2.5 Mt/y) and Total Gas & Power Ltd (2 Mt/y) for deliveries to the
United States over a 20-year period, beginning in 2009, and with
Kogas for sales of 2 Mt/y to be delivered to South Korea also for a
20-year period. Under the latter agreement, Kogas acquired a 6%
interest in the company YLNG.
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