Registration Document 2005 - Total.com

2
Business overview
Downstream - Trading & Shipping
Trading & Shipping
The Trading & Shipping sector:
• sells and markets the Group’s crude oil production;
• provides a supply of crude oil for the Group’s refineries;
•
imports and exports the appropriate petroleum products
for the Group’s refineries to be able to adjust their production
to the needs of local markets;
• charters appropriate ships for these activities; and
• undertakes trading on various derivatives markets.
46 TOTAL - Registration Document 2005
Although Trading & Shipping’s main focus is serving the Group, its
know-how and expertise also allow Trading & Shipping to extend
the scope of its activities beyond meeting the strict needs of the
Group.
Trading
TOTAL is one of the world’s major traders of crude oil and refined
products on the basis of volumes traded.
The table below sets forth selected information with respect to TOTAL’s worldwide sales and source of supply of crude oil for each of the last
three years.
Sales & supply of crude oil
For the Year Ended December 31, (kb/d, except %) 2005 2004 2003
Sales of crude oil
Total Sales 4,465 4,720 4,713
Sales to Downstream segment (1) 2,111 2,281 2,165
Sales to external customers 2,354 2,439 2,548
Sales to external customers as a percentage of total sales 53% 52% 54%
Supply of crude oil
Total supply 4,465 4,720 4,713
Produced by the Group (2) (3) 1,615 1,686 1,608
Purchased from external suppliers 2,850 3,034 3,105
Production by the Group as a percentage of total supply 36% 36% 34%
(1) Excludes share of Cepsa, in which TOTAL has a 45.3% interest.
(2) Includes condensates and natural gas liquids.
(3) Includes TOTAL’s proportionate share of the production of equity affiliates.
The Trading division operates extensively on physical and
derivatives markets, both organized and over the counter. In
connection with its trading activities, TOTAL, like most other
oil companies, uses derivative energy instruments to adjust its
exposure to fluctuations in the price of crude oil and refined
products.
The Trading division undertakes certain physical transactions on a
spot basis, but also enters into term and exchange arrangements
and uses derivative instruments such as futures, forwards, swaps
and options.