Registration Document 2005 - Total.com

2
Business overview
Investments
Investments
Main investments for the past three fiscal years
(in millions of euros) 2005
IFRS
56 TOTAL - Registration Document 2005
2004
IFRS
2004
French GAAP
2003
French GAAP
Upstream 8,111 6,202 6,170 5,302
Downstream 1,779 1,675 1,516 1,235
Chemicals 1,115 949 905 1,115
Corporate 190 78 77 76
Total 11,195 8,904 8,668 7,728
The largest part of TOTAL’s capital expenditures are made up of
additions to intangible assets and property, plant and equipment.
In the Upstream segment, capital expenditures are principally
development costs for the construction of new hydrocarbon
production facilities, exploration expenditures and acquisitions of
new permits. In 2005, development expenditures mainly included
the following projects : Kashagan in Kazakhstan, Ekofisk and
Snohvit in Norway, Dalia, Rosa and BBLT in Angola, Tunu/Tambora
in Indonesia, Dolphin in Qatar, Forvie in the UK, and Akpo and
Bonga in Nigeria. In 2005, 1.4 B$ were dedicated to the acquisition
of Deer Creek Energy Ltd in Canada.
In the Downstream segment, capital expenditures are split between
refining and marketing activities (mainly retail network). Refining
investments (about 1 B€ in 2005 vs. 0.7 B€ in 2004) are dedicated
both to maintenance activities of the plants (including turnarounds
for about 0.3 B€ in 2005) and to projects designed to increase
light products production, to add desulphurization capacities, to
adapt the system to new specifications and to improve plants’
energy efficiency. In particular, the ongoing construction of the DHC
(Distillate Hydrocraker) unit at the Normandy refinery accounted for
about 0.2 B€ in 2005.
In the Chemicals segment, 2005 capital expenditures were split
between Base Chemicals for about 40%, Specialties for about
30% and Arkema for about 30%.
Main investments in progress
For 2006, TOTAL has announced an investment budget of 13.5 B$
(excluding acquisitions), 75% dedicated to the Upstream.
Upstream capital expenditures should reach 10 B$ in 2006.
They should be mainly dedicated to large development projects
including : Kashagan in Kazakhstan, Yemen LNG, Ekofisk and
Snohvit in Norway, Dalia and Rosa in Angola, Akpo in Nigeria,
Tunu/Tambora in Indonesia, Dolphin in Qatar, Tahiti in the US and
Moho-Bilondo in Congo. Moreover, 1 B$ should be dedicated to
exploration.
In the Downstream segment, capital expenditures should allow for
the development of projects designed to increase diesel production
capacities and to process more high-sulphur crudes.
TOTAL self-finances most of its capital expenditures from cash flow
from operating activities (see note 26 to the consolidated financial
statements on page 209) to which may be added borrowings
depending on market conditions (see note 20 to the consolidated
financial statements on page 200). However, capital expenditures
for which joint-companies are established between TOTAL and
external partners may lead to specific project financing.
Main contemplated investments
For the 2007-2010 period, TOTAL expects its annual capital
expenditures budget to be comparable with 2006, on average, as
far as the global amount and the breakdown between segments
are concerned.