Registration document 2007 - Total.com

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Asia/Far East – Pacific
In 2006, TOTAL’s production in Asia/Far East, principally
from Indonesia, amounted to 253 kboe/d, compared to 248
kboe/d in 2005 and 245 kboe/d in 2004, an increase of 2%
over the period. Asia/Far East represented 11% of the
Group’s overall production for the year 2006. Highlights for
the 2004 to 2006 period included the acquisition of interests
in several exploration permits in Australia, Bangladesh and
Indonesia, the acquisition of a 24% interest in the Ichthys
LNG project in Australia in partnership with INPEX, and the
signature of an agreement with China National Petroleum
Corporation for the appraisal, development and production
of natural gas on the Sulige South block in China.
Australia
After acquiring interests in two blocks (WA-297P, WA-269P) early
in 2005, in 2006 TOTAL increased its offshore interests in both
exploration and development of previously discovered fields in
northwest Australia.
In February 2006 with the same partners as for Block WA-269P
(30%), TOTAL acquired a 30% share in the two adjacent blocks,
WA-369P and WA-370P, located in the Carnarvon basin near the
Pluto field. A 3D seismic campaign on these blocks was
completed in 2006 and four wells are scheduled to be drilled in
2007 and 2008.
Also in 2006, TOTAL acquired a 25% share in adjacent blocks,
WA-301P, WA-303P, WA-304P, and WA-305P, located in the
Browse basin. A well is scheduled to be drilled on Block WA-303P
in 2007.
In addition, in August 2006 TOTAL acquired a 24% interest in
Block WA-285P, also in the Browse basin. The Ichthys gas and
condensates field, in the same basin, has already had six
successful wells drilled since 2000. This field is expected to be
developed to produce an estimated 6 Mt/y to 10 Mt/y of LNG,
condensates and liquefied petroleum gas (LPG). In 2006, this
project received the Major Project Facilitation Status, which
should contribute to obtaining governmental approvals, expected
in 2008. The environmental evaluation of the development
scheme was launched in May 2006, and exploration and
appraisal drilling are planned for 2007.
In January 2007, TOTAL acquired an 80% interest, as operator,
for the lower levels of Block AC/P-37. A seismic campaign is
scheduled for 2007.
Bangladesh
Late in 2005, TOTAL signed an agreement to acquire 60% of two
offshore exploration blocks, 17 and 18, located southeast of
Bangladesh. The government approved this agreement on
March 14, 2007.
(1) Source : Wood MacKenzie, Deutsche Bank.
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Business overview
Upstream - Exploration & Production
TOTAL – Registration Document 2006
Brunei
TOTAL is the operator of the Maharaja Lela Jamalulalam field,
located offshore on Block B of Brunei Darussalam (37.5%,
operator). The Group’s share of production amounted to
15 kboe/d in 2006, compared to 13 kboe/d in 2005 and
14 kboe/d in 2004. After completing studies in 2006, TOTAL is
planning to drill several exploration wells on this block in 2007.
TOTAL is also the operator of deep-offshore exploration Block J
(60%), for which a production sharing contract was signed in
March 2003. Exploration operations on the 5,000 km 2 block have
been suspended since May 2003 due to a border dispute with
Malaysia.
China
Early in 2006, TOTAL and China National Petroleum Corporation
signed a production sharing contract for the appraisal,
development, and production of natural gas resources on
the South Sulige block covering an area of approximately
2,390 km2 in the Ordos Basin in the Inner Mongolia province.
The agreement was approved by the Chinese authorities and
became effective in May 2006. The appraisal work outlined in
the contract (seismic acquisition, well testing) began in
September 2006.
Indonesia
TOTAL has been present in Indonesia since 1968. Indonesia
represented 8% of the Group’s production in 2006, amounting to
182 kboe/d, the same level as in 2005, compared to 177 kboe/d
in 2004. TOTAL operates two offshore blocks in the East
Kalimantan zone, the Mahakam permit (50%, operator), and the
Tengah permit (22.5%).
TOTAL’s operations in Indonesia are primarily concentrated on the
Mahakam permit, which covers several fields including Peciko and
Tunu, the largest gas fields in the East Kalimantan zone.
TOTAL delivers its natural gas production to PT Badak, the
Indonesian company that operates the Bontang LNG plant. The
overall capacity of the eight liquefaction trains of the Bontang
plant is 22 Mt/y, one of the largest in the world (1) . The LNG
produced is primarily sold under long-term contracts with
Japanese, South Korean and Taiwanese purchasers that mainly
use it for power generation. In 2006, the production operated by
TOTAL on the Mahakam permit amounted to 2,648 Mcf/d, and
the gas delivered by TOTAL to Bontang accounted for more than
70% of the plant’s supply.
In 2006, TOTAL acquired a 49% share in the offshore East
Sepanjang block, located northeast of the island of Java. A
seismic acquisition campaign is scheduled and an exploration
well is expected to be drilled. Pursuant to a call for tenders
launched by the Indonesian Ministry of Mines and Energy in
2006, early in 2007 TOTAL was awarded the South East
Mahakam exploration block (50%, operator), located in the
Mahakam delta.