Our Businesses

Text size
- -A
- +A

Total Exploration & Production: Combining long-term growth and profitability.

In a context of very volatile oil prices, 2008 was an eventful year for Total's Upstream segment, with several good exploration successes, production start-ups and the launch of new projects. The Group is confident in the solidity of its portfolio and is pursuing its strategy of long-term investments.

Exploration and development: An active program in 2008

Total continued to follow an active exploration program in 2008, with exploration investments of consolidated subsidiaries amounting to 1,243 M€ (including unproved property acquisition costs). The main exploration investments were made in Angola, Nigeria, Norway, the United-Kingdom, Australia, the United States, Libya, Brunei, Gabon, Cameroon, Indonesia, China, the Republic of Congo and Canada.

The Group's consolidated Exploration & Production subsidiaries' development expenditures amounted to 7 B€ in 2008, primarily in Angola, Nigeria, Norway, Kazakhstan, Indonesia, the Republic of Congo, the United Kingdom, Gabon, Canada, the United States and Qatar.

Reserves: A solid, diversified and promising portfolio

As of December 31, 2008, Total's combined proved reserves of crude oil and natural gas were 10,458 Mboe (50% of which were proved developed reserves). Liquids represented approximately 54% of these reserves and natural gas the remaining 46%. At year-end 2008, Total's solid and diversified portfolio of proved and probable reserves ⁽¹⁾ represented 20 Bboe, or more than 20 years of production based on the 2008 average production rate, and resources ⁽²⁾ representing more than a 40 years of production.

These reserves are located for the most part in Europe (Norway, the United Kingdom, The Netherlands, Italy and France), Africa (Nigeria, Angola, the Republic of Congo, Gabon, Libya, Algeria and Cameroon), Asia/Far East (Indonesia, Myanmar, Thailand and Brunei), North America (Canada and the United States), the Middle East (Qatar, United Arab Emirates, Yemen, Oman, Iran and Syria), South America (Venezuela, Argentina, Bolivia, Trinidad & Tobago and Colombia) and the Commonwealth of Independent States (CIS) (Kazakhstan, Azerbaijan and Russia).

Reserves

The definitions used for proved, proved developed and proved undeveloped oil and gas reserves are in accordance with the applicable United States Securities & Exchange Commission (SEC) regulation, Rule 4-10 of Regulation S-X.

Proved reserves represent the estimated quantities of Total's entitlement under concession contracts, production sharing contracts or buyback agreements. These estimated quantities may vary depending on oil and gas prices.

Reserves at year-end 2008 have been determined based on the Brent price on December 31, 2008 ($36.55/b).

If reserves had been estimated in accordance with Rule 4-10 of Regulation S-X, using the same perimeter and if the Brent price at December 31, 2008 had been 93.72$/b (the year-end 2007 price), reserves would have amounted to 10,351 Mboe.

Production: Underlying growth of 1%

For the full-year 2008, hydrocarbon production was 2,341 kboe/d, a decrease of 2% compared to 2007, mainly as a result of:

+3.5% of growth from start-ups and ramp-ups of new major projects, including Dolphin, Rosa, Jura and Dalia, net of the normal decline on existing fields.

-2.5% for unscheduled shutdowns, mainly on the Elgin-Franklin field in February, the Bruce and Alwyn fields in the summer, and the Al Jurf field from April to the end of December 2008.

-2% for the price effect ⁽³⁾; and

-1% for changes in the portfolio.

Liquids accounted for approximately 62% and natural gas accounted for approximately 38% of Total's combined liquids and natural gas production in 2008 on an oil equivalent basis.
As in 2007, substantially all of the crude oil production from Total's Upstream segment in 2008 was marketed by the Trading & Shipping division of Total's Downstream segment.

Producer and/or operator

Consistent with industry practice, Total often holds a percentage interest in its fields rather than a 100% interest, with the balance being held by joint venture partners (which may include other international oil companies, state-owned oil companies or government entities).

Total frequently acts as operator (the party responsible for technical production) on acreage in which it holds an interest.

(1) Limited to proved and probable reserves covered by E&P contracts on fields that have been drilled and for which technical studies have demonstrated economic development in a 60 $/b Brent environment, including projects to be developed by mining.

(2) Proved and probable reserves plus potential median recoverable reserves from known accumulations (Society of Petroleum Engineers - March 2007)

(3) Impact of changing hydrocarbon prices on entitlement volumes

Sources: Total in 2008

Boîte à outils