Total is stepping up exploration, extending the production potential of fields already on stream and developing innovative technologies to tap extreme resources.

New resources for Total

Increasing the resources available depends on:

• Discovering new fields.
• Winning new licenses.
• Bringing new discoveries on stream.

In 2007, we acquired more than 50 new licenses in 10 countries. We also launched the deep offshore Pazflor project in Angola and signed a major agreement with Gazprom to study the development of the Shtokman gas field in the Russian sector of the Barents Sea. We are planning to spend more than $1.8 billion on exploration in 2008.

At end-2007, we had a portfolio of proved and probable reserves of 20 billion barrels of oil equivalent , which represents a reserve life of more than 20 years at average 2007 production rates.

Innovation opens up new prospects

Innovation allows us to optimize the potential of existing fields and to develop non-conventional resources.

Boosting reserves recovery from existing fields
Conventional technologies enable just 35% of oil and up to 80% of gas in place in reservoirs to be recovered. Technological innovations enhance recovery and mean that mature fields⁽²⁾ —a category into which most of those identified and operated today fall—still enjoy substantial production potential. A variety of innovative technologies are used to maximize oil recovery, including:

• In situ combustion (also known as fire flooding).
• Injection of steam, miscible gas, carbon dioxide or polymers.
• Using seismic imaging to improve reservoir characterization. 

Total has increased reserves and extended the life of the Alwyn field in the North Sea, Abu Al Bukhoosh in Abu Dhabi (United Arab Emirates) and operated fields in Argentina, Cameroon and Gabon.

To expand this approach, Total has introduced a Resources Development Plan to systemically identify potential measures and technologies for all fields to enhance recovery.

Developing extreme resources

Deepwater oil and gas fields, extra-heavy oil⁽³⁾, very deep resources, sour natural gas and tight gas fields potentially hold significant energy reserves for the future. Using innovative technologies, we are tapping resources previously considered to be unproducible.

• Deepwater oil and gas in water depths of 500 meters or more: Total is a world-class operator in the deep offshore. We are continuing to broaden our base in regions that are home to this type of resource, such as sub-Saharan Africa, North America and South America. We are involved in an increasing number of projects of this type in the Gulf of Mexico (Green Canyon, Walkbridge) and in Angola’s Block 17, where we brought Dalia on stream in 2006 and Rosa in 2007.
• Extra-heavy crude oil: In Venezuela, we are a partner in PetroCedeño, a large-scale project to produce extra-heavy oil using an industrial-scale cold production process. In Canada, we are continuing preparations for two oil sands projects in the Joslyn and Surmont leases, using thermal recovery methods and mining techniques.
• Very deep reservoirs: Located at a depth of 4,000 meters or more, these reservoirs have very high pressures and temperatures that make their exploration, drilling and production especially complex. Since Elgin-Franklin was brought on stream in the North Sea in 2001, at a depth of 5,000 meters, Total has moved even further forward, for example with the 2006 development of the neighboring Glenelg field using a deviated well with a step-out, drilled to a depth of 5,600 meters.
• Sour gas and tight gas reservoirs: With our extensive experience in sour gas, which requires special treatment because of its high carbon dioxide and hydrogen sulfide content, we currently operate more than 60 sour gas fields worldwide. We are also active in tight gas projects, especially in Algeria.

Continuing to consolidate across the gas chain

Total has significant positions in natural gas, which accounts for a growing share of our portfolio. Our natural gas production grew 3.5%, to 4.84 billion cubic feet per day in 2007, making us the world’s fourth-largest private producer of natural gas.

A growth and diversification strategy for LNG

We are consolidating our positions across the increasingly integrated LNG chain. We already rank among the top five LNG producers worldwide and plan to grow our LNG sales by 13% a year between 2006 and 2010. By 2010, almost 40% of the gas we produce will be liquefied, versus 32% in 2007.

Upstream, we have interests in nine liquefaction plants in operation or under construction worldwide.

In the midstream, to ensure outlets for our projects in major global markets, we are expanding our gasification capacity. We are also a partner or have reserved capacity in six regasification terminals, in India, Mexico, France, the United Kingdom, Croatia and the United States.

In LNG shipping, a major step forward was taken in 2006, when our first directly chartered LNG carrier, the Arctic Lady, was commissioned.

⁽¹⁾Proved and probable reserves at end-2006 covered by exploration and production contracts, in fields where wells have been drilled, for which technical studies have demonstrated that development financial viability with a Brent price of $40/b; also includes share of Joslyn oil sands developed through open-pit mining.
⁽²⁾Whose production decline has begun or is about to.
⁽³⁾The gravity of extra-heavy oil is less than 10° on the American Petroleum Institute (API) scale.
⁽⁴⁾Liquefaction plants consist of “trains” where the processes to lower the gas’ temperature to approximately -160°C are carried out.