PARIS, Feb. 20 -- For 2007 Total SA has earmarked €16 billion for overall capital expenditure, of which €13 billion is for the upstream, including a "continuing sustained exploration program.
At its annual press conference Feb. 14, the company reported a 102% replacement of proved reserves in 2006. Over 2004-06, the company's proved reserves were replaced at the rate of 110%, it said, based on $40/bbl Brent.
Total replaced 127% of proved and probable reserves in 2006 and nearly 200% over 2004-06. This was achieved mainly through internal growth, although some reserves were also acquired, as in Canada's tar sands, indicated Christophe de Margerie, Total's new CEO and former head of the exploration and production division.
With 20.5 billion boe of proved reserves, De Margerie sees Total's oil production improving over the next 20 years or so. Over the last 2 years, it had fallen to slightly over 2.4 million b/d but picked up in fourth-quarter 2006. The group is now banking on a 6% growth this year, instead of the 7% originally scheduled, due to the impact of the Organization of Oil Exporting Countries' quotas.
During 2006-10, Total is targeting a production growth averaging over 5%/year, based on projects due on stream or already in its pipeline, to reach 3 million b/d, said De Margerie.
The group is especially banking on West Africa's deep offshore as it capitalizes on the successful development of Dalia field on Angola's offshore Block 17 (OGJ Online, Dec. 15, 2006). Off Nigeria, Egina has been confirmed as a major oil field, the launch of Usan and Pazflor is being prepared, and engineering studies are under way on Block 32 and on CLOVa fourth major production area based on the Cravo, Lirio, Orquidea, and Violeta discoveries.
Total also is preparing for the next generation of deep offshore projects emerging from ongoing exploration on Blocks 32, 17, and 14 off Angola and Nigeria's "triangular bulge."
Total is targeting a number of projects in Canadanonconventional oil and LNG. It is expecting a 13% growth in its LNG development in the medium term.