Business overview
2
Upstream
2.1. Exploration & Production
2
.1.1. Exploration and development
TOTAL’s oil and gas reserves are consolidated annually, taking
into account, among other factors, levels of production, field
reassessments, additional reserves from discoveries and acquisitions,
disposal of reserves and other economic factors. Unless otherwise
indicated, any reference to TOTAL’s proved reserves, proved
developed reserves, proved undeveloped reserves and production
reflects the Group’s entire share of such reserves or such
production. TOTAL’s worldwide proved reserves include the proved
reserves of its consolidated subsidiaries as well as its proportionate
share of the proved reserves of equity affiliates. For further
information concerning changes in TOTAL’s proved reserves
for the years ended December 31, 2012, 2011 and 2010, see
TOTAL’s Upstream segment aims at continuing to combine long-term
growth and profitability at the level of the best in the industry.
TOTAL evaluates exploration opportunities based on a variety of
geological, technical, political and economic factors (including taxes
and license terms), and on projected oil and gas prices. Discoveries
and extensions of existing fields accounted for approximately 77%
of the 2,016 Mboe added to the Upstream segment’s proved
reserves during the three-year period ended December 31, 2012
(before deducting production and sales of reserves in place and
adding any acquisitions of reserves in place during this period).
The remaining 23% comes from revisions of previous estimates.
The level of revisions during this three-year period was significantly
impacted by the effects of the increase of the reference oil price
“Supplemental Oil and Gas Information (Unaudited)” in Chapter 10.
The reserves estimation process involves making subjective
judgments. Consequently, estimates of reserves are not exact
measurements and are subject to revision under well-established
control procedures.
(from $59.91/b in 2009 to $111.13/b in 2012 for Brent crude)
and the decrease of the U.S. onshore gas price (from $4.21/MBtu
in 2011 to $2.85/MBtu in 2012 for Henry Hub), which together
induced a substantial negative revision.
The reserves booking process requires, among other things:
–
internal peer reviews of technical evaluations to ensure
that the SEC definitions and guidance are followed; and
In 2012, the exploration investments of consolidated subsidiaries
amounted to €2,634 million (including exploration bonuses
included in the unproved property acquisition costs). Exploration
investments were made primarily in Angola, the United Kingdom,
the United States, Norway, Iraq, Nigeria, Brazil, Malaysia, the
Republic of Congo and French Guiana. In 2011, the exploration
investments of consolidated subsidiaries amounted to €1,629 million
– that management makes significant funding commitments
towards the development of the reserves prior to booking.
For further information regarding the preparation of reserves
estimates, see “Supplemental Oil and Gas Information (Unaudited)”
in Chapter 10.
(including exploration bonuses included in the unproved property
acquisition costs). The main exploration investments were made in
Norway, the United Kingdom, Angola, Brazil, Azerbaijan, Indonesia,
Brunei, Kenya, French Guiana and Nigeria. In 2010, the exploration
investments of consolidated subsidiaries amounted to €1,472 million
2.1.3. Proved reserves
In accordance with the amended Rule 4-10 of Regulation S-X,
proved reserves for the years ended on or after December 31, 2009,
are calculated using a 12-month average price determined as the
unweighted arithmetic average of the first-day-of-the-month price
for each month of the relevant year unless prices are defined by
contractual arrangements, excluding escalations based upon future
conditions. The reference prices for 2012, 2011 and 2010 were,
respectively, $111.13/b, $110.96/b, and $79.02/b for Brent crude.
(including exploration bonuses included in the unproved property
acquisition costs) notably in Angola, Norway, Brazil, the United
Kingdom, the United States, Indonesia, Nigeria and Brunei.
The Group’s consolidated Exploration & Production subsidiaries’
development investments amounted to €14 billion in 2012, primarily
in Angola, Norway, Canada, Australia, Nigeria, the United Kingdom,
Gabon, Kazakhstan, Indonesia, the Republic of the Congo, the
United States and Russia. The Group’s consolidated Exploration
As of December 31, 2012, TOTAL’s combined proved reserves of
oil and gas were 11,368 Mboe (51% of which were proved developed
reserves). Liquids (crude oil, condensates, natural gas liquids and
bitumen) represented approximately 50% of these reserves and
natural gas the remaining 50%. These reserves were located in
Europe (mainly in Norway and the United Kingdom), in Africa
(mainly in Angola, Gabon, Libya, Nigeria and the Republic of the
Congo), in the Americas (mainly in Canada, Argentina and Venezuela),
in the Middle East (mainly in Qatar, the United Arab Emirates and
Yemen), and in Asia (mainly in Australia, Kazakhstan and Russia).
& Production subsidiaries’ development investments amounted to
€10 billion in 2011, primarily in Angola, Nigeria, Norway, Kazakhstan,
the United Kingdom, Australia, Canada, Gabon, Indonesia, the
Republic of the Congo, the United States and Thailand. The Group’s
consolidated Exploration & Production subsidiaries’ development
investments amounted to €8 billion in 2010, mostly in Angola, Nigeria,
Kazakhstan, Norway, Indonesia, the Republic of the Congo, the United
Kingdom, the United States, Canada, Thailand, Gabon and Australia.
2
.1.2. Reserves
As of December 31, 2011, TOTAL’s combined proved reserves
of oil and gas were 11,423 Mboe (53% of which were proved
developed reserves). Liquids (crude oil, natural gas liquids and
bitumen) represented approximately 51% of these reserves
and natural gas the remaining 49%. These reserves were located
in Europe (mainly in Italy, Norway and the United Kingdom),
in Africa (mainly in Angola, Gabon, Libya, Nigeria and the Republic
of the Congo), in the Americas (mainly in Canada, the United States,
Argentina and Venezuela), in the Middle East (mainly in Qatar,
the United Arab Emirates and Yemen), and in Asia (mainly in
Australia, Indonesia, Kazakhstan and Russia).
The definitions used for proved, proved developed and proved
undeveloped oil and gas reserves are in accordance with the
United States Securities & Exchange Commission (SEC) Rule 4-10
of Regulation S-X as amended by the SEC Modernization of Oil
and Gas Reporting release issued on December 31, 2008. Proved
reserves are estimated using geological and engineering data to
determine with reasonable certainty whether the crude oil or natural
gas in known reservoirs is recoverable under existing regulatory,
economic and operating conditions.
10
TOTAL. Registration Document 2012
