(Company marks 75 years in UAE with ADCO licence coming up for renewal in 2014)
Abu Dhabi 6 June 2013 -- The UAE has emerged as the largest operations base for Total of France in the Middle East and the company is set to mark 75 years of presence in the country coinciding with the upcoming renewal of ADCO concession next year.
Total, one of the world's largest oil firms, said it is involved in eight hydrocarbon ventures in the UAE with a 2012 equity production of 248,000 boe-day.
"We are most active in the UAE, where we are present in E&P, LNG, petrochemicals and solar power," the company said in papers presented at a recent seminar in Paris.
"We are also heavily integrated in Qatar, with operations spanning E&P, LNG, refining and petrochemicals; in fact, we just signed an agreement on April 21 to expand operations at the Ras Laffan refinery...we have been present there for 76 years."
The third country for Total in the region is Yemen, where it is present in oil production and LNG and recently marked 26 years of operations.
In Oman it has equity in projects of the state oil producer PDO, Oman LNG, and there are other projects in the pipeline. The company said it is has representative offices in Saudi Arabia, Iran and Kuwait and it is also operating in Syria and in the downstream sector in Jordan and Lebanon.
"We have been active in the UAE since 1939... our 75th anniversary coincides with the renewal of the ADCO licence in 2014. We are partners in eight ventures including the offshore oil and gas development Total Abu Al Bukhoosh (where we produce 0.5 billion cubic feet of gas per day on behalf of ADNOC and 10,000 b/d of crude; we have a 75% shareholding and are the field operator working with INPEX of Japan)," it said.
The company said Total ABK is the first field in the world where Total has used full field gas-lift technology, adding that it is also an example of exceptionally high recovery rates on the oil side (50%+ from some reservoirs).
"This capability in mature field development is an important consideration as we look to continue our partnership with Abu Dhabi in the future."
It said Total has a 9.5% stake in ADCO, and 13.3 stake in the ADMA-OPCO company whose offshore licence comes up for renewal in 2018 along with the licence for Total ABK.
It is also partners in GASCO, a venture extracting added value from Abu Dhabi's condensates production, noting that its relationship with GASCO was extended for 30 years three years ago.
"We are also partners in ADGAS, the first LNG project in the region, on Das Island. The role of ADGAS will inevitably evolve now that Abu Dhabi is a net importer of natural gas, chiefly for field reinjection," the company said.
It said other flagship projects in the UAE include Dolphin Energy; the Taweelah electricity and desalinated water plant; the fertiliser production complex Fertil; and the recently inaugurated Shams 1, the largest CSP plant in operation in the world.
Turning to its worldwide operations, Total said it holds around 11.4 billion barrels of proven hydrocarbon reserves, or 1P reserves.
Its other resources account for four times the volume of 1P reserves, it said, adding that its resources are also evenly distributed around the world.
"We have the most diverse operations and resource portfolio among the main oil and gas companies, with a foothold in every continent. We also have a balanced presence in the main technological segments, between liquids, deep offshore, heavy oil and conventional gas. Our products portfolio is also balanced."
Total noted that its exploration strategy has become bolder but it carries more potential. It said that in 2013 it has 16 'elephant' projects under way, a record, and this year it will drill 7 billion barrels of 'risked exploration potential'.
"Our annual investment in exploration has increased, from $1.5 billion to $2.8 billion....we expect 3% production growth overall between 2011 and 2015 to reach 3 mbpd by 2017... 90% of 2017 potential is already in production or being developed."
The papers showed Total's average Middle East production is around 550,000 b/d in 2013, or 25% of the company's total global production.
"The Middle East is one of six global regions in the Total portfolio and our E&P operations in the region have 1,500 employees. When we talk of the Middle East, we refer to the Gulf states, Yemen, Lebanon, Jordan, Iran, Iraq and Syria; Egypt falls outside and we have no production at this time in Iran."
Total said it remained strongly committed to health, safety and the environment, noting that it works to assess and minimise risks, to mitigate incidents when they occur.
The company said its performance on HSE has improved, with total recordable incidents rate per 1 million man hours standing at only 1.3.
"This is low and is being achieved amidst growing activity across the Group.... we expect to deliver 200 million man hours in 2013. However, our HSE performance can be improved further. In terms of reducing environmental impacts, for example, we aim to half natural gas flaring between 2007 and 2014 and increase the energy efficiency of our operations," the company said.
Turning to hydrocarbon resources in the world, Total estimated them at around 3.500 billion barrels, or 100 years of supply at present consumption levels. An estimated total of 1,200 billion barrels of oil have been produced to date, it said.
"Looking at 'probable' reserves only, there is 35 years of oil supply at current production rates... but if you add the likely reserves as a result of improved recovery techniques, tight oil and shale oil and as yet unfound resources, there is another 80 years of supply at current production rates."
It estimated natural gas reserves at 2500 billion barrels but noted that the gas equation has changed immensely due to unconventional resources, such as shale gas and tight gas. Around 600 billion barrels of natural gas have been produced so far, and 130 years of supply remain at today's production levels, Total said, adding that unconventional gas accounts for nearly 1,600 billion barrels of future production.
"Hydrocarbon resources may be substantial but there remains the challenge of producing these reserves. Comparing total output in 2005 with 2010 shows that oil production has actually declined by around 35 million b/d due to oilfields maturing; another 50 million b/d of production, therefore, has to be found and brought to market, equivalent to 250 large projects or 'five Saudi Arabias'," Total said.
"Huge investment is needed in oil production between now and 2025. A significant amount of this production will come from unconventional resources. The high production of resources needed requires a break-even crude price of at least $90....significant investment in oil production is necessary because of the volume needed and because consumer prices and operating costs have more than doubled."
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© Press Release 2013
