2007 Mid-year review Investor Relations - September 2007
Outlook for sustained demand growth Hydrocarbon demand by region* Hydrocarbon demand by product* +2% per year +2% per year on average on average Mboe/d Mboe/d LNG 150 150 +10% / year Other +2.5% / year Middle East Other gas…
Production growth concentrated in three major regions Change in global hydrocarbon production through 2015(e) (approx. 25 Mboe/d of additional production) Mboe/d 25 Gas Decline in mature areas offset Liquids Africa notably by…
New environment marked by structurally higher oil price Market supply to remain tight Impact of cost inflation Profitability of major projects (Example of an integrated heavy oil project) Changes or uncertainties in fiscal or…
Totals strategy in a new environment Resources of Total* Concentrate the bulk of investments on North hydrocarbons America South America Europe Reaffirm the priority to profitable and diversified Asia organic growth 40 years…
Major achievements since the start of 2007 Shtokman Phase I Dolphin Lindsey HDS Jura Normandy DHC Leuna HDS Sale of Milford Haven* Jura CO2 capture pilot project Arzew ethane cracker Dolphin Dalia Lindsey Conversion of…
Strong profitability of Total reflects growing competitive advantages Upstream net Profitability operating income Self-help programs of Total (ROACE*) (in /boe) Cumulative impact on net op. inc. (2004-1H07) Exxon Total Chevron Shell…
Strong cash generation and balanced allocation of resources Cash flow allocation Environment in first half 2007 generally comparable to first half 2006 Change in net debt and working capital Share buybacks Net investment…
2007 Capex program in line with target Capex by segment 2007(e) Capex on major projects (Group share) Chemicals Upstream Mahakam Kashagan Akpo Moho Bilondo Downstream Between 0.5 and 1.0 B 2007 Budget approx. 16 B* Ekofisk area…
Interim dividend increased by 15% to 1 per share Dividend* Pay-out ratio Dividend* (change 1H07 vs 1H06) (expressed in /share) Average 2000-04 2005 % 2006 200 1H07 Total 20 40% + 18% per year on average BP Chevron 150 Shell…
Exploration : increased efforts yielding more success Cumulative contribution from Progressive confirmation since the start of 2005 of exploration to reserve potential major projects originating from exploration successes Bboe…
New ventures : access to 6 billion boe since the start of 2005 2005 2006 2007* Yemen LNG Joslyn Sulige Brass LNG Ichthys LNG Qatargas II Shtokman Bboe 6 Other Approx. 7 years of Cumulative contribution production** 4 of…
Major projects fueling return to growth in 2007 Production and impact of growth Change in production on Totals net operating income among majors % % 2Q07 vs 2Q06 Impact on net Production operating income 1Q07 vs 1Q06 4 4 2…
Increased competitive advantage of Totals portfolio Hydrocarbon price realizations Technical costs Competitive advantage* (weighted-average liquids and gas vs Brent) (FAS 69) (vs average, before tax) /boe /boe /boe Brent 0 16…
Creating value in a higher cost environment Oil price and Capex for Profitability of investment criteria deep-offshore projects* deep-offshore projects /b 80 IRR** Brent Brent 60 base 100 Hurdle rate 40 2006 2007 Year…
Well positioned in high-growth segments Production Production Totals proved and mature areas* Middle East / Africa* probable reserves** % Mboe/d 100 Other gas 1.0 Rest LNG of world 50 20 years Other 0.5 liquids Heavy…
2006-2010 production growth target of 4% per year on average in a 60 /b environment kboe/d Projects share capacity op.* status 1,200 Joslyn Mining 84% 2x100 9 study Victoria 40% study 9 appr. Projects share capacity op.* status…
Sustained growth after 2010 thanks to 25 building blocks 25 giant assets 25 giant assets Approx. 40% of production in 2006 and more than 60% in 2015(e) Shtokman Sulige Surmont Joslyn Mboe/d* Mboe/d* Ichthys LNG Block 32 Brass…
Major advances in main growth segments for gas Atlantic Basin Arctic / Barents China Development of re-gas Snhvit : start-up 3Q07(e) Sulige : progress with projects on track Shtokman : Phase I under study development study Gas…
LNG strategy well adapted to changing global market Global supply / demand Totals LNG production* Totals LNG purchases (by destination) (by origin) Mt Global LNG demand Mt Mt +10% per year on average 15 Atlantic Middle East/Asia 15…
Totals LNG growth : 13% per year on average over 2006-2010(e) Totals LNG production* Position of majors and purchases on the LNG chain in 2015(e)** Mt Mt Shell Total Exxon BP Chevron 20 30 Production 10 20 LNG purchases…
Important contribution of LNG to Upstream profitability Production Net operating income Profitability of LNG chain (in B) (ROACE in 2012(e)) Mboe/d 3.0 Other LNG Upstream LNG chain base 100 2.0 Upstream Other 1.0 2006…
Strong Downstream profitability Adjusted net operating income (B) Safety performance TRIR* 0.6 3.5 8 1.2 Improvement of Self-help more than 50% 0.2 1.95 since 2003 1.7 1.75 Self-help Environment 4 2003 2006 1H06 1H07…
Outlook for sustained conversion margins over the medium term Global refining New projects European refining capacity vs demand* 2006-2015(e)* margins (TRCV) Demand Conversion Distillation Mb/d 2006-2010 : +1.9% per year Mb/d /t /b…
Three main axes to improve and expand Totals refining system Capital employed in major Optimization of portfolio of European refineries refining projects Desulfurization investments : Lindsey, Leuna Optimization of large European…
Increasing contribution of Downstream to net cash flow Downstream investments Downstream adjusted cash flow* B B 3 6 Major turnarounds Growth and valorization Refining 2 4 Energy, emissions Maintenance, safety, renovation…
Increasing profitability of Chemicals Adjusted net operating income (B)* Safety and reliability 0.25 1.1 Base 100 Self-help Petrochemicals Improved 0.3 Growth in 0.7 TRIR Chemicals 0.15 Specialties 0.5 Self-help 0.4…
Globally favorable outlook for petrochemicals Ethylene production Cost structure for by type of raw material* New cracker projects* polyethylene sold in China** 2007-2012(e) Mt Mt/y Logistics and commercialization Demand 50…
Six world-class sites to drive growth in petrochemicals Improve Consolidating in Europe energy efficiency* Continue to reduce breakeven : fixed costs, efficiency, reliability Concentrate styrene production at Normandy Base 100 2nd…
Growing contribution of Chemicals to net cash flow Net investments Adjusted net cash flow* B B Adjusted cash flow 1.0 Ethane & Asia Adjusted net cash flow petrochemicals 2 Other petrochemicals 0.5 1 Specialties 2003…
Outlook Investor Relations - www.total.com 3C1863
Expanding the model for growth by contributing to the moderation by benefiting local economies of energy demand and the fight by optimizing recovery rates through our projects against global warming Production Alwyn Flaring** 150…
Accessing new reserves for the long term through new partnerships and innovation Op. or Competitive Project Partner Country advantage to offer co-op. Majors Other companies Shtokman Gazprom Russia 9 Project execution State…
Combining growth and return to shareholders Change in capital employed 70% of capital employed in Upstream by 2012(e) Chemicals Progressive increase in Upstream Capex to fund end-2012(e) profitable growth in new environment Capex…
Strategy well adapted to evolving energy supply More than 40 years of hydrocarbon resources* R&D for the long term Canada Norway Russia Arctic Tight gas Sour gas Kazakhstan United Kingdom Qatar DME GTL micro Clean coal…
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