total E&P norge AS annual report
Contents 02 05 07
key figures about total E&P norge stepping up board of directors’ report
15 16 18 19 20 29
income statement Balance sheet cash flow statement accounting policies notes auditor’s report
31
organistion chart
IFC
IBC our interests on the NCS
TOTAL E&P NORGE is involved in exploration and production of oil and gas on the Norwegian continental shelf, and produced on average
287 000
barrels of oil equivalents every day in 2011.
Strong position and long-term focus We are in the process of strengthening our position as a field operator on the Norwegian Continental Shelf. The PDO for the Atla field, located in the North Sea, has been approved. Atla is a small, fast-track, subsea development.
We have also submitted the PDO for the Martin Linge field, located in the North Sea, to the Ministry of Petroleum and Energy. Martin Linge will be developed as a standalone platform together with a floating storage and offloading unit.
key figures 2011
2010
Total revenues
51 326
47 777
41 571
Operating profit
36 185
29 774
22 006
(213)
(236)
134
Net income before taxes
35 971
29 539
22 140
Taxes on income
26 262
20 184
16 397
9 709
9 354
5 744
19 276
13 711
15 804
Million NOK
2009
INCOME STATEMENT
Financial income / (expenses) – net
Net income Cash flow from operations BALANCE SHEET
Intangible assets
794
1 200
1 342
Investments, property, plant and equipment
49 438
48 821
51 978
Current assets
12 191
6 829
6 131
Total equity
6 698
6 589
6 635
26 180
23 670
24 497
126
1 129
8 160
29 418
25 463
20 158
Acquisition of property, plant and equipment Mill NOK
10 410
8 308
9 615
Exploration activity, costs and investments Mill NOK
1 682
671
1 153
Rate of return on capital employed*
61.0%
69.4%
33.0%
Production cost USD/bbl
7.5
6.8
6.1
Transport cost USD/bbl
4.6
4.1
4.2
(9 999)
(13 692)
3 693
287
310
327
1 057
1 065
997
289
277
270
Long-term provisions Long-term liabilities Current liabilities
OTHER KEY FIGURES
PRODUCTION thousand boe
Net average daily production RESERVES OF OIL AND GAS million boe
Proved developed and undeveloped reserves at 31.12 employees
Average number of employees
* Net income plus financial expense after tax as a percentage of capital employed at 1 January. Capital employed consists of total equity and liabilities less non-interest carrying debt.
51 326 36 185 287 1 057 289 Total revenues million NOK
Operating profit million NOK
PRODUctiON (Net average daily production) thousand boe
RESERVES OF OIL AND GAS (Proved developed and undeveloped reserves at 31.12) million boe
employees (Average number during 2011)
Stepping up
current cable; the longest ever constructed. The main contracts will be placed in 2012, subject to the final approval of PDO by the Storting expected before summer. Production start-up is planned for late 2016. The project organisation is now well established, and Total E&P Norge is actively recruiting in the Norwegian market. There are signs of capacity constraints in some of the supplier industries, and we continue our sustained efforts to manage costs.
in 2011, and the construction of a new living quarter and a large new wellhead platform on Ekofisk, as well as the redevelopment of Eldfisk are progressing well. We are also participating in several new development projects operated by Statoil in the North Sea and in the Norwegian Sea, including the Åsgard subsea compression project pioneering this technology. As license partner Total E&P Norge’s ambition is to play an active and constructive role; sharing our experience and resources for the common good.
2011 will be remembered for the renais-
Following two successful exploration/appraisal wells drilled in 2010, Total E&P Norge AS as operator, last year prepared two PDO’s for approval by Norwegian authorities for the fields that are now known as Atla and Martin Linge, respectively. Atla is a small satellite field connected to Heimdal via our operated Skirne field; an ultra fast-track subsea development with the ambition to have production start-up in the autumn only two years after the discovery. The Martin Linge field, named after the Norwegian Second World War hero, is a major development of a gas/condensate field together with a separate oil reservoir. This development will re-establish Total E&P Norge as a significant field operator in Norway; an objective we have maintained since we shut down production on Frigg in 2004 and completed the Frigg Cessation Project in 2010.
The Martin Linge field will be developed with a steel jacket based production, utilities and quarters platform and an FSO for final treatment, storage and offloading of the oil. Development drilling will start in 2014 with a heavy-duty jack-up. The gas will be evacuated through a pipeline connecting to the existing FUKA pipeline to St Fergus in Scotland. The platform will have power supply from Kollsnes through a 170 km long alternating
sance of exploration on the Norwegian Continental Shelf (NCS) with major discoveries such as the Johan Sverdrup Field and Skrugard/ Havis. Total E&P Norge made two discoveries – Norvarg in the Barents Sea, and Alve North in the Norwegian Sea. Even with the constraints in the Norwegian rig market, Total E&P Norge has firm plans to drill some six operated exploration/appraisal wells over the next three years, starting with the Garantiana prospect in 2012 and followed by appraisals on both Norvarg and Alve North in 2013. We were also very pleased to be awarded additional acreage in the 2011 APA license round.
Total E&P Norge holds an extensive position on the Norwegian Continental Shelf as owner of 90 production licences, whereof 22 as operator. We have participations in 35 producing fields and hold the largest reserve base in Norway among the international oil companies. Total E&P Norge’s 2011 production (287 kboe/d) constitutes approximately 12% of the TOTAL Group production and is the biggest contributor among all TOTAL subsidiaries. In 2011, investments reached 12 BNOK and will continue to increase in the years ahead. Last year we also realised a one-off gain from the sale of our participating interests in the Gassled gas transportation network. All in all, 2011 was one of our strongest years ever in Norway. Most importantly, Total E&P Norge’s ambitious objectives with regard to health, safety and environment for our operated activities were met in 2011.
TOTAL undertakes a substantial Research and Development (R&D) effort in Norway, with basis in a dedicated research centre in Stavanger. In 2011, the total R&D-budget was 220 MNOK, which is second only to Statoil in Norway. It is TOTAL’s policy to make new technology available and share it when needed in the licences. Last year was also a historic year in the Barents Sea, as the agreement between Russia and Norway on the demarcation line in the earlier Disputed Area came into force on 7 July 2011. It is encouraging to see that Norwegian authorities are determined to secure a timely opening of these areas for petroleum activities. TOTAL’s clear ambition is to actively participate with all our ‘savoir faire’ in the competition for new awards in the Barents Sea and its new Eastern extension. We have been in the Barents Sea since the first licenses were awarded north of the 62nd Parallel in 1980, a major participant in the Snøhvit development, and now operator on the Norvarg discovery. During the first months of 2012, we have been reminded of the inherent risks involved in our business. The gas leak on the Elgin field, operated by our sister company TOTAL E&P UK, has shown that we must remain humble and vigilant in relation to the challenges facing us. We remain focused in all our work to secure a safe environment for our operations: Safety first!
The Greater Ekofisk Area, with ConocoPhillips as operator, is the Company’s single most valuable asset in Norway. The Ekofisk South and Eldfisk II projects were sanctioned
Martin Tiffen Managing Director Total E&P Norge AS
5
THE board of directors’ report
1
Introduction
Total E&P Norge AS (Total E&P Norge), a wholly-owned subsidiary of the France based TOTAL Group, is engaged in exploration for and production of hydrocarbons on the Norwegian Continental Shelf. The Board of Directors’ report and the accounts have been prepared based on the Company’s continuity as a going concern, and in the opinion of the Board of Directors this is justified. 2011 has been an active and successful year for Total E&P Norge, and we have continued to build on our solid platform of long-term presence and knowledge of the Norwegian Continental Shelf. As an operator, we: Drilled two successful exploration wells on Norvarg in the Barents Sea and Alve Nord in the Norwegian Sea. Received the approval of the Atla Plan for Development and Operation (PDO). Progressed the Hild PDO application through internal and partner approvals allowing the submittal of the PDO to the Norwegian authorities in January 2012. Made applications in the Awards in Predefined Areas 2011, which resulted in an offer of five new operated licenses and three as partner, all in the North Sea. As a partner, the main events included: The Storting’s approval of the PDOs for the Ekofisk South and Eldfisk II projects. The sanction of the Åsgard subsea compression project and five ‘Fast Track’ projects where Total is partner. Concerning health, safety and environment (HSE), Total E&P Norge met its main objective, avoiding any fatal or serious accidents in 2011, in an environment characterised by high activity and rigorous demands as regards HSE when drilling in the Barents and Norwegian Seas. Production in 2011 was at a yearly average of 287 thousand barrels of oil equivalents per day. This level of production, in a context
of rising oil and gas prices, and together with sustained efforts to manage costs and the one-off gain resulting from the sale of participating interests in the Gassled, has led to a satisfactory year in terms of financial results. The considerable work and effort by our staff within the existing perimeter of activity, together with awards in the licensing rounds, confirm the Company’s dedication to and strength on the Norwegian Continental Shelf.
2
Activities on the Norwegian Continental Shelf
Licence portfolio management Total E&P Norge signed an agreement with Bridge Energy Norge AS on 21 February 2011 to farm-in and take a 40% interest in production licences PL554 and PL554B. The deal was successfully completed on 31 May. Total E&P Norge is now the operator of this license, where the plan includes drilling a well in 2012. On 10 September 2010, Total E&P Norge, Statoil Petroleum AS (Statoil) and ExxonMobil Exploration and Production Norway AS (Exxon) entered into an agreement whereby the three companies agreed to submit a joint application for a block adjacent to PL046 / PL072 / PL303 and harmonise the interests in the area. As a result of the transaction, Total E&P Norge acquired a 10% share of PL072C from Exxon, a 10% share of PL303B from Statoil and obtained a 10% share in PL569 in the APA 2010 licensing round. The transactions were approved by the authorities in December 2011 and completed in January 2012. Total E&P Norge and Statoil entered into an agreement on 24 October 2011 whereby the Company took an additional 2% in Hild (PL040, PL043 and PL043BS). In exchange, Total E&P Norge assigned its entire 2.5% share in the Valemon unit (5% in PL193B and PL193D) to Statoil. The agreement was completed in January 2012 before
submission of the Hild PDO, but with effect from 1 January 2011. As a result of the asset swap, Total E&P Norge’s interest as operator in Hild increased from 49% to 51%, while Statoil’s interest was reduced from 21% to 19%. The remaining 30% interest is held by Petoro. In June 2011, Total E&P Norge agreed to sell its entire direct and indirect interest of 6.4% in the Gassled Joint Venture to Silex Gas Norway AS. The sale was approved by the Norwegian authorities in December 2011 and the closing of the sales process took place on 24 January 2012 and has contributed to a one off positive net result of around 2 billion NOK in the 2011 financial statements. The sale is part of the Group’s strategy to focus on upstream assets. Total E&P Norge will of course continue to participate in Norwegian gas infrastructure as a shipper.
Licensing rounds In the Awards in Predefined Areas (APA) 2010 on 4 February 2011, Total E&P Norge was formally awarded the role of operator with a 100% share in PL585 (blocks 6406/7 & 8) in the Norwegian Sea. The Company was also awarded shares in three licences, all in the North Sea and with Statoil as operator. These shares consisted of a participating interest of 40% in PL574, further, a participating interest of 10% in PL569 and finally, a participating interest of 5% in PL193C. In line with our application for APA 2011, on 16 January 2012 Total E&P Norge was offered shares in eight new licences, all in the North Sea and five of which are operatorships; two in the very southern part of the North Sea; a 60% share in PL618 and 50% in PL619. The remaining three licences are located in the vicinity of the operated Atla field and the North Utsira High Area and comprise an interest of 40% in PL102E, 40% in PL102D and 40% in PL627. PL618 carries a firm well commitment. Finally, the Company was offered a participating interest in three licences operated by Statoil; 5% in PL193E, 10% in PL046D and 10% in PL104 B.
7
Exploration
Drilling Operated In August 2011, the drilling vessel West Phoenix successfully completed the exploration drilling of the Norvarg prospect (PL535) in the Barents Sea, approximately 275 km north of Hammerfest. A successful production test was carried out with good flow rates. Preliminary estimates place the size of the discovery between 10 and 50 billion Sm3 of recoverable gas. In October 2011, the drilling rig Songa Delta successfully completed the exploration well on the Alve Nord prospect (PL127) in Haltenbanken. Both oil and gas were proven in the well. Preliminary estimates of the size of the discovery are between 20 and 100 million barrels of oil equivalents recoverable. Development of the discovery will be considered in conjunction with other fields in the area.
Operated by others Total E&P Norge participated in the drilling of three exploration wells on the Norwegian Continental Shelf during 2011, all operated by Statoil. Two were discoveries in the North Sea; Ermintrude West in PL048 discovered gas and potential development concepts are being evaluated together with Dagny. Theta North East in PL569 discovered small amounts of gas /condensate and the license will evaluate the discovery together with other nearby discoveries. The exploration well in PL488 in the Barents Sea was plugged and abandoned as dry.
carbon processing, gas export and accommodation. Final oil water separation will be on a Floating Storage and Offloading (FSO) vessel moored on the field and connected to the platform, before the oil is offloaded to shuttle tankers. The gas from Hild will be exported via a new 24” pipeline to be connected to the Frigg UK Pipeline and Frigg UK Terminal at St. Fergus (FUKA) in Scotland. Power will be supplied through a 170 km long subsea AC cable from Kollsnes to Hild. Expected production start from Hild is 4Q 2016.
In August 2011, the drilling vessel West Phoenix successfully completed the exploration drilling of the Norvarg prospect (PL535) in the Barents Sea, approximately 275 km north of Hammerfest. Atla The PDO for the Atla 2010 gas discovery was delivered to the MPE on 7 July 2011 and approved by the Norwegian authorities on 4 November 2011. Atla will be developed as a 7 km tie-back into the existing infrastructure between Skirne and Heimdal, with the hydrocarbons processed on Heimdal. In 2011 activities focused on the engineering and procurement phases of the Project, with the offshore installation planned in 2012 ahead of the scheduled October 2012 start-up.
Skirne The Skirne field produced above expectations in 2011. The availability of the Skirne subsea installations has been high through-out the year, whereas that of the Heimdal host platform has been lower than anticipated.
Operated by others
Highlights development projects, evaluations and operations Operated
Statoil Barents Sea The Snøhvit project in the Barents Sea has suffered from various mechanical problems since the first LNG production in September 2007 and some challenges still remain.
Hild A Hild concept selection was made in the partnership at the end of 2010, marking the beginning of the pre-project phase. The Basic Engineering phase started in September 2011. The project was approved by the partners 13 January 2012 and the Hild Plan for Development and Operation (PDO) was handed over to the Ministry of Petroleum and Energy (MPE) on 19 January 2012. The Hild development concept consists of a platform with topside facilities for hydro-
8
Statoil and Shell Norwegian Sea On Åsgard in the Norwegian Sea, the PDO for the Åsgard Subsea Compression Project was submitted to the authorities in August 2011. As time progresses, the pressure from the reservoirs is becoming too low to maintain a stable flow and high production rates back to the platform. To compensate for this, compressors on the seabed near the well heads will be installed to increase the pressure and thereby also increase the
recovery from the Midgard and Mikkel fields. The decision represents a technology step that can contribute to increased recovery and prolonged lifetime on mature fields. Total E&P Norge has seconded personnel to the project. On the Shell-operated Linnorm development in PL255, a concept selection was made in 2011. The concept is a development with subsea wells and a 50 km tie-back to the Draugen installation. The partnership continues to mature the Linnorm project towards an investment decision in 2013. On Åsgard, the Smørbukk North East development has been executed and first production is planned in early 2012.
Statoil North Sea On Troll, two major projects have been sanctioned in 2011. In July, the Troll management committee approved contracts for two category D rigs to be built for production drilling. The contracts are for eight years each, with drilling to start in 2014 /2015. This is part of a four rig strategy for production drilling on Troll. The third and fourth compressor projects were sanctioned in mid-September; startup for the new compressors is scheduled for 2015. In addition, Troll was granted an increased gas production permit of 30 GSm3 for 2011, compared with 24 GSm3 for 2010. Starting in May 2011, the Visund field experienced several months of shutdown due to technical problems with some of the risers. The affected risers will have to be replaced over the coming years. Visund South, the first of Statoil’s new fast-track projects, is developed as a subsea tie-back to Gullfaks C. The PDO was issued in January 2011, and first oil is expected in 2012. The Visund North fast-track project was sanctioned in November 2011, and first oil is expected late 2013. In 2011, Oseberg has experienced high activity at the field centre in order to reduce the maintenance and modification back log and to accelerate major projects such as the Oseberg B drilling upgrade and the refurbishment of the living quarters. The development of Stjerne (formerly Katla), a subsea satellite to Oseberg Sør, was sanctioned by the license partners in April 2011 and the PDO was approved by the authorities in September. The project aims for production start-up in early 2013, and will be developed according to Statoil’s fast-track philosophy. In the Heimdal area, Heimdal field production was suspended at the end of the year due to concerns over well integrity. Vale production is still shut down due to failure of
wax removal in the condensate export line from Heimdal to Brae. The fast-track project, Vilje Sør, was sanctioned in September 2011. This is an infill well on the Vilje field tied in to existing infrastructure on the seabed. The Glitne license has approved a new well on the field to be drilled in 2012. After license extension was granted by the MPE in January 2012, the field life has been extended to end 2014. Huldra production is exceeding expectations due to the low pressure production mode and better than expected well productivity. Two Sleipner Vest Beta wells were successfully put in production in April 2011 from Sleipner B and have performed well. During 2011, Sleipner A evaluated several requests for third-party use (Luno / Draupne, Dagny /Ermintrude, Eirin, Varg). In addition, the implementation of the third-party field Gudrun project was initiated, a project that will contribute to cost sharing in the future. The Dagny /Ermintrude and Eirin partners approved passing the concept selection gate in December 2011. The Dagny / Ermintrude development consists of a manned jacket based platform where oil is processed on the platform and offloaded from a floating storage unit and the gas is transported to Sleipner A. The Eirin field will be developed as a subsea tie-back to the Dagny / Ermintrude platform.
The Hild development concept consists of a platform with topside facilities for hydrocarbon processing, gas export and accommodation. Expected production start from Hild is 4Q 2016. The Vigdis North East fast-track project was approved by the license in April 2011. The project includes installation of a subsea template (installed in November 2011) and drilling of four subsea wells. Production is expected to start in early 2013. For the Snorre 2040 project, a screening of scenarios has been carried out and a concept selection is planned towards the end of 2012.
ConocoPhillips Greater Ekofisk area The new leased temporary accommodation unit has been mobilised, and the unit was put in service at the Ekofisk Complex in August 2011. The execution of the permanent new Ekofisk Accommodation and Field Centre Project continued throughout 2011.
The topside is being built by SMOE in Singapore and the jacket by Kværner at Verdal. The cost forecast is within budget. The Ekofisk South Project objective is to increase production and recovery by expanding infill production drilling and implement water injection support in the southern area of the field. The project was approved in the license in February 2011, and the PDO was approved by the Norwegian Storting in June 2011. A new wellhead platform to be tied into the Ekofisk Complex is being built by Kværner Egersund, the topside bridge and jacket by Dragados Offshore in Cadiz. A new subsea water injection facility is being built by FMC Technologies Norway. Drilling of the wells will be performed by jack-up drilling rigs already on contract. The project is within budget and on schedule with first oil production in December 2013 and first water injection in September 2013.
The Ekofisk South Project objective is to increase production and recovery by expanding infill production drilling and implement water injection support in the southern area of the field.
3
Financial highlights
3.1 Comments on the Income Statement Production volumes production volumes In 2011, the average daily quantities produced were 287 thousand barrels of oil equivalents (kboe) per day, 7.4% below the 2010 level when a yearly average production of 310 kboe per day was achieved. 40% of these boe came from gas production, equivalent to an average of 17.5 million standard cubic meters per day. Overall 2011 production was impacted by drilling delays in the Ekofisk area and unplanned shutdowns in Snøhvit. Some risers and drilling issues reduced the production on Tampen Area (Visund and Snorre) and Troll gas lifting was lower than forecasted. Production by other fields, on the other hand, was better than anticipated. In 2011, the 39.9% interest in PL018 Ekofisk area remained the largest contributor in production terms, the equivalent of 35.2% of the Company’s overall production.
Revenues The Eldfisk II Project objective is to redevelop the Eldfisk and Embla fields to enable exploitation beyond 2015. The project was approved in the license in February 2011 and the PDO was approved by the Norwegian Storting in June 2011. A new wellhead, process and accommodation platform at the Eldfisk Complex is being built by Kværner Stord, the topside bridges and jackets by Dragados Offshore in Cadiz. The new platform will be tied into the Eldfisk Complex. The existing platforms at Eldfisk and Embla will be converted, modified and/or upgraded. A new jack-up drilling rig to perform the main drilling campaign has been contracted and is currently under construction at the Jurong yard in Singapore. The project is within budget and on schedule with first oil production in January 2015. With the aim of increasing production and recovery rate, studies are ongoing to redevelop the Tor field to enable production beyond 2015. Studies addressing revitalization of earlier produced fields, as well as area discoveries, are ongoing in the license. The cessation work in the Ekofisk area has progressed on schedule and below budget during 2011 and work will continue in 2012.
In 2011, yearly revenues were Norwegian kroner (NOK) 51 326 million compared with NOK 47 777 million for 2010. Amounts reported for 2010 include a gain of NOK 1 504 million for the disposal of participations in the Valhall and Hod licences, as well as insurance reimbursements in relation to damage the Ekofisk W platform sustained in 2009. Crude oil and gas sales were NOK 49 129 million in 2011 compared to NOK 42 267 million NOK in 2010, with higher realisation prices for liquids offsetting the impact of lower volume. The average price achieved for oil and condensates was US dollar (USD) 112.89 per barrel, an increase of 40.4% compared to the USD 80.4 per barrel average price achieved in 2010. Revenues from oil and other liquids were NOK 37 263 million compared to 31 160 million in 2010. The yearly average price of gas delivered by the Company in 2011 (including LNG) increased significantly compared to 2010. For gas delivered under long-term sales agreements, prices increased, reflecting with a few months delay the situation encountered for oil products to which they are linked. Price for spot gas sales showed a marked improvement compared to 2010.
9
LNG sales prices increased as a result of commercial optimisation of the sold LNG cargoes from the Snøhvit LNG plant. Gas revenues reached NOK 11 866 million in 2011, up from NOK 11 107 million, in the preceding year. The Company was impacted in 2011 by a strengthening of the NOK against most other currencies. The Company’s accounts are denominated in NOK whilst all liquids sales are invoiced in USD, and gas sales predominantly invoiced in Euros (EUR), pounds sterling or USD. The average exchange rate for NOK/USD was 5.6 down 7.3% compared to 6.04 in 2010. The average NOK/EUR exchange rate was 7.8 down 2.5% compared with 8.00 in 2010. Tariff income of NOK 2 076 million includes transportation tariffs and processing fees: they are 19% below the NOK 2 565 million realised in 2010 due to a lower participating interest in Gassled assets during the year 2011.
Operating expenses After deduction of charges to partners, net operating costs were NOK 15 141 million compared to NOK 18 003 million in 2010. This reduction results in large part from the changes in the Company’s valuation methodology regarding the underlift /overlift position for oil, gas, condensate and LNG, being valued at the last known prices at the closing date instead of their production cost. Applying this new approach, the product stock variation was increased in 2011 by NOK 3 221 million. The accrued effect after tax of this change is to NOK 680 million. Total E&P Norge has sold its participating interest in Gassled assets during the year 2011 to Silex Gas Norway AS. This sale has contributed to a one-off positive net result of about NOK 2 billion, recorded in part as ‘other operational costs’ and in part as current and deferred tax. Production and transportation expenses are lower than initially forecasted mainly because of slippages of works from 2011 to 2012 (particularly on Ekofisk area). They are also lower than in 2010 mainly because of reduction of transportation costs. Total E&P Norge has achieved several technical successes in exploration during the year (in particular in operated licences) and related expenditures have therefore been capitalized for further economical evaluation. The licence acquisition book value of some assets has been amortized during the year, generating a slight increase in the depreciation costs for 2011 compared to 2010.
10
Net income The pre-tax profit for 2011 was NOK 35 971 million compared with NOK 29 539 million recorded in 2010. After taking into account current and deferred taxes of NOK 26 262 million, the net profit for the year was NOK 9 709 million compared with NOK 9 354 million in 2010.
3.2 Comments on the Statement of Cash Flows
increased its assets in progress in relation with its material development and exploration expenditures, and the producing assets have been lowered by the disposal of the Gassled participating interests. Total current assets have increased by NOK 5 363 million to NOK 12 191 million. This increase is due to the change in valuating methodology of the underlift /overlift position and by the year-end receivable position related to the Gassled sale transaction.
Equity and Liabilities Cash Flows Cash flow from operations was NOK 19 276 compared to NOK 13 711 million in 2010. All funding requirements for the year were met from internal group resources.
Investments Investments totalled NOK 10 410 million (including exploration, appraisal and capitalised interest), which represents a 25.3% increase compared with the NOK 8 308 million in 2010. The largest investments were linked to facilities and drilling for the Ekofisk Area (in particular the new projects related to Ekofisk South and Eldfisk II), and to additional investments in the Åsgard and Visund fields. Besides that, Total E&P Norge has also made in 2011 a significant exploration effort.
Sales of Property, Plant and Equipment As ownership of the Norwegian midstream gas transportation assets was no longer considered a core business of the Company, Total E&P Norge sold its participating interest in the Gassled system with an economical date of 1 January 2011 for NOK 4.6 billion.
Financing At year-end, financing arrangements were in place with an affiliated company for NOK 5 000 million, representing loans and overdraft facilities to meet the projected requirements. The actual cash flow situation of the Company contributed to limit the drawing needs during the course of the year.
3.3 Comments on the Balance Sheet Fixed Assets Total fixed assets have slightly increased to NOK 50 232 million after depreciation and amortisation. However, two main changes modified significantly the breakdown of the tangible fixed assets: Total E&P Norge has
Total equity has increased by NOK 109 million to NOK 6 698 million after allocation of the proposed dividend. Total liabilities have increased by NOK 5 463 million to NOK 55 724 million, mainly due to the increase in its tax payable position. At the end of 2011 the long-term loan financing arrangements in place with associated companies were not utilised.
Proposed Dividend A dividend distribution of NOK 9 600 million is recommended.
3.4 Comments on the Financial Risks Market risk The Company is exposed to changes in currency exchange rates, in particular USD and EUR, as the Company’s revenues are largely in these two currencies, and to changes in oil and gas prices. The Company hedges the exposure on recognised crude oil sales in foreign currencies and on a significant portion of its gas sales. The Company is also exposed to changes in interest rate levels, as the Company’s debt is subject to a floating interest rate.
Credit risk Risk associated with the inability of counterparties to fulfil their obligations is considered low, as the Company’s sales are mainly to group companies and other large corporations. The Company has not realised losses on receivables in previous years.
Liquidity risk The Company’s liquidity is considered satisfactory. It is anticipated that the Company will be able to fund its future cash requirements through cash-flows from operations, and internal loans within the TOTAL Group.
4
Employees and organisation
At the end of 2011, the total number of staff employed by the Company was 353. This figure includes 246 local employees, 57 expatriated staff and 14 integrated contactors in the Total E&P Norge organisation. There are also 36 employees assigned abroad or to partners in Norway included in the total figure. Total E&P Norge is preparing its organisation for new operated activity in connection with the Hild and Atla developments. An extensive recruitment process is ongoing, and will last for several years. The current labour market for experienced professionals in the Stavanger region is tight, but the Company will not compromise as regards the required competence and qualifications. In addition to recruitment, considerable effort is being devoted to providing development opportunities for employees already present in the organisation.
The Total E&P Norge organisation is very international. At year-end, 23 different nationalities were represented in the organisation. Diversity and internationalisation have been priority areas for several years and are part of our long-term strategy. The Total E&P Norge organisation is very international. At year-end, 23 different nationalities were represented in the organisation. Diversity and internationalisation have been priority areas for several years and are part of our long-term strategy. Our local staff includes a total of 104 women. At senior position levels, 22% of the employees are women. In 2011, the Company recruited 33 new employees. Twelve persons work part-time for the Company, eleven of these are women. All remaining staff are in full-time positions. 40% of the local employees were union members belonging to one of the following organisations: TEKNA, IndustriEnergi Avdeling 268 and NITO. Total E&P Norge is a member of OLF, the Norwegian Oil Industry Association, which is affiliated with NHO, the Confederation of Norwegian Enterprise.
5
Applied research
The R&D centre in Total E&P Norge is the largest of five international R&D centres outside France within the Exploration & Production (E&P) branch of the TOTAL Group. All of these centres are part of an integrated strategy for research. Total E&P Norge’s R&D objectives focus on challenges connected to the Norwegian Continental Shelf, while the TOTAL Group provides access to the substantial research undertaken in France and elsewhere. The Norwegian Petroleum Directorate operates FORCE, a forum for reservoir characterisation, reservoir engineering and exploration technology co-operation. Total E&P Norge contributes in specialised subcommittees in FORCE. The Research Council of Norway runs two major R&D programmes aligned with the OG21 priorities: these are PETROMAKS, covering basic research, and DEMO2000, covering development and demonstration. Total E&P Norge takes an active role in both programmes, providing technical expertise, pilot testing opportunities and financial support for projects. The research programmes in which Total E&P Norge is engaged cover three technical domains: subsurface including drilling and well technology, production and environment. In addition to participation in research projects – usually within a joint industry project format – there is participation in the training of young professionals coming from both French and Norwegian universities. Through R&D co-operation with the Norwegian universities, Total E&P Norge financed and contributed professionally to the supervision of seven students’ PhD projects in 2011.
6
HSE performance, operated activity in 2011
The Company met its main objective, avoiding any fatal or serious accidents in 2011. There were nevertheless two recordable injuries during the year; both were Lost Time Injuries (LTIs). One of the LTIs was on a drilling rig; a person lifted a valve by hand in the workshop and got two fingers squeezed during the lifting operation. The other LTI was on a survey vessel where a person got his
finger trapped in the gate for an equipment storage cage. The result was a minor fracture in the finger tip. None of the incidents had a higher risk potential. The objective of completing at least 94% of the HSE programme for 2011 was fulfilled, with 98% achieved. Most of the activities in the programme aim at improving the HSE standards in operated activities, i.e. Norvarg and Alve Nord drilling operations. Particular efforts were made for the drilling of the Norvarg well in the Barents Sea where a high HSE standard is required and expected. Environmental management, handling of drill cuttings, clothing and robust emergency preparedness are examples where enhanced standard were implemented compared with drilling further south. HSE performance throughout the operation proved to be satisfactory. A total of 77 audits and verifications were performed in 2011. The majority were related to verification of marine vessels. In 2011, absence due to illness in the Company was 1.9% compared with 2.0% in 2010, while the total absence due to illness (employees’ own illness and leave due to own children’s illness) was 2.1%. A campaign to promote and record physical activity was carried out amongst the employees. Further, a campaign to reduce neck, shoulder and back pain and a colon and prostate cancer screening campaign were offered to employees. The Company has a Rehabilitation Committee that is responsible for providing relevant assistance to employees suffering from long-term illness.
7
Environmental accounts and impact
The environmental objectives for the year were met with no spills from the Company’s operations subject to mandatory Petroleum Safety Authority notification. Further, the objective of no harmful impact on the marine environment was achieved for the Norvarg and Alve Nord drilling operations. Environmental impact assessments or risk assessments for our activities have been undertaken on a regular basis. These have been based on offshore environmental monitoring and detailed knowledge of inventories and the environment around our operation sites, as well as the probability, duration and estimated quantity for a blow-out scenario,
11
Chemical use and discharges from drilling / 2011 (tonnes)
Norvarg used
exported discharged
Alve Nord used
exported discharged
used
exported discharged
Total Green Substances
3 111
2 049.1
213.91
2 321.7
861.57
814.01
5 433
2 911
1028
Total Yellow Substances
124.2
79.8
0.364
349.95
2
10.65
474
346
11
Total Red Substances
0.651
0
0
0.93
0.93
0
1.58
0.93
0
1.47
0
0
9.31
0
0
10.8
0
0
Total Black Substances
when applicable. Based on the conclusions of these assessments and the principle that the Company always adheres to the authorities’ regulatory requirements and Company rules, whichever are more stringent, we are confident that Total E&P Norge manages the environmental impact of its activities in a sound manner. The certification according to the ISO 14001 standard has been maintained. The periodical audit conducted by Det Norske Veritas Certification AS revealed only minor deviations, which have been corrected or will be corrected before the new re-certification audit. Detailed information on our environmental accounts and their impact can be found in the annual discharge report submitted through the joint electronic reporting format for the Climate and Pollution Agency (Klif), the Norwegian Petroleum Directorate (NPD) and the Norwegian Oil Industry Association (OLF). This report is accessible from the OLF website (www.olf.no). Two reports were prepared to evaluate whether the environmental objectives for the
Norvarg and Alve Nord wells, zero harmful impact to the marine environment, had been met. This assessment concluded that no significant impacts to the marine environment were observed. Physical impact on the sedimentary environment was limited to immediate vicinity of the well location, resulting from deposition of drill cutting material. As regards the production and operations of the operated field Skirne, no major change in the emissions compared to the previous year’s figures was recorded in 2011. The accounts for discharges from both the Norvarg and Alve Nord wells are found in the table above, including environmental characterisation of the chemicals discharged. Black chemicals cover hydraulic oils used on the rig that do not have HOCNF data. In addition to 7 751 tonnes of water based mud and cuttings from Norvarg and Alve Nord, disposed of on site, a total of 1 907 tonnes of oil based mud and cuttings were brought to shore for treatment. The CO2 and NOX emissions from our operated activities in 2011 are illustrated in the figures below.
NOx emissions for operation and support activities (tonnes)
CO2 emissions for operation and support activities (1 000 tonnes)
400
329
20
300
15
200
10
19.9
6.5
62 100
5
0
0 norvarg
12
total
alve nord
norvarg
alve nord
8
Outlook for 2012
The Board is of the opinion that 2012 will be a significant year for Total E&P Norge in its commitment to secure the future growth and development of the Company as an important operator on the Norwegian Continental Shelf (NCS). With the submittal of the Hild PDO in January 2012 to the Norwegian authorities and provided the Storting’s approval, Total E&P Norge will be entering the execution phase of a development leading towards a substantial operated production. Combined with a very high activity level in all parts of the organisation the challenges in 2012 are many. The Board wishes to highlight a few of these: Meet the demanding Company ambitions with regard to health, safety and the environment. Successful completion and start-up of the operated Atla production on plan and budget in October. Approval of the Hild PDO by the Storting in the summer of 2012. Timely progress of the Hild development project in close co-operation with our main contactors towards planned production start-up in late 2016. Successfully complete drilling and testing of the Garantiana prospect in PL554 in the North Sea and timely preparations of the appraisal wells on the Norvarg and Alve Nord discoveries in the Barents and the Norwegian Seas respectively. It is hoped that one or more of these projects can lead to future field development. Be an active and constructive partner with influence on key decisions within our portfolio of non-operated licences. Special attention will be given to Ekofisk Accommodation, Eldfisk II redevelopment
and the Ekofisk South projects to closely monitor the cost development and schedule. Continue the search for new licences and operatorships through applications in the 22nd Licensing Round and APA 2012, in addition to portfolio optimisation activities. Maintain and recruit the competence needed for our future activity level. Furthermore, Total E&P Norge attaches high importance to corporate social responsibility and the due compliance by all Company staff and our co-operating partners with the Ethics Charter and Code of Conduct determined by the TOTAL Group. With respect to the framework conditions on the NCS that affect our sector, the following may be highlighted: The increases in oil prices in 2007 /2008 were associated with significant cost inflation on the NCS that has persisted into 2011. This causes concern in relation to the marginal profitability of many new field developments on the NCS, and although the oil price has rebounded during 2011, gas prices remain lower on an energy equivalent basis. The Board takes note of the agreement between Norway and Russia regarding previously disputed area in the Barents Sea East and the statement made by the Minister of Petroleum and Energy on proposing an opening of this new area for licensing to the Storting in the first half of 2013. These measures together with a substantial offer of new licenses in the
22nd Licensing Round will secure important and timely access for the petroleum industry to new acreage in prospective areas in northern waters. As large parts of the Norwegian Continental shelf matures, the emphasis will switch to the management of lifetime extension for maturing fields and facilities, particularly through the tie-back of smaller satellite discoveries and/or more challenging reservoirs. This requires an evolution in thinking, towards cost effectiveness, enabling technologies and greater standardisation of solutions. This must be addressed by all players in the industry – authorities, oil companies, contractors and service companies.
The Board’s general optimism for the future development of the Company is based on its confidence in the quality and competence of the Company’s staff in Norway.
9
Accounts
The 2011 accounts and explanatory notes are presented in this annual report. We are not aware of any matters not dealt with in this report or the accompanying accounts that could be of significance when evaluating the Company’s position at 31 December 2011 and the results of the year thus ended. Taking into account the legal requirements, it is proposed that the Company’s net profit shall be distributed as follows: 2011 net income To retained earnings Dividend
NOK 9 709 000 000 NOK
109 000 000
NOK 9 600 000 000
The Company’s financial results in 2012 depend on the achievement of production and expenditure targets, and are partially dependent upon prevailing hydrocarbon prices and foreign exchange rates. The Board’s general optimism for the future development of the Company, as expressed above, is based on its confidence in the quality and competence of the Company’s staff in Norway.
The Board of Directors of TOTAL E&P NORGE AS // 7 March 2012
Patrice de Viviès
Eric Denelle
Odd Roger Enoksen
Dominique Paul Marion
Tom Ruud
Kristine Holm*
Line Steinnes*
Olav Steffensen*
MARTIN TIFFEN
Jean-Pierre Sbraire
Chairman
Harriett Elizabeth Dreyer*
* Employees’ representatives
Managing Director
13
income statement Million NOK
Notes
2011
2010
1
49 129
42 267
6 862
2 076
2 565
(489)
121
2 946
(2 825)
51 326
47 777
3 548
Variance
REVENUES
Crude oil and gas sales Tariff income Sundry income TOTAL REVENUES OPERATING EXPENSES
Purchases of gas Salaries and employee benefits
3, 4
Licence fees, royalties and governmental expenses Production and transportation expenses
186
209
(23)
628
707
(79)
481
520
(39)
8 122
8 434
(312)
Exploration expenses
237
189
48
General and administrative expenses
206
213
(7)
7
1 583
1 545
38
10
6 365
6 183
182
(3 221)
2
(3 223)
554
0
554
OPERATING EXPENSES
15 141
18 003
(2 549)
OPERATING PROFIT
36 185
29 774
6 097
Provisions for well plugging, dismantlement and removal Depreciation, depletion and amortization
5, 6
Variation of product stock Other operating cost
2
FINANCIAL INCOME AND (EXPENSES)
Financial income
8
89
50
39
Financial expenses
8
(206)
(315)
109
Income from subsidiary and related companies
37
89
(52)
Net exchange gains/(losses)
(133)
(59)
(74)
FINANCIAL INCOME/(EXPENSES) – NET
(213)
(236)
22
ORDINARY NET INCOME BEFORE TAXES
35 971
29 539
6 118
25 137
21 165
3 972
Taxes payable
9
Deferred taxes
9
NET INCOME
1 125
(981)
2 106
9 709
9 354
355
ALLOCATION
Dividend
13
9 600
9 400
200
Retained earnings
13
109
(46)
155
9 709
9 354
355
TOTAL ALLOCATION
15
BALANCE SHEET Million NOK / At 31 DECEMBER
Notes
2011
2010
Variance
10
794
1 200
(406)
794
1 200
(406)
FIXED ASSETS INTANGIBLE ASSETS
Licence acquisitions TOTAL INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT
8, 10
Buildings
235
333
(98)
Producing assets – completed
41 188
44 493
(3 305)
Producing assets – in progress
5 573
1 969
3 604
Exploration wells – in progress
2 081
1 472
609
62
74
(12)
49 139
48 341
798
11
200
342
(142)
4
0
26
(26)
Machinery and equipment TOTAL PROPERTY, PLANT AND EQUIPMENT FINANCIAL INVESTMENTS
Shares Net pension assets Long-term receivables
99
111
(12)
TOTAL INVESTMENTS
299
480
(180)
TOTAL FIXED ASSETS
50 232
50 021
212
405
320
85
Net oil/gas (overlift)/underlift
3 643
422
3 221
TOTAL INVENTORIES
4 047
742
3 306
CURRENT ASSETS INVENTORIES
Material and supplies
ACCOUNTS RECEIVABLE
Customers
4 211
5 551
(1 340)
Other
3 932
208
3 724
TOTAL ACCOUNTS RECEIVABLE
8 143
5 758
2 384
0
328
(328)
TOTAL CURRENT ASSETS
12 191
6 829
5 363
TOTAL ASSETS
62 423
56 850
5 573
CASH AND CASH EQUIVALENT
16
12
12
Notes
2011
2010
Variance
Share capital (4 201 000 shares à 1 000.00)
13
4 201
4 201
0
Share premium
13
2 340
2 340
0
6 541
6 541
0
157
48
109
157
48
109
6 698
6 589
109
Million NOK / At 31 DECEMBER
EQUITY PAID-IN CAPITAL
TOTAL PAID-IN CAPITAL RETAINED EARNINGS
Retained earnings
13
TOTAL RETAINED EARNINGS TOTAL EQUITY
LIABILITIES LONG-TERM PROVISIONS
Pension obligations
4
520
464
56
Deferred taxes
9
15 337
14 232
1 105
Well plugging, dismantlement and removal
10 324
8 973
1 351
26 180
23 670
2 511
0
1 000
(1 000)
Other long-term liabilities
126
129
(3)
TOTAL LONG-TERM LIABILITIES
126
1 129
(1 003)
7, 15
TOTAL LONG-TERM PROVISIONS OTHER LONG-TERM LIABILITIES
Long-term loans from associated companies
14
CURRENT LIABILITIES
Overdraft facilities
12
404
0
404
Accounts payable and accrued expenses
12
3 066
2 272
794
46
39
7
16 246
13 699
2 547
9 600
9 400
200
56
53
3
TOTAL CURRENT LIABILITIES
29 418
25 463
3 955
TOTAL LIABILITIES
55 724
50 261
5 463
TOTAL EQUITY AND LIABILITIES
62 423
56 850
5 573
330
319
Taxes other than income taxes Income taxes payable
9
Proposed dividend Other short-term debt
Guarantees
3
17
Cash flow statement Million NOK
2011
2010
Variance
CASH FLOWS FROM OPERATING ACTIVITIES
Net income before taxes
35 971
29 539
6 432
Current taxes on income
(25 137)
(21 165)
(3 972)
Depreciation, depletion and amortisation
6 365
6 183
182
Long-term provisions
1 548
659
889
529
(1 504)
2 033
19 276
13 711
5 565
Accounts receivable and prepaid expenses
(2 384)
(407)
(1 977)
Inventories
(3 306)
37
(3 343)
Loss / (gain) on sales of property, plant and equipment Cash flows from operations
Cash increase/(decrease) from variations in:
Accounts payable and accrued liabilities Accrued taxes Long-term receivables NET CASH PROVIDED BY OPERATING ACTIVITIES
804
(579)
1 383
2 547
3 152
(605)
12
13
(1)
16 948
15 927
1 021
(10 410)
(8 308)
(2 102)
CASH FLOWS FROM/(TO) INVESTING ACTIVITIES
Capital expenditures Proceeds from sales of property, plant and equipment NET CASH USED IN INVESTING ACTIVITIES
3 788
6 403
(2 615)
(6 622)
(1 905)
(4 717)
(1 000)
(6 000)
5 000
(3)
(1 031)
1 028
CASH FLOWS FROM/(TO) FINANCING ACTIVITIES
Increase/(decrease) in associated long-term liabilities Increase/(decrease) in other long-term liabilities Increase/(decrease) in overdraft facilities
404
(861)
1 265
Dividend paid to shareholder
(9 400)
(5 800)
(3 600)
NET CASH FLOWS FROM/TO FINANCING ACTIVITIES
(9 999)
(13 692)
3 693
Net increase/(decrease) in cash and cash equivalents
328
328
0
Cash and cash equivalents at 01.01
328
0
328
0
328
(328)
CASH AND CASH EQUIVALENTS AT 31.12
18
Accounting policies The financial statements are presented in accordance with the regulations in the Accounting Act and Norwegian Generally Accepted Accounting Principles. Revenue recognition. Revenues associated with sales and transportation of hydrocarbons is recognised when title passes to the customer at the point of delivery of the goods based on the contractual terms of the agreements. Other services are recognised at the time of delivery. Joint Ventures. The Company’s shares in joint ventures are booked under the respective lines in the profit and loss statement and the balance sheet. The income statement of Total E&P Norge reflects the Company’s net share of operations. Balance sheet classification. Current assets and short-term liabilities consist of receivables and payables due within one year after transaction date. Other balance sheet items are classified as fixed assets / long-term liabilities. Current assets are valued at the lowest of acquisition cost and fair value. Short-term liabilities are recognised at nominal value. Fixed assets are valued at cost, less depreciation and impairment losses. Long-term liabilities are recognised at nominal value. Foreign currency translation. Transactions in foreign currency are translated at the rate applicable on the transaction or invoicing date. Monetary items in a foreign currency are translated into NOK using the exchange rate applicable on the balance sheet date or, if covered by forward currency exchange contracts, at the contract rate. Changes to exchange rates are recognised in the income statement as they occur during the accounting period. Intangible assets, property, plant and equipment. Costs related to intangible assets, property, plant and equipment are capitalised and depreciated linearly over the estimated useful life. Maintenance is expensed as incurred, whereas costs for improving and upgrading property, plant and equipment are added to the acquisition cost and depreciated with the related asset. Depreciation charges for license acquisitions, offshore and onshore production installations, booked under operating expenses, are determined by the unit-of-production method. Other onshore property, plant and equipment are depreciated by use of the declining balance method. If carrying value of a non current asset exceeds the estimated recoverable amount, the asset is written down to the recoverable amount. The recoverable amount is the greater of the net realisable value and value in use. In assessing value in use, the discounted estimated future cash flows from the asset are used. Exploration. Exploration costs are treated in accordance with the successful effort method, with the well as basis for the evaluation. Exploratory drilling costs are capitalised pending the determination of whether the wells found proved reserves. If the wells are determined commercially unsuccessful costs are expensed as depreciation. Geological and geophysical costs are expensed as incurred. Research and development. Research and development costs are expensed as incurred. Capitalisation of interest costs. Interest costs incurred in connection with the financing of development projects, individually stipulated to accumulate expenditures in excess of NOK 800 million are capitalised as part of the development costs.
Shares. The investment is valued as cost of the shares in the subsidiary, less any impairment losses. An impairment loss is recognised if the impairment is not considered temporary, in accordance with generally accepted accounting principles. Impairment losses are reversed if the reason for the impairment loss disappears in a later period. The operations of the subsidiaries are considered immaterial compared to the level of the Company’s business, and consolidated accounts have therefore not been prepared. Group accounts are prepared by the holding company TOTAL S.A. resident in France. Inventories. Consumable inventories consist of equipment for exploration and field development, and are calculated at average purchase prices. Spare parts are charged to operations when acquired. Over-/Underlifting. As from 2011 the overlift and underlift of petroleum products is valued at sale price and presented as current asset in the balance sheet. In 2010 and earlier years, the valuation practice used by the Company was that overlift or underlift balances for oil and gas produced were accounted for by adjusting cost of sales and current assets and liabilities to reflect the actual sales (the sales method). Adjustments for underliftings (deferment of costs) were made at the lowest of cost of sales and estimated future market values. Using the same principle in 2010 as for 2011 would change the opening balance of the net underlift/overlift position from MNOK 422 to MNOK 2 069, with an associated change in deferred tax. The net equity would have been increased by MNOK 169. Future well plugging, abandonment and removal costs. Annual provisions are made to meet future costs for decommissioning, abandonment and removal of installations. Provision requirements are reviewed on an individual field basis, and the net present value of future costs is the basis for the recognised obligation. Changes in time element (net present value) of the abandonment provision are expensed annually and increase the obligation in the balance sheet. Changes in estimates are recognised over the remaining production period, unless the production is for material purposes completed. In such a case the change in estimate is recognised immediately. Pensions. Defined benefit plans are valued at the present value of accrued future pension benefits at the balance sheet date. Pension plan assets are valued at their fair value. Changes in the pension obligations due to changes in pension plans are recognised over the estimated average remaining service period. The accumulated effect of changes in estimates and in financial and actuarial assumptions (actuarial gains or losses) exceeding 10% of the higher of defined benefit pension obligations and pension plan assets at the beginning of the year, is recognised in the income statement over the estimated average remaining service period. The net pension cost for the period is classified as salaries and personnel costs. Income tax. Income taxes reflect both current taxes and taxes payable in the future as a result of the current year’s activity. When calculating the deferred taxes, the Company uses the liability method, under which deferred taxes are calculated applying legislated tax rates in effect at the closing date. Earned future deductible uplift allowance is offset against the special tax when calculating deferred taxes. Cash flow statement. The statement of cash flow has been prepared in accordance with the indirect method as pr the temporary Norwegian accounting standard.
Leasing commitments. Leasing agreements without transfer of substantially all the risk and control to the lessee are considered as operational leasing. The Company’s leasing costs in operating lease are reflected as operating expenses.
19
notes
01
Crude oil and gas sales
Million NOK
2011
2010
Crude oil
33 576
27 899
NGL
2 723
2 227
Gas
11 866
11 107
964
1 034
49 129
42 267
Condensate Total Most sales of petroleum products are within Europe with some LNG cargoes sold in other markets. The main part of the oil and liquids sales are to Group companies.
02
Other operating costs
The Company disposed of its participating interest in the Gassled system with economic effect 1 January 2011 for 4.6 BNOK. For accounting purposes the closing date is 31 Desember 2011
03
Salary, employee benefits, number of employees 2011
2010
Salaries
356
433
Social security and other benefits
100
108
62
69
Other
110
97
Total salaries and employee benefits
628
707
Average number of full-time employments
289
277
Million NOK
Pension cost
Fees paid to the Board of Directors in 2011 amount to NOK 572 500. Salaries and remunerations to the Managing Director amount to NOK 5 467 517 in 2011. There are no agreements with the Managing Director or The Board of Directors for special bonuses or separate remuneration in connection with termination. The General assembly of TOTAL S.A. has decided restricted share plans and share subscription option plans. The restricted shares plan is subject to certain conditions of economic
20
and the proceeds from the sale were 3.8 BNOK. The one off profit impact from this transaction including all tax effects was in the order of 2 BNOK.
performance of the TOTAL S.A. group after a vesting period. Certain employees of Total E&P Norge AS were invited to participate in the plans. Given the immaterial value of the benefits, no expense has been recognised in the accounts. Long-term receivables contain loans to employees of NOK 25 million. Total have also issued a guarantee to Nordea for loans to Total employees of total NOK 330 million as pr 31.12.2011.
04
Employee retirement plans
The Company maintains a collective benefit retirement plan with DNB. The plan gives all employees on national payroll (281 at 31.12.11), a right to receive defined future pensions. In addition, this plan also includes retired personnel (237 at 31.12.11) who receive defined future pensions.
Employees under French and other benefit plans are the responsibility of other related companies. Total E&P Norge is charged with the net periodic pension costs covering those employees. The Company also has partly unfunded plans for certain employees with higher salary. 2011
2010
Service cost
84
71
Interest cost
69
86
(54)
(58)
37
62
136
161
Net funded pension plan
Net Unfunded pension plan
1Â 374
849
918
167
(456)
(682)
Million NOK
Return on pension plan assets Amortised prior service cost Net periodic pension cost The following statement presents the status of the plans at 31 December 2011: Million NOK
Projected benefit obligation Pension plan assets Net projected pension assets (obligation) Unrecognised actuarial (gains)/losses
439
179
Net pension asset/(provision)
(17)
(503)
2011
2010
2.5–3.4 %
2.5–3.4 %
Projected wage increases
4.0 %
4.0 %
Projected Pension regulation
3.8 %
3.8 %
Projected return on plan assets
4.8 %
5.0 %
Net unfunded plans are presented under long-term provisions.
The actuarial present value has been calculated using the following assumptions:
Discount rate
21
05
Auditor
The audit fee for work performed in 2011 amounted to NOK 4 566 000, of which NOK 2 146 000 was for audit,
06
Production and transportation expenses
Operating costs reflect a compensation – of NOK 400 million for 2011 – as part of the exchange of participating interests on the Norwegian Continental Shelf in 1988. In 2011, the Company has incurred expenses of NOK 95 million on Research and Development activities. The Company’s R&D programme is a part of the TOTAL Group plan and is aimed at improving the value of our current and future investments on the Norwegian Continental Shelf. The focus is on improving
07
understanding, developing new methodologies, models and hardware in the areas of enhanced oil recovery, reservoir/ well monitoring, flow assurance and environmental assessment/monitoring. The programme of work is accomplished through joint industry projects collaboration with Norwegian universities and institutes. The programme also recognises technical challenges set out in the national technology strategy, OG21.
Provisions for future well plugging, dismantlement and removal costs
The 2011 provision for future well plugging, dismantlement and removal costs has been calculated at NOK 1 583 million using the unit-of-production method. Incurred costs in 2011
08
NOK 301 000 for other attestation services and NOK 2 119 000 for tax and VAT advice.
amounting to NOK 763 million have been offset to previous year’s provisions.
Financial income and expenses
Million NOK
2011
2010
Financial income
Interest income from group companies
88
50
Other interest income
1
-
Total financial income
89
50
(31)
(170)
(210)
(146)
35
1
(206)
(315)
Financial expenses
Interest expenses to group companies Other interest expenses Capitalised financial interest Total financial expenses Interest costs capitalised is related mainly to development expenditures on Ekofisk area.
22
09
income taxes
Taxes include both current and deferred taxes on income. The special petroleum tax has been calculated after the deduction of the available uplift allowance.
2011
2010
Net income before taxes
35 971
29 539
Permanent differences*
(2 299)
(5 897)
Change in timing differences
(1 612)
4 167
Basis for current tax calculation
32 060
27 809
(179)
120
Uplift
(2 295)
(2 286)
Basis for Special Offshore Tax
29 586
25 643
8 977
7 787
14 793
12 822
Previous years' adjustment
1 367
557
Deferred tax
1 125
(981)
This year’s tax cost
26 262
20 184
Instalments of income taxes paid
(8 664)
(7 176)
1 140
266
16 246
13 699
Million NOK
The basis for the current tax provisions is calculated as follows:
Onshore income
Corporate Tax 28% Special Revenue Tax 50%
Other payable taxes related to previous years Total taxes payable in the balance sheet
23
09
income taxes (Continued)
2011
2010
29 718
29 035
Pensions
(636)
(554)
Other
3 091
(143)
(9 506)
(7 832)
Basis for deferred ordinary taxes
22 667
20 506
Deferred Uplift
(3 544)
(3 181)
Onshore assets
(1 144)
(345)
17 979
16 980
6 347
5 742
Million NOK
Deferred tax liabilities are provided on all temporary differences between the financial reporting basis and the tax basis of the Companys assets and liabilities :
Property, plant and equipment
Provision for well plugging and decommissioning
Basis for deferred special taxes Deferred tax:
Corporate Tax 28% Special Revenue Tax 50%
8 991
8 490
Deferred tax liabilities
15 337
14 232
Change in deferred tax
1 125
(981)
Tax Proof:
Income before taxes
35 971
29 539
Marginal tax rate 78%
28 057
23 040
- Permanent and other differences*
(2 032)
(4 283)
- Earned uplift
(1 352)
(1 014)
1 589
2 440
26 262
20 184
Tax effect of:
- Previous years' adjustment This years tax cost * Mainly related to the disposal of Gassled in 2011 and Valhall/Hod in 2010.
24
10
Intangible assets, property, plant and equipment Prod. inst. Machinery & completed equipment
Million NOK
At cost 01.01.11
Buildings
ConstrucTion Explo wells Licence in progress in progress acquisitions
128 475
491
543
1 969
5 085
35
22
511
0
0
(10 835)
(106)
(237)
(240)
123 235
421
328
5 573
Accumulated depreciation
82 047
358
93
0
Book value at 31.12.11
41 188
62
235
5 573
Addition Transfers Retirements and sales Accumulated investments at 31.12.11
2011 depreciation
5 635
Total all assets
4 254
3 829
139 561
3 872
1 391
6
10 410
(28)
(483)
0
0
(20)
2
(11 436)
5 142
3 836
138 535
3 060
3 042
88 601
2 081
794
49 933
412
6 365
28
11
-
280
10-20 years
30-50 years
Evaluation
Evaluation
Decl bal
Decl bal
-
-
Unit-of-prod
Registered Office
Ownership interest
Voting interest
Equity 31.12.2010
Profit (loss) 2010
Book value
TOTAL Etzel Gaslager GmbH
Düsseldorf
100.00%
100.00%
12 722
1 279
8 736
TOTAL Gass Handel Norge AS
Stavanger
100.00%
100.00%
7 458
73
300
Sola
34.93%
34.93%
66 763
235 314
178 347
Estimated useful life of assets Depreciation plan
11
Unit-of-prod
Shares
All amounts in thousand NOK
Shares in subsidiaries and associated companies:
Norpipe Oil AS Total subsidiaries and associated companies
187 383
Shares in Other companies:
Gasnor ASA Kunnskapsparken Nord AS Other Total other companies
7.40%
4 637
11.75%
8 002 5 12 644
25
12
Transaction and current balances with group companies
Total E&P Norge AS have different transactions with Group companies. All the transactions are part of the normal business and with arm’s-length prices. The major transactions in 2011 are: Type
Million NOK
Sales
Costs
Group companies
Total S.A.
Services
Total International Ltd
Sale of oil
32 392
Total Gas & Power Ltd
Sale of gas
4 944
Total Oil Trading SA
Sale of LPG
1 724
468
2011
2010
Intercompany customers
2 793
3 201
Total
2 793
3 201
398
-
Million NOK
Receivables
Payables
Overdraft facilities with associated finance company Intercompany accounts payable Total
40
141
438
141
Unused short-term overdraft facilities with an associated finance company were NOK 602 million at year end 2011. Interest rates are dependant on currency and based on interbank offered rates.
13
Equity
Million NOK
Equity at 31.12.10
Share capital
Share premium
Retained earnings
total
4 201
2 340
48
6 589
Net income Dividend Equity at 31.12.11
4 201
2 340
At 31.12.11, Total E&P Norge AS was a wholly owned subsidiary of Total Holdings Europe S.A., a company in the TOTAL Group. The consolidated accounts of TOTAL S.A. are available on www.TOTAL.com.
26
9 709
9 709
(9 600)
(9 600)
157
6 698
14
Long-term debt
As of 31 December 2011, the Company had unused long-term credit facilities arranged with an associated finance company
15
with a total amount of NOK 4 000 million. The lending interest is based on market rate.
Contingent Liabilities
DISMANTLEMENT CONTINGENCIES. Under the terms of the oil and gas licences, the State may require full or partial dismantlement and removal of offshore oil and gas installations, or assume ownership at no charge when production finally ceases or upon the expiration of the licences, and also if the licence is surrendered or recalled. In the event of take over, the State will assume responsibility for dismantlement and removal of installations. If the Storting should require dismantlement and removal of the installations, removal costs will be fully tax deductible for the licensees.
The Company has also entered into two lease contracts for rental of two LNG carrier vessels (charter parties) for the transportation of LNG production share of the Snøhvit field. The commencement dates of these contracts are 2006 (ending 2018) and 2018 respectively. In addition Total have contracted one more LNG vessel until 4th quarter 2030. As a partner in the fields under development and operation, the Company has leasing agreements for drilling rigs, helicopters, storage vessels and other vessels. Total future leasing costs for Total E&P Norge AS are NOK 12 303 million.
EQUIPMENT LEASES. As operator, the Company have equipment lease rental obligations covering such operations as drilling rigs and other equipment. The duration periods of these lease agreements are from 1 to 2 years. The rental periods of offices and warehouse buildings have a duration of 3 to 11 years.
DRILLING COMMITMENTS. Under the terms of the licence agreements, the Company is committed to participate in the drilling of 6 exploration wells, of which 1 as operator and 5 as licensee.
Million NOK
1 year
2–3 years
4–5 years
> 2015
Leasing agreements
2 979
3 182
2 109
4 033
16
Oil and Gas Reserves (not audited)
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)’s final rule “Modernization of Oil and Gas Reporting” issued on 31 December 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. Oil and gas reserves are assessed annually, taking into account, among other factors, levels of production, field reassessment, additional reserves from discoveries and acquisitions, disposal of reserves and other economic factors. This process involves making subjective judgements. Consequently, estimates of reserves are not exact measurements
Reserves at 31.12.2011
Proven, developed and undeveloped reserves
and are subject to revision under well-established control procedures. The estimation of reserves is an ongoing process which is done within Total E&P Norge by experienced geoscientists, engineers and economists under the supervision of the Company’s General Management. Persons involved in reserve evaluation are trained to follow SEC-compliant internal guidelines and policies regarding criteria that must be met before reserves can be considered as proved. The estimation of proved reserves is controlled by the Group through established validation guidelines. For further description of the Group’s internal control process, please refer to the Reference Document issued by TOTAL S.A. and available at www.total.com.
Oil, NGL and Condensate (million bbl)
Natural Gas (billion Sm3)
Oil Equivalents (million bbl)
520
82
1 057
27
17
28
Licence portfolio at 31.12.2011
Licence
Block
Field
PL 006
2/5
Tor
Own share
Valid to
100.00%
31.12.2028
Operator
Total E&P Norge AS
PL 018
2/4, 2/7, 7/11
Ekofisk area
39.90%
31.12.2028
ConocoPhillips
PL 018B
2/5
Albuskjell
39.90%
31.12.2028
ConocoPhillips
PL 024
25/1
Frigg
47.13%
23.05.2015
Total E&P Norge AS
PL 026
25/2
Rind
62.13%
23.05.2015
Total E&P Norge AS
PL 034
30/05
Tune
10.00%
14.11.2015
Statoil Petroleum AS
PL 036
25/4
Vale
24.24%
11.06.2021
Statoil Petroleum AS
PL 036BS
25/4
Heimdal
16.76%
11.06.2021
Statoil Petroleum AS
PL 036D
25/4
Vilje
24.24%
11.06.2021
Statoil Petroleum AS
PL 040
29/9, 30/7
Hild
51.00%
31.12.2027
Total E&P Norge AS
PL 043
29/6, 30/4
Hild
51.00%
31.12.2027
Total E&P Norge AS
PL 043BS
29/6, 30/4 (Islay carve-out)
Hild
51.00%
31.12.2027
Total E&P Norge AS
PL 043CS
29/6 (Islay carve-out)
Islay
100.00%
31.12.2027
Total E&P Norge AS
PL 043DS
29/6 (Islay carve-out)
Islay
100.00%
31.12.2027
Total E&P Norge AS
PL 044
1/9
Tommeliten
15.00%
31.12.2028
ConocoPhillips
PL 046
15/8, 15/9
Sleipner
10.00%
31.12.2028
Statoil Petroleum AS
PL 046B
15/9
Volve
10.00%
31.12.2028
Statoil Petroleum AS
PL 046C
15/9
’H’ discovery
10.00%
31.12.2028
Statoil Petroleum AS
PL 048
15/5
Dagny
21.80%
31.12.2028
Statoil Petroleum AS
PL 048B
15/5
Glitne
21.80%
18.02.2013
Statoil Petroleum AS
PL 048E
15/6
Eirin
21.80%
31.12.2028
Statoil Petroleum AS
PL 051
30/2, 30/3
Huldra
24.50%
06.04.2015
Statoil Petroleum AS Statoil Petroleum AS
PL 052B
30/3
Huldra
18.00%
06.04.2015
PL 053
30/6
Oseberg Øst
10.00%
01.03.2031
Statoil Petroleum AS
PL 054
31/2
Troll
3.69%
30.09.2030
Statoil Petroleum AS
PL 055C
31/4
Oseberg Øst
10.00%
01.03.2031
Statoil Petroleum AS
PL 062
6507/11
Åsgard
24.50%
10.04.2027
Statoil Petroleum AS
PL 064
7120/08
Snøhvit
5.00%
01.10.2035
Statoil Petroleum AS
PL 072C
16/7
Beta & Theta NE
10.00%
31.12.2028
Statoil Petroleum AS
PL 073
6407/01
Tyrihans
29.14%
31.12.2029
Statoil Petroleum AS
PL 073B
6406/03
Tyrihans
26.67%
31.12.2029
Statoil Petroleum AS
PL 077
7120/7
Snøhvit
10.00%
01.10.2035
Statoil Petroleum AS
PL 078
7120/9
Snøhvit
25.00%
10.10.2035
Statoil Petroleum AS
PL 079
30/9
Oseberg Sør
10.00%
01.03.2031
Statoil Petroleum AS
PL 085
31/3, 31/5, 31/6
Troll
3.69%
30.09.2030
Statoil Petroleum AS
PL 085B
31/9, 32/4
Troll
3.00%
08.07.2030
Statoil Petroleum AS
PL 085C
31/3, 31/6
Troll
3.69%
30.09.2030
Statoil Petroleum AS
PL 089
34/7
Snorre, Vigdis, Tordis, Statfjord Øst
5.60%
09.03.2024
Statoil Petroleum AS
PL 092
6407/6
Mikkel
7.65%
09.03.2020
Statoil Petroleum AS
PL 094
6506/12
Åsgard
9.80%
10.04.2027
Statoil Petroleum AS
PL 094B
6406/3
Åsgard
7.68%
10.04.2027
Statoil Petroleum AS
17
Licence portfolio at 31.12.2011
Licence
Block
Field
PL 099
7121/4
Snøhvit
Own share
Valid to
37.50%
01.10.2035
Operator
Statoil Petroleum AS
PL 100
7121/7
Albatross
35.00%
01.10.2035
Statoil Petroleum AS
PL 102
25/5
Skirne & Byggve
40.00%
01.03.2025
Total E&P Norge AS
PL 102C
25/5
Atla
40.00%
01.03.2025
Total E&P Norge AS
PL 104
30/9
Oseberg Sør
10.00%
01.03.2031
Statoil Petroleum AS
PL 110
7120/5, 7121/5, 7121/5
Snøhvit
25.00%
01.10.2035
Statoil Petroleum AS
PL 110B
7121/6, 8&9, 7122/4, 5&6
Tornerose
18.40%
17.12.2010
Statoil Petroleum AS
PL 110C
7123/4
Snøhvit
18.40%
17.12.2010
Statoil Petroleum AS
PL 120
34/7, 34/8
Visund
11.00%
23.08.2023
Statoil Petroleum AS
PL 120B
34/7, 34/8
Gimle
11.00%
06.10.2007
Statoil Petroleum AS
PL 121
6407/5
Mikkel
7.65%
28.02.2022
Statoil Petroleum AS
PL 127
6607/12
Alve North
50.00%
28.02.2023
Total E&P Norge AS
PL 134
6506/11
Åsgard
10.00%
10.04.2027
Statoil Petroleum AS Statoil Petroleum AS
PL 134B
6506/11
Kristin & Morvin
6.00%
10.04.2027
PL 134C
6506/11
Morvin
6.00%
06.01.2009
Statoil Petroleum AS
PL 146
2/4
22.20%
08.07.2027
Statoil Petroleum AS
PL 171B
30/12
Oseberg Sør
10.00%
01.03.2031
Statoil Petroleum AS
PL 190
30/8
Tune
10.00%
10.09.2032
Statoil Petroleum AS
PL 193
34/11
Kvitebjørn
5.00%
10.09.2031
Statoil Petroleum AS Statoil Petroleum AS
PL 193C
34/11
Kvitebjørn ext.
5.00%
04.02.2012
PL 199
6406/2
Kristin
6.00%
10.09.2033
Statoil Petroleum AS
PL 211
6506/6, 6507/4
Victoria
40.00%
02.02.2032
Total E&P Norge AS
Victoria ext.
40.00%
16.02.2010
Total E&P Norge AS
15.00%
02.02.2010
Statoil Petroleum AS
7.68%
10.04.2027
Statoil Petroleum AS
PL 211B
6506/9, 6507/7
PL 219
6710/06
PL 237
6407/03
Åsgard Vale
PL 249
25/5
PL 255
6406/5, 6406/6, 6406/9
PL 257
6406/1, 6406/5
PL 263C
6507/11
PL 275
2/4
PL 303B
15/6
Yttergryta ext.
Statoil Petroleum AS
Beta & Theta NE
10.00%
12.12.2012
Statoil Petroleum AS
22.20%
17.12.2009
Statoil Petroleum AS
18.40%
15.06.2013
Statoil Petroleum AS
9.80%
28.02.2013
Statoil Petroleum AS
PL479
6506/9, 6506/12
Smørbukk North
34/6
PL554B
34/9
PL569
16/4
PL574
29/9, 30/7, 30/10
PL585
6406/7, 6406/8
Statoil Petroleum AS ConocoPhillips
Snøhvit
PL554
10.09.2033 12.05.2037
2/4
7019/2, 3, 11&12, 7120/10
6.00%
15.03.2009
7120/7, 7120/8, 7120/9
7225/3, 7226/1
Centrica Shell
24.50%
PL 333
PL535
11.06.2021 12.05.2007
39.90%
PL 448 PL488
24.24% 20.00%
Norvarg
Theta NE
18.40%
01.03.2014
Statoil Petroleum AS
40.00%
15.05.2014
Total E&P Norge AS
40.00%
19.02.2015
Total E&P Norge AS
40.00%
19.02.2015
Total E&P Norge AS
10.00%
04.02.2015
Statoil Petroleum AS
40.00%
04.02.2018
Statoil Petroleum AS
100.00%
04.02.2018
Total E&P Norge AS
29
AudiTOR’S REPORT
Report on the financial statements
We have audited the accompanying financial statements of Total E&P Norge AS, which comprise the balance sheet as at 31 December 2011, the statements of income and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.
The Board of Directors’ and Chief Executive Officer’s responsibility for the financial statements. The Board of Directors and Chief Executive Officer are responsible for the preparation and fair presentation of these financial statements in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for such internal control as the Board of Directors and Chief Executive Officer determine is necessary to enable the preparation of financial statements that are free fro material misstatement, whether due to fraud or error.
Auditor’s responsibility. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with laws, regulation, and auditing standards and practices generally accepted in Norway, including International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
Design: Photo: Woldcam /Total E&P Norge (page 4 and 6), Tom Haga (page 5) and Total E&P Norge (page 7). Paper: Arctic Volume High White (150/250g) Circulation: 400 (English) / 600 (Norwegian) Print: HBO AS
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, ass well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion. In our opinion, the financial statements of Total E&P Norge AS have been prepared in accordance with laws and regulations and present fairly, in all material respects, the financial position of the Company as of 31 December 2011 and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway. Report on other legal and regulatory requirements.
Report on other legal and regulatory requirements
Opinion of the Board of Directors’ report. Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Directors’ report concerning the financial statements, the going concern assumption and the proposal for the allocation of the result is consistent with the financial statements and complies with the law and regulations.
Opinion on registration and documentation. Based on our audit of the financial statements as descried above, and control procedures we have considered necessary in accordance with the international standard on assurance engagements (ISAE) 3000, “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”, it is our opinion that the Board of Directors and Chief Executive Officer have fulfilled their duty to properly record and document the Company’s accounting information as required by law and generally accepted bookkeeping practice in Norway. Stavanger, 7 March 2012 ERNST & YOUNG AS Jostein Johannessen State Authorised Public Accountant (This translation from Norwegian has been made for information purposes only.)
organisation
MANAgEMENT
Managing Director
Deputy Managing Director
Martin Tiffen
Gunnar Wilhelm Syslak
hsEq
ExTERNAl AFFAIRs
FINANcE/TAx/IT
huM. REs. & AdM.
lEgAl
NEw REsERvEs gRowTh
Bjørn Oscar Tveterås
Bjørn Arne Næsgaard
catherine van der linden
Sigmund Pettersen
Arild Kvanvik Jørgensen
Jean-Paul Thiriet
gEoscIENcEs
dEvElopMENT studies & plANNINg
hIld pRojEcT
opERATIoNs & pRojEcTs
coMMERcIAl
Bu gREATER EkoFIsk
Bu sTAToIl opERATEd
Marketing & TRANspoRTATIoN
Rune Rosnes Hope
per grinde
foudil cheglibi
Tore Bø
Jarle Madsen
John Catlow
Martin Borthne
Kristin Skofteland
our interests on the Norwegian Continental Shelf
STaToil
STaToil
100.00*
6.00
5.00
7.65
iSlay
KriSTiN
KViTEbJØrN
MiKKEl
STaToil
ToTal E&P NorgE
10.00
10.00
40.00
10.00
oSEbErg EaST
oSEbErg SouTH
SKirNE
SlEiPNEr EaST
ToTal E&P NorgE oPerated fields
ToTal E&P NorgE Partner oPerated fields
ToTal E&P NorgE oPerated licences
STaToil
STaToil
STaToil
6.00
10.00
MorViN
oSEbErg
STaToil
STaToil
ToTal E&P NorgE
STaToil
STaToil
16.76
24.33
Huldra
STaToil
STaToil
STaToil
CoNoCoPHilliPS
CoNoCoPHilliPS
CoNoCoPHilliPS
oPerator
HEiMdal
21.80
10.00
4.90
giMlE
gugNE
39.90
EMbla
gliTNE
39.90
EldfiSK
*norwegian share (5.51% of the total field)
• • • • • • • • • • • • • • • • • •
39.90
share (%)
EKofiSK
fields in Production
aT 01.05.2012
• • • • • • • • • • • • • • •
•
ÅSgard
yTTErgryTa
ViSuNd
VilJE
VigdiS
ValE
TyriHaNS
TuNE
Troll
TordiS
Tor
SygNa
7.68
24.50
7.70
24.24
5.60
24.24
23.18
10.00
3.69
5.60
48.20
2.52
2.80
18.40
6.18
9.41
share (%)
alve nord (Pl127)
STaToil
STaToil
STaToil
STaToil
STaToil
STaToil
STaToil
STaToil
STaToil
STaToil
CoNoCoPHilliPS
STaToil
STaToil
STaToil
STaToil
STaToil
oPerator
victoria (Pl211)
norwegian sea
STaTfJord EaST
SNØHViT
SNorrE
alPHa NorTH
SlEiPNEr WEST/
fields in Production
total e&P norge ownershiP in Production fields and main oPerated Production licences on the ncs
harstad
tromsø
snøhvit
hammerfest
barents sea
norvarg (Pl535)
*formerly hild
aberdeen
st. fergus
vale
ekofisk
troll
Pl627
atla
oseberg
eldfisk embla
tor
north sea
skirne
tune
gimle
Pl554 & 554b
kvitebjørn
visund
huldra
heimdal
Pl618/619
sleiPner
glitne
vilje
islay
martin linge*
sygna
statfjord øst
tordis
vigdis
snorre
stavanger
bergen
Pl585
kristin
morvin yttergryta
mikkel
tyrihans
åsgard
oslo
trondheim
*frostpipe is no longer in operation, but is kept
8.65439 5.00000
VESTProSESS (MoNgSTad)
1.07910
10.00000
STurE (STurE)
oil
ETzEl gaS lagEr (ETzEl)
gas
Plants / terminals
SlEiPNEr CoNdENSaTE
3.70687
3.70687
Troll oil i Troll oil ii
36.25000
8.65439
34.93000
share (%)
froSTPiPE*
oSEbErg TraNSPorT (oTS)
NorPiPE (oil)
oil
PiPelines
total e&P norge ownershiP (not shown on map)
STaToil
STaToil
STaToil
STaToil
STaToil
STaToil
ToTal E&P NorgE
STaToil
CoNoCoPHilliPS
oPerator
www.total.no
s tavanger (main office)
OSLO
Harstad
T OTAL E&P NORGE AS
T OTAL E&P NORGE AS
T OTAL E&P NORGE AS
Post address P.O. box 168 N- 4001 Stavanger
Post address P.O. box 1361, Vika N-0113 Oslo
Post address P.O. box 63 N-9481 Harstad
Visiting address Finnestadveien 44, Dusavik N- 4029 Stavanger
Visiting address Haakon VIIs gate 1 N-0161 Oslo
Visiting address Torvet 2 N-9405 Harstad
Telephone +47 22 01 95 00
Telephone +47 77 28 21 50
Telephone +47 51 50 30 00