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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

1  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


Total E&P Norge, Annual Report 2011