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Financial Transparency
Example of Total in Indonesia
The contractual framework of Total’s activities in Indonesia
TOTAL EXPLORATION and PRODUCTION INDONESIE (TEPI) is one of the Group’s largest
exploration and production subsidiaries and the largest operator in Indonesia in terms of production.
In 2013 TEPI production of 131 kboe/d was the seventh largest contributor to the Group’s Production,
representing nearly 6% of the total. This production comes almost entirely from the Mahakam PSC area.
Licenses portfolio of TOTAL in Indonesia as of December 31, 2013
License
Type of Contract
Total's Role
Interest (%)
Entry Date
Bengkulu-I Mentawai
PSC
Operator
100.0
09/11/2012
Telen
PSC
Operator
100.0
09/11/2012
Mahakam
PSC
Operator
50.0
31/03/1997
South East Mahakam
PSC
Operator
50.0
21/03/2007
Tengah
PSC
Operator
22.5
05/10/1988
South West Bird's Head
PSC
Operator
90.0
01/05/2011
Nilam and Badak Units
PSC
Partner
various
various
Arafura Sea
PSC
Partner
24.5
21/12/2009
Amborip VI
PSC
Partner
24.5
21/12/2009
Sebuku
PSC
Partner
15.0
30/04/2010
GMB Kutai Timur
PSC
Partner
50.0
01/04/2011
GMB Kutai II
PSC
Partner
18.4
10/12/2012
Sadang
PSC
Partner
30.0
03/05/2011
Sageri
PSC
Partner
50.0
03/05/2011
South Sageri
PSC
Partner
100.0
03/05/2011
South Mandar
PSC
Partner
49.3
31/08/2011
Financial Transparency
Example of Total in Indonesia
Total’s production and projects in Indonesia (1)
Year
2011
Total’s SEC* Production
Total
Liquids
kboe/d
kb/d
158
18
Natural gas
Mcf/d
757
2012
132
16
605
2013
131
17
605
* SEC : Securities and Exchange Commission
In Indonesia, where TOTAL has had operations since 1968, the Group’s production in 2013 was 131
kboe/d compared to 132 kboe/d in 2012 and 158 kboe/d in 2011. TOTAL’s operations in Indonesia are
primarily concentrated on the Mahakam permit (50%, operator), which covers in particular the Peciko
and Tunu gas fields. TOTAL also has a stake in the Sisi-Nubi gas field (47.9%, operator). The Group
delivers most of its natural gas production to the Bontang LNG plant. The overall capacity of the eight
liquefaction trains at this plant is 22 Mt/y.
In 2013, TOTAL’s gas production operations amounted to 1,757 Mcf/d. This value is down from the
2012 production level (1,871 Mcf/d) due to the maturity of most of the fields on the Mahakam permit,
even though this decline was partially offset in 2013 by an increase in production in the South
Mahakam fields. The gas operated and delivered by TOTAL accounted for approximately 80% of
(1)
The information stated in above paragraph is extracted from 2013 Registration Document submitted to the Financial Market Authority (AMF)
on the 27th of March 2014.
Financial Transparency
Example of Total in Indonesia
Bontang’s LNG supply. This gas production is supplemented by condensate and oil production from the
Handil and Bekapai fields, which are operated by the Group.
– With regard to the Mahakam permit:
- On the Tunu field, in 2013, additional development wells were drilled in the main reservoir as well as
in the shallow gas reservoirs.
- On the Peciko field, Phase 7 drilling, which started in 2009, is continuing.
- On South Mahakam, where production started in 2012 and which contains the Stupa, West Stupa
and East Mandu condensate gas fields, other development wells are currently being drilled.
- On the Sisi-Nubi field, which began production in 2007, drilling operations are continuing within the
framework of a second phase of development. The gas from Sisi-Nubi is produced through Tunu’s
processing facilities.
– On the Sebuku license (15%), production started at the Ruby gas field in October 2013. Production
capacity is estimated at 100 Mcf/d. Ruby’s production is transported by pipeline for processing and
separation at the Senipah terminal operated by TOTAL.
– On the Sageri exploration Block (50%), the first exploration well (Lempuk-1X), completed in early
2012, produced negative results. The license is currently being relinquished.
– On the South East Mahakam exploration Block (50%, operator), the Tongkol South-1 exploration well,
completed in September 2013, produced negative results.
– In 2013, TOTAL took the necessary steps vis-à-vis the authorities to withdraw from the Sadang (30%),
Arafura Sea (24.5%) and Amborip VI (24.5%) Blocks. In addition, and following the withdrawal of the
other partners, the Group’s stake in the South Sageri Block increased from 45% to 100% (operator),
while its share in the South Mandar Block increased from 33% to 49.3%.
– In February 2013, TOTAL sold 10% in the South West Bird’s Head exploration Block (90%, operator).
This block is located onshore and offshore in the Salawati basin in the province of West Papua.
Results from the Anggrek Hitam 1 exploration well, where drilling was completed in September 2013,
were negative.
– In 2012, TOTAL acquired a 100% stake in the exploration Block Bengkulu I – Mentawai in the
offshore Bengkulu basin, southwest of Sumatra. The preparatory work on the Rendang 1 exploration
well started at the end of 2013 and drilling start-up is planned in July 2014. The Group also acquired a
stake in the exploration Block Telen (100%, operator) in the offshore Kutai basin in East Kalimantan
province.
– In 2011, the Group acquired an 18.4% stake in a coal bed methane (CBM) block on Kutai II in East
Kalimantan province as well as a 50% stake in the similar Kutai Timur Block.
Taxes
In 2013, TEPI paid to the State, 973 million dollars in Corporate Tax and Dividend Tax compared to
1,082 million dollars in 2012.
The State also receives a share of hydrocarbon production under the Mahakam Production Sharing
Contract. As such, in 2013, TEPI remitted to the State 7.9 Mb of oil (including 0.9 Mb under the
Domestic Market Obligation) and 105.2 Bcf of gas.
EITI (Extractive Industries Transparency Initiative) in Indonesia
In 2009 the Government of Indonesia announced its intention to work towards EITI compliance and to
make an application to become an EITI candidate.
The Presidential Regulation no. 26/2010 was signed into force on April 23, 2010 setting a clear path for
Financial Transparency
Example of Total in Indonesia
Indonesia’s implementation of EITI.
On October 19, 2010, Indonesia was admitted as an EITI candidate country and published a first EITI
report on April 23, 2013 covering the financial year 2009. A second report EITI covering financial years
2010-2011 was in June 2014.
The multi-stakeholder Group (MSG), which includes government, civil society and industry
representatives, has not yet produced a revised workplan for 2014 in accordance with the EITI
Standard.
Indonesia submitted a final validation report in July 2013. On October 17, 2013, the EITI Board
concluded that Indonesia has made meaningful progress in implementing the EITI.