For the full year 2014, average daily oil and gas production was 2,146 kboe / d compared to 2,299 kboe / d in 2013 and 2,300 kboe / d in 2012. Liquids accounted for approximately 48% and natural gas for approximately 52% of TOTAL’s combined liquids and natural gas production in 2014.
The tables on the next pages set forth by geographic area TOTAL’s annual and average daily production of liquids and natural gas for each of the last three years.
Consistent with industry practice, TOTAL often holds a percentage interest in its fields rather than a 100% interest, with the balance being held by joint venture partners (which may include other international oil companies, state-owned oil companies or government entities). TOTAL’s entities frequently act as operator (the party responsible for technical production) on acreage in which it holds an interest. See the table “Presentation of production activities by geographic area” on the following pages for a description of TOTAL’s producing assets. As in 2013 and 2012, substantially all of the liquids production from TOTAL’s Upstream segment in 2014 was marketed by the Trading & Shipping division of TOTAL’s Refining & Chemicals segment (see table “Trading’s crude oil sales and supply and refined products sales” in paragraph 3.2.1. of this chapter).
The majority of TOTAL’s natural gas production is sold under long-term contracts. However, its North American production, and part of its production from the United Kingdom, Norway and Argentina, is sold on the spot market. The long-term contracts under which TOTAL sells its natural gas usually provide for a price related to, among other factors, average crude oil and other petroleum product prices, as well as, in some cases, a cost-of-living index. Though the price of natural gas tends to fluctuate in line with crude oil prices, a slight delay may occur before changes in crude oil prices are reflected in long-term natural gas prices. Due to the interaction between the contract price of natural gas and crude oil prices, contract prices are not usually affected by short-term market fluctuations in the spot price of natural gas.
Some of TOTAL’s long-term contracts, notably in Indonesia, Nigeria, Norway, Qatar Thailand and Yemen, specify the delivery of quantities of natural gas that may or may not be fixed and determinable. Such delivery commitments vary substantially, both in duration and in scope, from contract to contract throughout the world. For example, in some cases, contracts require delivery of natural gas on an as-needed basis, and, in other cases, contracts call for the delivery of varied amounts of natural gas over different periods of time. Nevertheless, TOTAL estimates the fixed and determinable quantity of gas to be delivered over the period 2015-2017 to be 3,782 Bcf. The Group expects to satisfy most of these obligations through the production of its proved reserves of natural gas, with, if needed, additional sourcing from spot market purchases (see chapter 11, “Supplemental Oil and Gas Information (Unaudited)” of this Registration Document).