TOTAL’s Upstream segment includes the activities of Exploration & Production and Gas & Power(1). The Group has exploration and production activities in more than fifty countries and produces oil or gas in approximately thirty countries. Gas & Power conducts activities downstream from production related to natural gas, liquefied natural gas (LNG) and Liquefied Petroleum Gas (LPG), as well as power generation and trading, and other activities.
- 2.1 Mboe/d of hydrocarbons produced in 2014
- 11.5 Bboe of proved reserves as of December 31, 2014 (2)
- €26.5 billion invested in 2014
- 17,268 employees present
Upstream segment financial data
Adjusted net operating income from the Upstream segment in 2014 was $10,504 million compared to $12,450 million in 2013, a decrease of 16% which was due essentially to the decrease in the average realized price of hydrocarbons. The effective tax rate for the Upstream segment was 57.1% in 2014 compared to 60.0% in 2013.
The Return on Average Capital Employed (ROACE(6)) for the Upstream segment was 10.7% in 2014 compared with 13.8% in 2013.
TOTAL’s average liquids price decreased by 13% in 2014 compared to 2013 and average gas price increased by 8% in 2014 compared to 2013.
In 2014, hydrocarbon production was 2,146 kboe / d, a decrease of 7% compared to 2013, due to the following:
- -6% essentially for the expiration of the ADCO license in the United Arab Emirates;
- -2% essentially for normal decline and higher maintenance in 2014
- notably in the first half, partially offset by production growth in the Utica in the United States; and
- +1% for production growth from start-ups, essentially CLOV in Angola.
Proved reserves based on SEC rules (based on Brent at 101.3 $ / b) were 11,523 Mboe at December 31, 2014.
Based on the 2014 average rate of production, the reserve life is more than thirteen years. The 2014 proved reserve replacement rate(7), based on SEC rules, was 100%. The 2014 organic proved reserve replacement rate(8) was 125% in a constant price environment.
At year-end 2014, TOTAL had a solid and diversified portfolio of proved and probable reserves(9) representing more than twenty years of reserve life based on the 2014 average production rate, and resources(10) representing about fifty years of production.
(1) Effective July 1, 2012, the Upstream segment no longer includes the activities of New Energies, which are now reported with Marketing & Services. As a result, certain information has been restated according to the new organization.
(2) Based on a Brent crude price of $101.3 / b (Reference price in 2014), according to rules established by the Securities and Exchange Commission (refer to the point 2.1.3.).
(3) (Production costs + exploration expenses + depreciation, depletion and amortization and valuation allowances) / production of the year.
(4) FASB Accounting Standards Codification 932, Extractive industries – Oil and Gas.
(5) Excluding IAS 36 (impairment of assets).
(6) Calculated based on adjusted net operating income and average capital employed, using replacement cost.
(7) Change in reserves excluding production (revisions + discoveries, extensions + acquisitions – divestments) / production for the period.
(8) The reserve replacement rate in constant environment of 108.02 $ / b oil price, excluding acquisitions and divestments.
(9) Limited to proved and probable reserves covered by Exploration & Production contracts on fields that have been drilled and for which technical studies have demonstrated economic development in a 100 $ / b Brent environment, including projects developed by mining.
(10) Proved and probable reserves plus contingent resources (potential average recoverable reserves from known accumulations – Society of Petroleum Engineers – 03 / 07).