Total (Paris:FP) (LSE:TTA) (NYSE:TOT) announces that the Yemen
LNG liquefaction plant started producing Liquefied Natural Gas
(LNG) on October 15, 2009. Total is lead shareholder of Yemen LNG
and holds a 39.62% interest, alongside the state-owned company
Yemen Gas Company (16.73%), Hunt Oil Company (17.22%), SK Energy
(9.55%), Korea Gas Corporation (6%), Hyundai Corporation (5.88%),
and GASSP1 (5%).
The Yemen LNG project, which will have required an overall USD
4.5 billions investment, is the most important investment ever made
in Yemen. It consists in supplying gas from Block 18, located in
the Marib region in central Yemen, through a 320 kilometres
dedicated pipeline to the LNG plant located at the port of Balhaf
on the southern coast of the country. The plant started production
with the first train while the construction of the second train is
being completed. Total production capacity will reach 6.7 millions
tons of LNG per year (Mt/y).
Following the three gas sales agreements signed in 2005 with
Kogas, GDF-Suez and Total Gas & Power Ltd., LNG from Yemen LNG
will be exported to both the Asian and Atlantic markets.
"The production start of Yemen LNG is the successful outcome of
a cooperation between Total and its partners over the last decade.
Since Yemen's gas potential was discovered, Total has supported
Yemen in developing its gas industry and in becoming an LNG
exporter", declared Yves-Louis Darricarrère, President of Total
Exploration & Production. "Yemen LNG is also an important
milestone in the fulfilment of Total's objective to reinforce the
Group's position as a leading LNG producer."
Yemen LNG's first cargo is scheduled in the coming weeks.
About the people
During its construction, Yemen LNG supported the local economy
by sourcing several thousands jobs amongst the local population. To
ensure the employees and contractors' safety, a special focus was
applied to training on the site and strict appliance of
procedures.
Total and its partners selected and trained the technical and
administrative teams in charge of managing Yemen LNG, a company
with 700 employees. Through a three year specific training program
at both Sana'a and Balhaf, skills are already being transferred to
Yemeni employees. In the future, about 90% of Yemen LNG employees
will be Yemeni professionals working in all different fields:
operations, administration, support, management.
Total in Yemen
Total has been present in Yemen since 1987. The current
production operated by the Group amounts to 56,000 barrels per day.
Total holds interests in the two main oil basins, as the operator
on Block 10 (Masila Basin, East Shabwa permit, 28.57%) and as a
partner on Block 5 (Marib Basin, Jannah permit, 15%).
Total strengthened its position in onshore exploration through
the acquisition of a 30.9% interest in Block 70 in 2008 following
the purchase of a 40% share in Blocks 69 and 71 in 2007.
Total and LNG
Total is a leading producer in the LNG sector, with strong and
diversified positions worldwide. Total is active in most of the
major LNG - producing regions and main LNG markets and continues to
develop LNG as a key component of its development strategy.
The Group produces LNG in Indonesia, Qatar, the United Arab
Emirates, Oman, Nigeria and Norway. The start up of Yemen LNG and
Qatargas 2 Train B will increase Total's LNG production by close to
40% in 2010. Angola LNG, which is currently under construction,
will complement this portfolio in 2012.
New liquefaction projects are currently being studied, including
Shtokman in Russia in partnership with Gazprom and Ichthys in
Australia in partnership with Inpex.
The Group also secured long-term access to LNG re-gasification
capacity located in key LNG markets: North America (Sabine Pass in
the United States and Altamira in Mexico), Europe (Fos Cavaou in
France and South Hook Terminal in the United Kingdom) and Asia
(Hazira in India).
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Total is one of the world's major oil and gas groups, with
activities in more than 130 countries. Its 97,000 employees put
their expertise to work in every part of the industry - exploration
and production of oil and natural gas, refining and marketing, gas
& power and trading. Total is working to keep the world
supplied with energy, both today and tomorrow. The Group is also a
first rank player in chemicals. www.total.com
1 The Yemen General Authority for Social Security and
Pensions