10th May 2005 15:36
Total S.A.10 May 2005 Canada : Total Increases its share in the Surmont oil sands leases to 50 % Paris, May 10, 2005 - Total announces the purchase of an additional 6.5% stakein the Canadian Surmont leases. With the completion of this transaction Totalwill have a 50% stake alongside ConocoPhillips (operator). The Surmont oil sandsproject is in the Athabasca oil sands area, 60 kilometres southeast of FortMcMurray, Alberta, Canada. The first phase of production will start in 2006 and reach 27,000 barrels perday of bitumen. This represents an important milestone in the development of thetotality of Surmont reserves. Phase 2, which would involve the expansion ofplateau production to 100,000 barrels per day by 2012, has been approved by theauthorities of Alberta and is currently under study Further phases are targetedto take the production to a significantly higher level, depending on the resultsof the ongoing appraisal of the leases. The Surmont oil sands project uses Steam Assisted Gravity Drainage (SAGD), amethod that involves the injection of steam deep into the oil sands. The steammelts the bitumen, which is then recovered in its liquid state and pumped to thesurface for further processing. Total has extensive experience in producing heavy oils, notably in Venezuelawhere it is the majority shareholder in the Sincor project operating company,one of the largest extra-heavy oil recovery projects in the world. Innovativeproduction technologies acquired through extensive research and development willallow Total to significantly expand its activities in Canada. * * * * * Total is the fourth largest oil and gas company in the world with operations inmore than 130 countries. Total's activities cover the whole energy chain of thepetroleum industry: exploration, oil and gas production, refining and marketing,trading and power generation. The Group is also a major player in chemicals.Total has more than 111,000 employees worldwide. More information can be foundon the company's website: www.total.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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