TOTAL: Yemen LNG Starts Production

Thu Oct 15, 2009 10:00am EDT
 
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PARIS--(Business Wire)--
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). 

******* 

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

TOTAL 

Copyright Business Wire 2009

 

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