Total News - 2006

News summaries from company press releases and from unaffiliated news agencies are provided below. The summaries are sorted by month and are further categorized as upstream news, downstream news, and business/finance news.

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January

• Upstream news:

- Total announces the successful production test of the well Jathma-1 in the East Shabwa Development Area, block 10, in Yemen. Jathma-1 is the first of a 3-well exploration program targeting a new prospective area in the northern part of Block 10. It reached a total depth of 3,175 meters and produced over 1,900 barrels of 35 API degrees oil per day when tested.

- Total announces that the Forvie North gas and condensates field has just started production, nine months after official approval of the development plans by the British Authorities. Total owns (100%) and operates the field which is located approximately 440 kilometers north-east of Aberdeen in a water depth of 120 metres. The expected production of Forvie North at plateau is around 20,000 barrels of oil equivalent per day.

- Total announces that its wholly owned subsidiary, Total E&P Norge, has signed a sale and purchase agreement with ExxonMobil Exploration and Production Norway to acquire their entire 30% interest in the PL211 licence. This licence, located in the Norwegian Sea 200 kilometres offshore in water depths of around 400 metres, holds the Victoria discovery.

- Sociedade Nacional de Combustiveis de Angola (Sonangol) and Total announce that the Gengibre-2 appraisal well confirmed the potential of the early 2005 Gengibre-1 discovery well in Block 32 in the Angolan ultra-deep offshore. Located around 2 kilometers from Gengibre-1 in a water depth of 1,697 meters, Gengibre-2 encountered a number of objectives before reaching a total depth of 4,342 meters. During two tests, it flowed at 4,540 barrels of oil per day from a Miocene reservoir and 5,100 barrels of oil per day from an Oligocene reservoir.

- Total announces that the Belize field, part of Angola’s deep offshore BBLT (Benguela-Belize-Lobito-Tomboco) Development, has been brought on stream in Block 14. Located 80 kilometers offshore in nearly 400 meters of water, the BBLT Development, including the first phase of the Belize and Benguela fields, comprises an integrated drilling and production platform hub facility, supported by a Compliant Piled Tower (CPT), with tieback to the Lobito-Tomboco subsea wells. BBLT’s combined production is forecast to peak at 200,000 barrels per day.

• Downstream news:

- Total announces that its first cargo of Liquefied Natural Gas (LNG) from Nigeria LNG (NLNG) train 4 left Bonny Island bound for Spain, as part of the 1.15 million metric tonnes per annum (MTPA) sales and purchase agreement signed between Total Gas & Power Ltd. and NLNG to off take LNG from trains 4, 5 and 6. NLNG’s Train 4 started production in fourth quarter 2005 and Train 5 is currently being prepared to start in February. These two trains will increase NLNG’s production capacity by 8 MTPA to over 17 MTPA. Train 6, currently under construction, will further increase the plant capacity by 4 MTPA.

• Business/Finance news:

- On Tuesday, January 3, 2006, 60 children aged two-and-a-half months to three years old will be brightening up the La Défense business district when they arrive at Total’s Les Petits Bonheurs company day care center. A full-time team of 19 childcare professionals selected by specialized service provider People & Baby will manage the 630-square-meter day care and early learning center and its 200-square-meter playground. In addition to the educational team, a pediatrician will monitor the children’s health, while a psychotherapist will be on hand one half-day a week to help new mothers and fathers adjust to the changes that parenthood brings.

- Total announces the following nominations: • Philippe Armand is appointed General Manager of Total E&P Indonesia in Jakarta • Philippe Chalon is appointed Senior Vice President Finance Economics Information Systems • Charles Mattenet is appointed Senior Vice President Asia & Far East • Patrick Pouyanné is appointed Senior Vice President Strategy Business Development R&D • Michel Seguin is appointed Senior Vice President Americas • Total appoints Patrick Héreng as Chief Information Officer

- Total has announced the following appointments: • Laurence Storelli has been appointed Vice President, Human Resources and Internal Communication as part of the Refining and Marketing senior management team. • Jean-Noël Dairon has been appointed Vice President, Human Resources and Corporate Communication as part of the Chemicals senior management team.

February

• Upstream news:

- Total announces that its wholly owned subsidiary, Total E&P USA, Inc., has agreed to sell two mature fields, Bethany and Maben, located in East Texas and Mississippi, respectively, to XTO Energy Inc. The transaction is scheduled to close by the end of February 2006. Total will now focus its exploration and production projects in the United States on the offshore Gulf of Mexico.

- Sociedade Nacional de Combustíveis de Angola (Sonangol) and Total’s wholly owned subsidiary Total E&P Angola announce a new oil discovery with the fifth exploration well drilled on Block 32 in the offshore ultra-deepwaters of Angola. Drilled in a water depth of 1,758 meters, the Mostarda-1 well tested at a rate of 5,347 barrels per day of oil at 30° API density, from one of the reservoir intervals encountered. The discovery is located in the eastern part of Block 32, approximately 14 kilometres south of Canela-1, and 15 kilometres southeast of Gengibre-1, other discoveries on the same block announced in 2004 and 2005 respectively.

- Total (24%) and partners Repsol YPF (operator), OMV and Saga have made a seventh oil discovery in Libya’s Block NC 186, in the Murzuq Basin 800 kilometres south of Tripoli. During production testing, the K1 well flowed at a rate up to 2,300 barrels of oil per day.

- The Norwegian Parliament has approved plans to develop the Tyrihans field, located around 170 kilometers offshore in the Haltenbanken area of the Norwegian Sea in 285 meters of water. The project includes the simultaneous subsea development of two structures, one for oil and natural gas (Tyrihans North) and the other for condensate (Tyrihans South). The wells will be tied to processing facilities in the nearby Kristin field, in which Total also has an interest. After separation, the liquids will be exported via the existing terminal of Åsgard and the gas will be piped to the Kårstø plant with output from Kristin. Production at Tyrihans is scheduled to begin in 2009 and is expected to reach an initial plateau of around 70,000 barrels of oil equivalent per day in 2011.

- Total announces that wholly-owned subsidiary Total E&P Australia has been awarded two exploration permits offshore northwestern Australia following the October 2005 licensing round. Exploration permits WA-369-P and WA-370-P are located approximately 150 kilometres offshore in a water depth of around 1,400 meters. Seismic surveys will be conducted in block WA-370-P this year.

• Downstream news:

• Business/Finance news:

March

• Upstream news:

- Total and PetroChina have signed a Production Sharing Contract for the evaluation, development and production of the natural gas resources of the South Sulige block of Ordos Basin, an area of around 2,390 square kilometres located in the Province of Inner Mongolia, onshore China. The contract is subject to approval by Chinese authorities. The evaluation of this field will include the acquisition of new seismic data, reentry of existing wells and the drilling and testing of new wells.

- Total has been awarded, by the government of Cameroon, the Bomana exploration block in the offshore Rio Del Rey basin. Total will be the operator of this block with a 100% interest.The 140-square-kilometre block is located near concessions operated by Total in Cameroon.

- Total announces the acquisition of a 60% interest in the exploration blocks 17 and 18, situated offshore southeast Bangladesh, from Tullow Bangladesh Ltd. (operator, 32%), Okland Bangladesh Ltd. (4%) and Rexwood Offshore Holdings Ltd. (4%). The purchase is presently undergoing approval by the Bangladesh government. With a total surface area of near to 14,000 square kilometres, these blocks are located in water depths of approximately 20 metres. Seismic acquisition works are planned to start at the in 2006.

- Total announces an oil discovery in the Mer Très Profonde Sud (MTPS) block, located around 180 kilometres southwest of Pointe Noire in the Republic of the Congo. Drilled in 1,970 metres of water to a total depth of 3,370 metres, the Aurige Nord Marine 1 exploration well tested at 4,970 barrels of oil per day. The potential of the well is currently being assessed. Aurige Nord Marine 1 is the third oil find in the block, following Andromède Marine 1 in 2000 and Pégase Nord Marine 1 in 2004. These three discoveries may form the basis for a future development.

- Total announces the start of production of the Glenelg gas and condensates field, located 240 kilometres east of Aberdeen in a water depth of about 100 metres. The Glenelg development has been a technical challenge for Total. The Group managed to successfully drill a highly deviated well of 7300 metres in length from the Elgin platform. The well reached its target at a depth of 5600 metres below sea level in a very high temperature and high pressure reservoir (200 degrees Celsius and 1150 bars). This well has a production potential of about 30,000 barrels of oil equivalent per day.

• Downstream news:

- Total announces the following Refining & Marketing appointments, effective April 3: • Alain Grémillet is appointed Corporate Secretary.

• Business/Finance news:

- Michel Bénézit who was previously Director of Exploration and Production for Northern Europe has been named President of Refining & Marketing for Total from April, 1st, 2006. He will also become a member of the Group’s Executive Committee.

- The Board of Directors of Total, chaired by Thierry Desmarest, met on March 14, 2006. The following resolutions*, among others, will be proposed to the shareholders at the May 12, 2006 Annual Meeting in Paris : • Approval of the consolidated accounts and parent company accounts for the year ended December 31, 2005. • Proposal to pay a cash dividend for 2005 of 6.48 € for each 10 € nominal value share, with the remaining balance of 3.48 € per share to be paid on May 18, 2006. • Re-election as directors for three-year terms of Mrs. Anne Lauvergeon, and Messrs. Daniel Bouton, Bertrand Collomb, Antoine Jeancourt-Galignani, Michel Pebereau, and Pierre Vaillaud. • Appointment as a director for a three-year term, of Christophe de Margerie, President of Exploration and Production for Total. • Approval of the operations linked to the establishment of Arkema as a company independent of Total.

- Total has announced the following nominations effective as of April 1st 2006: • Michel Contie is appointed Senior Vice President Northern Europe • Roland Festor is appointed Managing Director Total E&P UK

- The Board of Directors of Total Gabon, chaired by Jean Privey, met on March 21st, 2006 and approved the final accounts for the year ended December 31, 2005. Net income in 2005 was $316.8 million, compared to $241.5 million in 2004.The oil production of the fields operated by Total Gabon amounted to 35.7 million barrels in 2005, representing a slight decrease versus the previous year. The Total Gabon share of the oil produced (including the tax oil reverting to the Republic as per the Profit sharing Contracts) amounted to 28.1 million barrels in 2005 compared to 29.5 million barrels for fiscal year 2004, representing roughly 29% of the national crude oil production in Gabon. Revenues amounted to $1,140.9 million, representing an increase of $261.2 million as compared to fiscal year 2004 (+29.7%). These higher sales resulted from the conjunction of lesser volumes sold and higher levels of the oil price for the crude oil commercialised by Total Gabon (which averaged $48.04 per barrel in 2005 compared to $34.28 per barrel in 2004). Operational costs have increased in 2005 by 12.6% due to the continuation of strong drilling and development activities and the ongoing programme of large maintenance projects.

April

• Upstream news:

- Total announces successful results from its Alaminos Canyon Block 856 No. 1 well in the Gulf of Mexico. The block is located approximately 140 miles east of the Texas coast. Drilled in 7,600 feet of water to a total depth of 14,600 feet, the well encountered approximately 290 feet of pay in two oil-bearing zones. An appraisal well will be drilled to further assess the extent of the accumulation.

• Downstream news:

- Total has signed two agreements to sell to Caisse des Dépôts et Consignations its 25% interest in Gaz de Strasbourg and its 16% interest in La Société du Gaz de Bordeaux, two local distribution companies that serve manufacturers and consumers in the municipalities of Strasbourg and Bordeaux. Finalisation of these transactions is subject to the exercise of any applicable approval and pre-emptive rights. Total produces, transports and markets natural gas, both on a wholesale basis and directly to industrial and commercial customers. Following the separation of Total and Gaz de France’s cross-shareholdings in their joint transmission and marketing subsidiaries, the sale of these assets, which are not strategic to Total’s local gas operations, further clarifies and aligns the Group’s positions in France, where it is a key operator.

• Business/Finance news:

- The Netherlands Arbitration Institute (NAI) delivered its decision to both parties, Santander Central Hispano (SCH) and Total, in the arbitration. Total acknowledges the work of the arbitrators appointed by the NAI in their analysis of this litigation and is satisfied with the principal decisions of the award : • SCH’s failure to comply with its contractual and legal obligation to act in good faith ; • the return to Total of its 8.31 % interest in Cepsa currently held via Somaen Dos, a holding company in which SCH and Total are shareholders ; • the recognition of Total’s right to exercise its call option against SCH over 4.35 % of Cepsa at a price estimated today at below 5 euros per share ; The award rendered by the NAI will be supplemented in due course by a decision concerning notably the damages to be borne by SCH.Total is very satisfied to be the shareholder of reference of Cepsa, the 2nd Spanish oil and gas company and plans to continue to support the development of this company.

- Total regularly organizes capital increases, in a commitment to enabling employees to own a financial stake in their company’s performance and growth. Following similar operations in 2002 and 2004, a new capital increase was carried out from February 6 to 24, 2006. It involved 500 employee shareholder correspondents worldwide and more than 100 country correspondents. The 60,500 participants purchased an average of 46 new Total shares for an average investment of €7,670*. As was the case in previous operations, in most countries employees could finance all or part of their purchases through salary advances with repayment spread over 24 months.

May

• Upstream news:

- Total has made a discovery in the Timimoun gas perimeter in southwestern Algeria, which it operates with a 63.75% interest alongside state oil and gas company Sonatrach (25%) and Cepsa (11.25%). The MJB-3 exploration well tested at 235,000 cubic meters of gas per day. The find is currently being evaluated, while the exploration and appraisal program continues in the Timimoun perimeter.

- Total announces the signature of two agreements to participate in the exploration of four offshore blocks situated to the northwest of Australia. Under the terms of one agreement with the Australian company BHP Billiton, Total takes a 25% interest in the WA-301-P exploration block. BHP Billiton is the operator with a 50% interest and is partnered with the Chinese company CNOOC, also holding a 25% stake. These four blocks are situated between 300 and 400 kilometres from the shore in water depths ranging from 1,000 to 3,000 metres. Exploration activities are planned starting in 2007.

• Downstream news:

- The Saudi Arabian Oil Company (Saudi Aramco) and Total signed a comprehensive Memorandum of Understanding (MOU) related to the planned development of a 400,000 barrel per day world-class, full-conversion refinery in Jubail, Saudi Arabia. The proposed refinery will be designed to process Arabian Heavy crude and will produce high–quality refined products that meet current and future product specifications. The project is currently scheduled to start up in 2011.

• Business/Finance news:

- Through Total Regional Development, Total has been supporting small and medium-sized businesses in host regions in France for more than 25 years. Over 3,000 companies with a combined 44,600 jobs have received assistance, designed to drive local economic growth. With operations in nearly 130 countries, Total is now extending this commitment to supporting economic development to host communities outside France.

- The following persons have been appointed to the Group Management Committee: • Françoise LEROY, General Secretary, Chemicals • Peter HERBEL, General Counsel • Jean-Jacques MOSCON, Senior Vice President, Strategy, Development and R&D, Refining & Marketing • Patrick POUYANNE, Senior Vice President, Strategy, Business Development and R&D, Exploration & Production.

June

• Upstream news:

- Total announces an oil discovery from the first exploration well drilled in the Dissoni Block in the offshore Rio del Rey basin in Cameroon. The government of Cameroon awarded the block to Total E& P Cameroun, the operator, and Pecten Cameroon Company in April 2005. Less than 18 months after the Bakingili discovery well in October 2004, the latest discovery validates Total’s strategy of capitalizing on its operated acreage in Cameroon, as well as its commitment, alongside its partners and the authorities, to offsetting the natural decline in production from mature fields.

• Downstream news:

- The Euskadour pipeline interconnecting the gas grids in the Basque regions of France and Spain was inaugurated. Construction of the pipeline by Total Infrastructures Gaz France (TIGF), a Total subsidiary, and Naturgas Energia began in November 2004 and was completed in late 2005. The 28-kilometer long Euskadour interconnector will initially carry around 500 million cubic metres of natural gas a year on both sides of the Pyrenees, equivalent to the consumption of the French city of Bordeaux. Total is currently involved in three major gas projects in France, for a total investment of €550 million over the next five years. First, it is taking part in the construction of the new Fos Cavaou LNG terminal, with a capacity of 8.25 billion cubic metres per year. Then, to carry the liquefied natural gas offloaded in Fos, Total will complete the doubling of the Artère de Guyenne pipeline from Lussagnet across the Dordogne River. Last, subject to the necessary administrative approvals, the capacity of the Lussagnet natural gas storage facility will be expanded to 3.5 billion cubic metres from 2.4 billion cubic metres.

• Business/Finance news:

- The earthquake that devastated the central region of the island of Java killed thousands of people and destroyed several thousand homes, leaving over 100,000 people homeless. Present in Indonesia for close to 40 years with some 2,000 employees, Total is particularly touched by the event and expresses its full compassion to victims’ families and all Indonesians affected by this tragedy so soon after the tsunami of December 2004. In the immediate aftermath of the disaster, Total and the Group’s local subsidiary provided logistical support for the emergency team of 40 doctors sent by the French government and have sent a specialised intervention team to support relief workers under the responsibility of the Indonesian Minister of Energy. Total has also donated one million US dollars to the Indonesian Red Cross to help earthquake victims.

July

• Upstream news:

- Total announces a new successful result in the Gulf of Mexico. The Alaminos Canyon Block 856 No. 2 well was drilled in 7,800 feet of water to a total depth of 15,625 feet and encountered 85 feet of oil pay in the main objective. This second successful well confirms the extent of the structure of Alaminos Canyon Block 856. Development options for this block are currently being evaluated. The block is located approximately 140 miles east of the Texas coast in an area where several discoveries have already been made.

- Total (operator, 53.5%) announces an oil find in the Moho-Bilondo exploration permit, located around 80 kilometres offshore the Republic of the Congo, in water depths ranging from 600 to 900 metres. Drilled to a total vertical depth of 2,269 metres, the Mobi Marine 2 well identified two new oil-bearing structures at the base of the Upper Miocene over a combined thickness of around 30 metres. Launched in late August 2005, the initial Phase 1 development plan for the Moho Bilondo project comprises 12 subsea wells tied back to a floating production unit (FPU) whose output—around 90,000 barrels per day at peak—will be exported to the Djéno terminal. The field is scheduled to come on stream in 2008.

- Total (operator, 100%) announces an oil discovery in Block NC 191 in southwestern Libya, around 800 kilometres south of Tripoli. This is the first find in the block, located in the southern Murzuq Basin and awarded to Total in March 2001. Drilled to a total depth of 1,735 metres, the D1 well tested at 675 barrels of oil per day. Appraisal of the discovery and the potential of the remainder of the block is underway.

- Total announces that its wholly-owned Nigerian operating subsidiary, Elf Petroleum Nigeria Limited (EPNL), has signed a farm-in agreement with Amni International Petroleum Development Company Limited, for the Oil Mining Licences (OMLs) 112 and 117 offshore southeast Nigeria. OMLs 112 and 117 are located in the eastern part of the Niger Delta, at about 20 kilometres from the Bonny LNG plant. Together, they cover an area of 550 square kilometres in water depths between 10 to 15 metres.EPNL is the technical partner and will operate the appraisal and development on behalf of Amni. An appraisal well, Ima 12, has just been drilled and confirmed the gas reserves of the acreage. The development of offshore fields in Nigeria constitutes one of the principle growth areas for Total in Africa, in particular with the development of the Akpo field, with start-up planned for late 2008 at a level of 225,000 barrels of oil equivalent per day. Total also holds a 15 % stake in the Bonny liquefied natural gas plant.

• Downstream news:

- Total has signed conditional sale and purchase agreements to acquire the shares and business interests of Shell Fiji Limited in Fiji and the business assets of Shell in Tonga. The agreement covers Shell’s distribution, sales and marketing interests in retail, commercial, aviation, marine petroleum products and lubricants in Fiji and Tonga. The acquisition represents a network of 9 terminals and depots and 20 service stations. With a presence in New Caledonia and French Polynesia, Total’s downstream portfolio in the Pacific Islands already includes a network of 10 terminals and depots and 62 service stations, as well as lubricants, aviation fuels, and liquefied petroleum gas (LPG) activities.

- Total announces the startup today of the hydrogen production unit (Steam Methane Reformer - SMR), at the Normandy refinery near Le Havre. This startup is the first step in the commissioning of the new distillate hydrocracker (DHC) project. The next steps consist of bringing the sulfur recovery units on stream in August then commissioning the hydrocracker, which will be gradually ramped up to reach full product availability at end-September. The units convert heavy fractions of petroleum into ultra low sulfur distillates, such as automotive diesel and kerosene, to reduce deficits in Europe. They will have an annual production capacity of 1.3 million metric tons of sulfur-free automotive diesel, 200,000 metric tons of sulfur-free kerosene, 500,000 metric tons of high quality bases for lubricants and specialty fluids, and 400,000 metric tons of naphtha feedstock for petrochemicals.

• Business/Finance news:

- Total announces the appointment of Marc Formery as Vice President, Internal Audit. He succeeds Michel Piaton.

- From July 2 to 8, Total Corporate University* is hosting 55 students from 11 countries for a weeklong Summer School at which key energy issues and challenges will be analyzed and discussed, with contributions from academics and senior managers from Total. Held at Total University’s campus in the Paris region, the first Summer School session brings together 55 students from Nigeria, Indonesia, the United Kingdom, Angola, Italy, Germany, China, the United States, Iran, Bolivia and Argentina.

August

• Upstream news:

- Total has signed an agreement with Indonesia’s PT Easco East Sepanjang to farm into the offshore East Sepanjang block, northeast of Java, with a 49 % working interest. Lying in water depths ranging from 400 to 1,000 metres, the East Sepanjang block covers around 5,100 square kilometres. A seismic survey will be conducted by year-end and an exploration well drilled in 2007. Total will assume operatorship after the first 3 years “Firm Commitment” exploration period. Total is the country’s leading gas producer and supplies more than 70 % of the feed gas for the Bontang liquefaction plant, on behalf of the 50-50 Total-Inpex joint venture, operator of the Mahakam block in which the Tambora, Tunu and Peciko gas fields are located. The Group produced more than 2.6 billion cubic feet per day of gas in Mahakam in first-half 2006. Output will be maintained at this level at least through 2010. Total is also a top-tier oil and condensates producer, with operated output of 88,000 barrels per day in 2005.

- Total announces that its wholly owned subsidiary, Total E&P USA Inc., was the high bidder on 20 deepwater exploration blocks in the Western Gulf of Mexico Lease Sale 200. Total E&P USA Inc. will operate these blocks with a 100% working interest. Award of these blocks is subject to final approval by the Minerals Management Service. Total E&P USA Inc. obtained 7 blocks in the Keathley Canyon area and 13 blocks in the Garden Banks area, each deepwater block spans 5,760 acres. In early 2006 Total finalized an agreement to exchange four onshore fields in southern Texas for a 17% stake in the deep-offshore Tahiti field in the Gulf of Mexico. Tahiti is scheduled to come on stream in 2008 with a production capacity of 125 thousand barrels per day of oil and 70 million cubic feet per day of natural gas. Since the beginning of the year Total has also announced two successful drilling results in the Gulf of Mexico with the Alaminos Canyon Block 856 No. 1 and No. 2 wells.

• Downstream news:

- Total has acquired Chevron’s interest in the Brass LNG project in the Niger Delta, 90 kilometres west of Bonny Island, Nigeria. Its current partners are NNPC, Eni and ConocoPhillips. Project sanction for the first two trains of Brass LNG is expected by year-end, with production scheduled to start up in 2011. Initially, two trains will be built, with a capacity of 5 million metric tons per year each, with most of the LNG intended for export to Europe and the U.S. The feed gas will be supplied from the partners’ productions, with Total accounting for a third, or 570 million cubic feet per day, over a period of at least 20 years. The Brass LNG project will enable Total to step up the monetization of its Nigerian gas resources from onshore fields, offshore clusters under development and Oil Mining Leases (OML) 112 and 117, in which the Group recently acquired a 40% interest. The interest is in addition to Total’s 15% stake in NLNG, whose capacity was recently expanded to nearly 18 million metric tons per year with the commissioning of Trains 4 and 5 earlier this year. Train 6, with a capacity of 4 million metric tons per year, is under construction and scheduled to come on stream in 2007.

- Total announces the signature of an agreement with Japanese energy company INPEX to acquire a 24% interest in Block WA 285-P, located in approximately 250 meters of water offshore northwestern Australia. The proposed transaction is subject to the approval of the Australian authorities in the near future. INPEX currently owns a 100% interest in Block WA 285-P, which contains the Ichthys gas field, discovered in 2000. Six appreciation wells drilled between 2000 and 2004 confirmed the find’s rich gas and condensate potential. The Ichthys development plan consists of an integrated field/liquefaction facility scheduled to come on stream early in the next decade. The plant is envisaged to be built on an island in the Kimberley region, less than 200 kilometers from the field. INPEX recently filed documents with Australian federal and state governments to obtain environmental approval for the project, with a capacity envisaged above 6 million metric tons of LNG a year associated with 100,000 barrels per day of condensates and LPG, and which could be increased depending on confirmation of additional reserves and market demand.

• Business/Finance news:

- Total and Banco Santander Central Hispano (Santander) have signed an agreement to implement the provisions of the partial award made on March 24, 2006 by the Netherlands Arbitration Institute, which adjudicated their dispute concerning Cepsa. Under the agreement, the Cepsa shares held by investment vehicle Somaen Dos which are due to Total are returned effective today. Total now directly owns 44.5% of Cepsa’s share capital. Total and Santander have terminated their shareholder agreements concerning Cepsa.

- Total announces that it has acquired a 10% interest in Scotrenewables Marine Power Ltd., (the sister company of Scotrenewables Wind Power Ltd), based in Scotland’s Orkney Islands, that is developing an electricity generation technology based on tidal turbines. Scotrenewables Marine Power Ltd is working closely with the European Marine Energy Centre (EMEC), which has the necessary infrastructure to test marine power devices. It is also supported by researchers from Heriott-Watt University based in Edinburgh and from the University’s Orkney Campus, with which Total has several partnerships. Aside from the fact that it does not emit greenhouse gases, tidal power has the advantage of being predictable. In the long-term, marine power could make a significant contribution to electricity generation from renewable sources, particularly in the UK and France. The Orkney Islands are located in an area with some of the strongest tidal currents in Europe. Along with biofuel, Total has been involved in photovoltaic solar energy for more than 20 years. It is pursuing its work in this area through the companies Photovoltech and Tenesol. Total is also studying a more than 100 MW offshore wind power project off of Dunkirk.

September

• Upstream news:

- A consortium comprising Total (50%), Hocol (operator, 20%, subsidiary of Maurel & Prom), and Talisman (30%) has been awarded the exploration rights for the Niscota Block in Colombia. The 623-square-kilometre block is located approximately 180 kilometres northeast of Bogota in the Llanos basin, where major oil finds have already been made. The partners are planning to conduct exploration operations in 2007.

- Total has signed the final agreement with the Basilicata regional authorities in southern Italy to implement the development of the Tempa Rossa field. This agreement also defines the Group’s environmental commitments and includes a project defining social actions with the Basilicata region. Tempa Rossa was discovered in 1989 in the southern Apennines. The exploitation scheme comprises six production wells—five of which have already been drilled—tied into a production center. Storage for liquefied petroleum gas will be also built on the site and the oil will be piped to the terminal of the Taranto refinery. With initial production in 2010 and peak production of around 50,000 barrels of oil per day, the Tempa Rossa field will significantly increase Italy’s oil and gas production.

• Downstream news:

• Business/Finance news:

- As of October 1, 2006, Jean-François Minster will move into the position of Senior Vice President, Scientific Development, replacing Claude Jablon. Effective that date, the Scientific Development Department will report to Group Management.

- The first half of 2006, the net income was $ 187.9 million compared to $ 144.5 million for the first half of 2005. This was achieved thanks to a strong rise in the average selling price of the crude oil commercialised by Total Gabon (+42%) which compensated for the slightly lower volumes sold (-1.3%) compared to the first half of 2005.

- Total announces the following appointments effective October 1, 2006: • André Tricoire is appointed Senior Vice President, Refining, succeeding Jean-Claude Company, who is retiring. • Jérôme Paré is appointed Vice President, Marketing France, succeeding André Tricoire. • Thierry Pflimlin is appointed Senior Vice President, Asia, succeeding Gary Jones, who is retiring. • The partnership agreement signed in 2003 between Total and France’s non-profit road safety association La Prévention Routière has been renewed for a period of three years. Covering an array of joint initiatives, the partnership reflects Total’s long-term commitment to improving road safety.

October

• Upstream news:

- Sociedade Nacional de Combustiveis de Angola (Sonangol) and Total E&P Angola, a wholly-owned subsidiary of Total, announce that the Orquidea-2 appraisal well has confirmed and expanded the potential of the Orquidea discovery in Block 17 offshore Angola. Located approximately 2 kilometres from the Orquidea-1 discovery well and drilled in a water depth of 1,165 metres, Orquidea-2 identified and confirmed the Miocene objectives encountered by Orquidea-1 and also identified deeper Oligocene reservoir levels. The Oligocene and Miocene objectives are both oil-bearing. The Orquidea structure is located near the Lirio, Cravo and Violeta finds. This dual drilling success confirms the potential for development of a fourth production zone in Block 17, for which preliminary design is underway. The production zone is located in the northwestern area of Block 17 and will complete the Girassol and Dalia zones, to be followed soon by the Pazflor production zone.

• Downstream news:

- Located near Tampico on the eastern coast of Mexico, the Altamira liquefied natural gas (LNG) regasification terminal, in which Total has a 25% interest, yesterday welcomed President Vicente Fox at a ceremony marking the recent official startup of commercial operations. Construction of the terminal began in 2003 and was completed on schedule and on budget, with an excellent safety record. The first of its kind in Mexico, the facility will make a significant contribution to the country’s gas supply. Total owns a 25% interest in the two companies involved in the project. Terminal de LNG de Altamira (50% Shell, 25% Mitsui, 25% Total) owns and operates the regasification terminal, while marketing company Gas del Litoral (75% Shell, 25% Total) has signed a 15-year contract with Mexican electric utility Comisión Federal de Electricidad (CFE) to supply 5 billion cubic metres of gas a year from the new terminal.

• Business/Finance news:

- Elizabeth Fong, Manager of UNDP’s Regional Center in Bangkok (RCB), and Bruno Weymuller, member of Total’s Executive Committee (France) and President, Strategy and Risk Assessment, today signed a three-year, renewable cooperation agreement covering joint actions in the Asia-Pacific region, where both organizations have a strong presence. Defined in cooperation with the national and regional governments of the countries concerned, local actions will be implemented by national UNDP offices and Total subsidiaries in the region. These initiatives will focus on areas where both UNDP and Total are active, such as energy, socioeconomic growth, sustainable development, social innovation and business ethics. The two partners are already conducting joint programs, including management of the Mahakam River Delta in Indonesia and access to energy in rural communities in Cambodia. In addition, contacts have been forged in China over recent months.

- After approval on October 13, 2006 by the European Commission, Banco Santander Central Hispano (Santander) sold 4.35% of Cepsa’s share capital to Total at a price of €4.54 per share, for a total transaction amount near to €53 million. The transaction follows the agreement signed on August 2, 2006 by Total and Santander to implement the provisions of the partial award rendered on March 24, 2006 by the Netherlands Arbitration Institute, which adjudicated their dispute concerning Cepsa. As a result Total now holds 48.83% of Cepsa.

- As often referred to in the press, for over 2 years the conditions for applying the United Nations sponsored oil-for-food program have been the subject of different investigations. On October 19, 2006 Mr. Christophe de Margerie, President Exploration and Production for the Total Group and member of the Executive Committee, after being held in custody for 48 hours and questionned, was placed under investigation(*). Total confirms that at no time did the Group circumvent the United Nations embargo against Iraq and strictly adhered to the rules of the oil-for-food program organised under the control of the United Nations. All oil acquired by the company, without exception, was purchased officially with the required authorisations under UN within the framework of the oil-for-food program put in place in 1996. The Group has never purchased, either directly or indirectly, oil that has been smuggled illegally from Iraq. The Group reaffirms that it exercises its activities while respecting the law and adhering to its ethical code and values regardless of the difficulty and the complexity of its different activities. (*) this sentence was amended on October 24, 2006 due to a translation error from French to English.

November

• Upstream news:

- Total has been awarded an exploration licence for block L3, on the Dutch Continental Shelf, in the Netherlands. The block is situated 100 kilometres offshore north of Den Helder, within water depths of around 40 metres, and covers 406 square kilometres. The licence is granted for four years. The national Dutch State company EBN is expected to become a 40% partner of the project and Total, as operator, will hold the remaining 60%. The L3 block is in the vicinity of the L4a, L7 and F15a producing blocks operated by Total.

- Total is pleased to announce that its wholly owned subsidiary, Total E&P UK PLC, has made two significant oil and gas discoveries in the Alwyn Area. The Alwyn Area is located in the UK sector of the North Sea, 160 kilometres east of the Shetland Islands and 440 kilometres northeast of Aberdeen. Production from the Alwyn Area includes the Alwyn North, Dunbar, Grant, Ellon, Nuggets, and Forvie North fields which are all 100% owned and operated by Total. The Jura West 3/15-10 well was drilled 10 kilometres east of the Dunbar field. The well intersected over 300 metres of good quality Middle Jurassic, Brent reservoir, all of which has been found to be gas-bearing. Jura West is expected to start production in 2008, via a 3 kilometre tie-back to the Forvie North subsea manifold which is linked to the Alwyn North NAB process platform. A second development well and a near-by exploration well are already planned. This discovery comes a few weeks after another exploration well drilled from the Alwyn North NAA platform (3/9a-N50) encountered 85 metres of gas condensate bearing sands in the Statfjord Formation and 60 metres of oil bearing sands in the overlying Brent Formation.

- Total announces the startup of the commercial phase of its Joslyn project in the Athabasca region. The Joslyn lease is located about 60 kilometres northwest of Fort McMurray, Alberta, Canada. Deer Creek Energy Limited, a wholly owned subsidiary of Total, is the operator of Joslyn with an 84% interest. The Joslyn lease will be produced using both SAGD and oil sands surface mining technologies. This first development using steam assisted gravity drainage (SAGD) will bring production to 10,000 barrels of bitumen per day at plateau, which will be shipped after dilution to a terminal on the Athabasca Pipeline. The startup of this phase of the Joslyn SAGD project represents the first commercial production from the Joslyn lease. It is a further key step in Total’s strategy to developing its heavy oil resources in Canada. Total estimates cumulative production from the Joslyn lease at around 2 billion barrels of bitumen. Mining developments are planned for the first part of the next decade. An application for the first 100,000 barrels of bitumen per day surface mining project was submitted to the regulatory agencies in February 2006 and is currently being reviewed. Total’s share of the aggregate production from Surmont and Joslyn should reach near to 300,000 barrels per day in the next decade. In addition, the Group has taken significant positions in other neighboring blocks and is actively studying downstream solutions to upgrade the bitumen.

• Downstream news:

• Business/Finance news:

- Total announces that it has signed agreements to sell its power generation interests in Argentina. Since 2001, Total has held a 63.9% interest in Central Puerto S.A., one of Argentina’s leading thermal power generators with rated capacity of 2,165 MW, and a 41.3% interest in Hidroélectrica Piedra de Ấguila, with a 1,400 MW hydroelectric plant in Neuquén province. Leveraging its position as Argentina’s second-ranked gas operator, Total will now focus on exploration and production. Present in the country since 1978, the Group operates fields in Terra del Fuego and the Neuquén region, with equity output of 74,000 barrels of oil equivalent per day in 2005. Total also has interests in pipeline networks serving markets in Argentina and adjoining countries and is active in liquefied petroleum gas and lubricant marketing, as well as chemicals.

- Total announces the appointment of Yves-Louis Darricarrère as President, Exploration & Production, effective next February, when Christophe de Margerie takes over as Chief Executive Officer.

- The following people are appointed to Total’s Management Committee: • Yves-Marie Dalibard, Vice President, Corporate Communications since January 1, 2005. • Alain Grémillet, Refining & Marketing Corporate Secretary since April 3, 2006. • Jean-François Minster, Senior Vice President, Scientific Development since October 1, 2006. • Veolia Environnement and Total announce the creation of Osilub, a joint venture to develop a sustainable used motor oil recycling business. As part of this initiative, Osilub will build a 120,000-metric-ton-per-year plant in Grand-Quevilly in the autonomous port zone of Rouen, France, to re-refine used motor oil into reusable petroleum products, including base stock of the same high quality as virgin oil. The €50-million facility is scheduled to come on stream in 2008.

December

• Upstream news:

- Total signed an exploration and production sharing contract for the offshore Diaba license in Gabon. Covering an area of 9,075 square kilometres, the license is located around 50 kilometres offshore southern Gabon in water depths ranging from 100 to 2,500 metres. The license partners are Total Gabon with an 85% interest and the Gabonese Republic with a direct interest of 15%. The exploration program will be divided into three phases. The first phase, lasting three-and-a-half-years, consists of a commitment to shoot 2,000 kilometres of 2D seismic. The second phase, also lasting three-and-a-half years, comprises a commitment to shoot 700 square kilometres of 3D seismic, while the third phase, lasting three years, includes an obligation well. Through subsidiary Total Gabon, the Group is the country’s top-ranked oil operator, with total operated crude oil production of around 37% of Gabon’s total output. Total’s equity production averaged 98,000 barrels of oil equivalent per day in 2005.

- Sonangol, the Angolan state oil company, as concessionaire, and Total, as operator, announce first production from Angola’s deepwater Dalia field in Block 17. Discovered in September 1997 and located some 135 kilometres off the coast in water depths ranging from 1,200 to 1,500 metres. Dalia is estimated to contain close to 1 billion barrels of recoverable oil. It is the largest deepwater development to be brought onstream this year and among the largest projects of its kind in the world. The Dalia field is comprised of 71 wells, 31 for water injection, 3 for gas injection and 37 producers tied into 9 manifolds. The subsea installation consists of 40 kilometres of insulated production flowlines linked to eight hi-tech flexible risers specially manufactured for the project and taking the fluid up to a Floating Production Storage and Offloading (FPSO) vessel, which has an oil treatment capacity of 240,000 barrels of oil per day and a storage capacity of 2 million barrels.

- Total announces the start-up of commercial gas production of the Shah Deniz gas condensate development project located in the Azerbaijan area of the Caspian Sea, approximately 70 kilometres south of Baku. Discovered in 1999, the field is lying in water depths ranging from 50 metres in the northwestern to 600 metres in the southeastern section and covers approximately 860 square kilometres. This Stage 1 of the development of Shah Deniz marks the start-up of export of gas to markets in Azerbaijan, Georgia and Turkey. Stage 1 will produce more than 8.6 billion cubic metres of gas per year at plateau. The gas will be exported via the 690 kilometre South Caucasian Pipeline from Baku through Georgia to the Turkish border.

• Downstream news:

- Total announces the signature of the final agreement formalising the acquisition by Total of a 16.7% equity participating interest in the second train of Qatargas II. This agreement follows the signature of sale and purchase agreements under which Total will purchase up to 5.2 million metric tonnes of LNG per year from Qatargas II for a period of 25 years. Taking advantage of Total’s diversified and strong presence in the gas markets of the Atlantic basin, the LNG is primarily intended for deliveries in France, the United Kingdom and the Gulf of Mexico. Qatargas II is an integrated project covering the development of two new LNG trains, each with an annual capacity of 7.8 million tonnes with the feed gas coming from Qatar’s giant North Field. The sponsors of the Qatargas II project are now Qatar Petroleum, ExxonMobil and Total. Construction of the LNG trains at the Ras Laffan Industrial City in Qatar began in December 2004. The start-up of the second train of the Qatargas II project is presently targeted for winter 2008/2009.

• Business/Finance news:

- Total and French electric utility EDF will tomorrow inaugurate a photovoltaic solar panel production plant owned by their joint subsidiary Tenesol. Located in Saint-Martin-du-Touch in the Greater Toulouse region, the plant has a current capacity of 17 MW per year and is expected to eventually create around 100 direct and indirect jobs. Tenesol has specialized in designing, manufacturing, installing and operating photovoltaic solar systems. Based in Lyon, France, the company already operates a photovoltaic panel production plant in South Africa. In 2005, consolidated revenue stood at close to €145 million. Its operations cover domestic and industrial applications at both grid-connected and off-grid sites.

- Arnaud Breuillac has been appointed Vice President, Central Europe and Continental Asia, Exploration & Production. He replaces Menno Grouvel who is retiring.

- After introducing a “zero flaring” policy for new projects in 2000, Total announced that it will reduce gas flaring by 50% at its operated facilities worldwide by 2012. Total joined the Global Gas Flaring Reduction Partnership (GGFR) in March 2004. Set up in August 2002 at the initiative of the World Bank, the public-private partnership facilitates and supports national efforts to use currently flared gas. Partners include governments of oil producing countries, state-owned companies and major international oil companies. In 2001, Total made a commitment to carefully manage its greenhouse gas emissions. Associated gas flaring accounted for 23% of its greenhouse gas emissions in 2005. Despite significantly higher production, the amounts of gas flared in Total-operated facilities declined by 40% between 1998 and 2005.




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