Total News - 2007

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. makes no claim as to the authenticity of the information posted here, but provides it as a courtesy to our visitors. The information provided on this page was obtained from company-provided press releases and the New York Times and the Los Angeles Times, and is believed to be reliable, but we do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any stock or option or any claim of authenticity. You are encouraged to contact the relevant corporations and news agencies for the most accurate information.


• Upstream news:

- ­Sociedade Nacional de Combustíveis de Angola (Sonangol E.P.) and Total E&P Angola, a wholly owned subsidiary of Total, announce a new oil discovery with the sixth exploration well named Salsa-1, drilled on Block 32 in the ultra deep waters of the Angolan offshore. Drilled in a water depth of 1,806 metres, the Salsa-1 well tested at a rate of 3,686 barrels per day of oil, from a Miocene reservoir. The discovery is located in the southeastern part of Block 32, approximately 15 kilometres southwest of the Mostarda-1 discovery. Complementary technical studies are underway to evaluate the results obtained from the tests, and further exploration drilling is underway, and planned, across the block. Sonangol holds the concession rights for Block 32. The Contractor Group is formed by Total, that holds a 30% interest as operator; other partners are Marathon Oil Company (30%), Sonangol E.P. (20%), Esso Exploration and Production Angola (Overseas) Limited (15%) and Petrogal (5%). ­

- Total announces that it has made a new significant oil discovery in deep-water Block 14, within the Lower Congo Basin, offshore Angola. Total holds a 20% interest in Block 14 alongside Cabinda Gulf Oil Company Limited, (31%), Sonangol, P. P (20%), Eni (20%) and Galp (9%). The Lucapa-1 discovery well was drilled in 1,201 metres of water to a total vertical depth of 3,340 metres and encountered more than 85 metres of oil in Miocene age sands. The well tested 24-degree API gravity oil from high permeability sand in the main target interval. The discovery will be followed by further appraisal drilling in addition to geologic and engineering studies to appraise the field and assess its potential reserves. The Lucapa discovery is the 10th exploration discovery made in Block 14 since 1997. ­

- Total announces three new gas discoveries, after three successful exploration wells namely Ton Chan-1X, Ton Chan-2X and Ton Rang-2X drilled on Block 15 & 16 in the Gulf of Thailand, operated by PTTEP (the national Thai oil company). The two wells on Ton Chan area are located on Block 16 of Bongkot concession, 5 kilometres from each other and approximately 15 kilometres southeast of the Bongkot central complex. Ton Chan-1X found gas bearing reservoirs with a total of 143 meter-net pay thickness. Ton Chan-2X found gas with a total of 44 meter-net pay thickness. Ton Rang-2X is located on Block 15 of Bongkot concession, approximately 5 kilometres south of Ton Rang-1X discovery and 20 kilometres northwest of Bongkot Central Complex. Ton Rang-2X encountered gas bearing sand of 72 metres. Development plan of these three discoveries is currently under study and production could start in 2009. Currently Bongkot produces 600 million of cubic feet of gas per day and 18,000 barrels per day of condensate. The Bongkot Joint Ventures is formed by Total (33.33%) and PTT Exploration and Production Public Company Limited as operator (44.45%) and BG (22.22%). The discoveries of Ton Chan-1X, 2X and Ton Rang-2X confirm additional potential of the Bongkot concession thus demonstrating Total’s commitment to gas supply to Thailand.

• Downstream news: ­

- Bostik, the Total subsidiary specialized in adhesives, recently acquired Dupont de Nemours adhesives business for the flexible packaging market. This 22 million Euros business, operating under the Herberts® brand, owns strong technologies supporting a leading position on this market, This acquisition reinforces the presence of Bostik in flexible packaging by extending both its product range and its geographic coverage. This transaction is part of Bostik’s strategy of targeted acquisitions intended to increase its market share on growth markets.

• Business/Finance news: ­

- Philippe Boisseau, Senior Vice President, Exploration & Production and President, Middle East, has been appointed President of Total’s Gas & Power business. He will succeed Yves-Louis Darricarrère, who has been appointed President, Exploration & Production. Ladislas Paszkiewicz, President of Total Austral, the Group’s Argentinean exploration and production subsidiary, will succeed Mr. Boisseau as President, Middle East. Both appointments are effective February, when Christophe de Margerie takes over as Chief Executive Officer. ­

- Spitzbergen, the North Pole and Alaska are all names that spark the imagination of people drawn by the lure of the Far North and the ice pack. Today this fascinating world is under threat. As part of the Fourth International Polar Year, Jean-Louis Etienne* will follow this route as he flies over the Arctic Ocean in an airship. The international team embarking on this exceptional adventure has one critical assignment—providing the scientific community with the first measurements of the thickness of the sea ice that covers the Arctic Ocean. The measurements will serve as a baseline for monitoring the impact of our lifestyles on the climate. The project will stretch over more than three years from start to finish. Construction of the airship began in Russia in October 2006. An expedition to calibrate the EM-Bird electromagnetic measurement device developed by researchers at Germany’s Alfred Wegener Institut (AWI) is scheduled for April of this year. The airship will be delivered later this spring, when test flights will be conducted. After that, the airship will be transported to France for training flights until it departs for the North Pole in March 2008. The measurement survey will be conducted in April and May 2008. To carry out this remarkable undertaking, Jean-Louis Etienne has teamed up with Total**, a global energy producer and provider with a strong stake in various aspects of climate change and a powerful commitment to the future of energy. Supported by the French Research Ministry in partnership with the French Education Ministry, the expedition is sponsored by UNESCO. The scientific program is being conducted in cooperation with the AWI, France’s national weather bureau Météo France, Mercator Ocean, Damoclès, the French National Geographic Institute (IGN), the Paris Earth Physics Institute (IPGP) and the French Atomic Energy Commission’s Information Technology Electronics Laboratory (CEA/LETI). Partners such as Air Liquide, Saft and Gore-Tex are providing technical expertise. The Cité des Sciences et de l’Industrie scientific and cultural center in Paris will host related educational events for children and adults. ­

- Shares in Venezuela's largest telephone company plunged after President Hugo Chavez said the government would take control of it before compensating private owners, including Verizon Communications Inc., for the hundreds of millions of dollars they have invested in the enterprise. Chavez announced this month that his government would nationalize Compania Anonima Nacional Telefonos de Venezuela, or CANTV, and Electricidad de Caracas, the Venezuelan capital's largest power provider, which is controlled by AES Corp. of Virginia. It was unclear from Chavez's statement, made during "Alo Presidente" ("Hello President"), his Sunday-afternoon television talk show, whether the takeover would happen before or after the expiration in May of the license held by its owners. The management of CANTV, which was privatized in 1991, says it has not been served with official notice of a takeover. Shares of the company fell 11% on Monday on the Caracas Stock Exchange. New York-based Verizon, which owns 28.5% of CANTV, had agreed to sell its interest in the utility to Mexican billionaire Carlos Slim Helu for $667 million in a deal announced in 2005. The status of that sale remained unclear. Chavez also announced this month that the government would assume control of four major oil projects in eastern Venezuela. ConocoPhillips, Exxon Mobil Corp. and Chevron Corp. of the United States, Total of France and Statoil of Norway have invested billions in the so-called heavy-oil projects. The president also announced Sunday that he would raise the price of gasoline, which is heavily subsidized, from 18 cents a gallon, but he did not say when or by how much. The gasoline price hike would be the first since 1997; in his successful presidential campaign in 1998, Chavez promised not to raise gasoline prices. Chavez also said he would seek to raise taxes to finance economic development projects directed by community councils. The grass-roots governing bodies, which work hand in hand with a new generation of worker-owned cooperatives, are a key element in his "socialism for the 21st century." Chavez is transferring ownership of thousands of state-owned assets — as diverse as steel factories, repossessed hotels and toll roads — to the cooperatives. His announcements came as falling crude oil prices could be cramping lavish public spending programs designed to redistribute the nation's energy wealth to benefit the poor. In addition to spending hundreds of millions of dollars for subsidized retail goods through the Mercal retail chain and capitalizing the worker-owned cooperatives, Chavez has promised to build or help build five foreign refineries, costing billions each. The tax increases would apply to wealthy individuals, banks, property owners and companies. Luxury taxes would be applied to second homes, yachts, airplanes and artwork.


• Upstream news: ­

- Total announces that it has signed an agreement with U.S.-based Apache to farm into the offshore AC/P37 permit in Australia’s Browse Basin. Located around 200 kilometres off the northwestern coast in a water depth of approximately 200 metres, this permit covers an area of 4,415 square kilometres. Total is acquiring an 80% interest in and will operate the lower levels of this permit, beginning at a depth of roughly 4,000 metres. Apache is retaining a 20% interest and holds a 100% interest in the upper levels. The farm-in strengthens Total’s presence in Australia’s North West Shelf, where it has interests in nine permits, and in the Browse Basin in particular, where the Group has had a 24% interest in the WA-285P permit containing the Ichthys discovery since 2006. The Ichthys liquefied natural gas project is scheduled to come on stream early in the next decade. ­

- Sociedade Nacional de Combustíveis de Angola (Sonangol) and Total E&P Angola, a wholly owned subsidiary of Total, announce new oil discoveries with the eighth and ninth exploration wells drilled on Block 32 in the ultra deep waters of the Angolan offshore. Drilled in a water depth of 1,977 metres, the Manjericão-1 well tested more than 5,000 barrels per day of oil from Oligocene oil bearing reservoirs. This discovery is located in the central part of Block 32, approximately 38 kilometres northwest of the Gengibre-1 discovery made in 2004. It demonstrates that there is additional resource potential in the previously unexplored central area of Block 32. Drilled in a water depth of 1,673 meters, the Caril-1 well also encountered Oligocene oil bearing reservoirs. The well was tested from a selected interval and produced at a rate of 6300 barrels per day of light oil. This discovery is located in the northeastern part of Block 32, approximately 18 kilometres north-northwest of the Gindungo-1 and 7 kilometres west-south-west of Cola-1, discoveries made respectively in 2003 and 2004. Sonangol is the concessionaire of Block 32. Total holds a 30% interest as Operator. Other partners in Block 32 are Marathon Oil Company (30%) , Sonangol E.P. (20%), Esso Exploration and Production Angola (Overseas) Limited (15%) and Petrogal (5%). ­

- After yielding several promising discoveries, the Egina field on Total-operated OML 130 may be suitable for stand-alone development. Alongside NNPC, Sapetro, Petrobras and CNOOC, Total holds a 24% stake in OML 130, which is located around 150 kilometres off the coast of Nigeria. The first stage in the exploration of OML 130 was the discovery of the Akpo field in 2000. Akpo is expected to start production in late 2008 and eventually reach peak production of 225,000 barrels of oil equivalent per day, of which nearly 80% will be condensate. Since the Akpo discovery, the presence of a new structure was revealed by the discovery—around 20 kilometres from Akpo—of Egina-1 in December 2003 and Egina-2 in October 2004. After reprocessing the existing seismic survey, an appraisal program was launched to size the Egina discovery. Drilled in a water depth of around 1,500 metres, the Egina-3 (September 2006), Egina-4 (November 2006) and Egina-5 (January 2007) wells encountered 60 to 80 metres of oil in Miocene sands, confirming the possibility of a stand-alone development of the field. The Egina-5 well was tested to assess its production potential, which could reach around 12,000 barrels per day. ­

- Total announces that it has been awarded the three production licenses it applied for under the 24th Oil and Gas Licensing Round of the United Kingdom’s Department of Trade and Industry. Total will have a 36% interest in Blocks 206/3 and 206/4. Located 80 kilometres West of the Shetland Islands, the two blocks enhance the gas potential of the area near the Laggan prospect. Total was also awarded a 100% stake in Block 3/8f in the Alwyn Area, approximately 420 kilometres North-East of Aberdeen. The award of these blocks reflects Total’s commitment to actively pursuing exploration on the U.K. Continental Shelf and contributing to the development of the North Sea’s oil and gas resources.

• Downstream news: ­

- Total announces that its wholly owned gas and power trading and marketing company Total Gas & Power Limited (TGPL) and Nigeria LNG Ltd (NLNG) have signed a Sale and Purchase Agreement (SPA) for 1.375 million tonnes per annum (MTPA) of liquefied natural gas to be produced by NLNG train 7 for a period of 20 years. The LNG is expected to be delivered to the United States and Mexico to meet the increasing demand for natural gas in those countries, and in particular to Total’s regasification capacity at the Sabine Pass and Altamira LNG terminals. With five trains already in operation and Train 6 expected to commence operations at the end of 2007, NLNG is a market leader in the LNG industry. The Train 7 expansion project, with an 8.4 MTPA capacity, will bring the capacity of the Bonny LNG plant to nearly 30 MTPA. Total holds a 15% stake in NLNG. With the signing of this agreement, long-term purchases of LNG contracted by Total are expected to grow to over 10 MTPA.

• Business/Finance news: ­

- Total announces the launch of a pilot CO2 capture and sequestration project in the Lacq basin in southwestern France. The project, which leverages a technique considered among the most promising in the fight against climate change, calls for up to 150,000 metric tons of CO2 to be injected into a depleted natural gas field in Rousse (Pyrenees) over a period of two years as from end-2008. “This project will demonstrate the role that CO2 capture and sequestration can play in reducing greenhouse gas emissions from industrial installations,” notes Christophe de Margerie, President Exploration & Production of Total. “It represents the first integrated CO2 capture system using oxy-fuel combustion combined with storage in a depleted hydrocarbon field.”The first link in the chain is a steam production unit at the Lacq gas processing plant. Oxygen will be used for combustion rather than air to obtain a more concentrated CO2 stream that will be easier to capture. Once purified, the CO2 will be compressed and conveyed via pipeline to the depleted Rousse field, 30 kilometres from Lacq, where it will be injected through an existing well into a rock formation 4,500 metres under ground. Following preliminary studies in 2006, the Rousse field was selected for its geological structure, which gave the best guarantee of sustainable storage. Total has just launched the engineering study phase. CO2 injection is scheduled to begin in November 2008. The project, which will cost nearly 60 million euros, will be carried out in partnership with Air Liquide and in cooperation with the French Petroleum Institute (IFP), the French Bureau of Geological and Mining Research (BRGM) and others. Over the past ten years, Total has participated in several CO2 sequestration projects, notably in saline aquifers at North Sea oil production sites. The capture and sequestration of CO2 provides yet another way of reducing greenhouse gas emissions alongside programs already deployed by the Group to develop renewable energy sources, reduce flaring of associated gas and make production facilities more energy efficient. ­

- The Board of Directors of Total, led by Chairman Thierry Desmarest, met on February 13, 2007 to review the consolidated accounts for the fourth quarter 2006, close the consolidated and parent company accounts for 2006, and approve the final 2006 dividend proposal for the Annual Meeting. The Board decided to split the function of Chairman and CEO and has named Christophe de Margerie, currently a member of the Board of TOTAL S.A. and President of Exploration and Production, as the new Chief Executive Officer. Thierry Desmarest will remain the Chairman of the Board. ­

- The oil company Total named Christophe de Margerie, formerly the company's No. 2 executive, as its chief. Mr. de Margerie is under investigation in France over a possible plan to pay foreign officials for the right to drill in their countries, linked to the oil-for-food program for Iraq. Total, following the footsteps of several big French companies, announced last year that it would split the jobs of chief executive and chairman, leaving Thierry Desmarest, who currently holds both posts, as chairman only. Mr. de Margerie, left, currently head of the exploration and production division, has worked for Total for more than 30 years. The French authorities placed him under investigation in October for ''complicity in the abuse of company goods'' and ''complicity in corrupting foreign officials.'' Total insists it has abided by the rules of the United Nations oil-for-food program, which allowed Saddam Hussein to sell oil in exchange for humanitarian goods. ­

- Jean-Jacques Guilbaud, President of Human Resources and Corporate Communications, is appointed to Total’s Executive Committee *. As Christophe de Margerie, Chief Executive Officer of Total, makes clear, “The increasing technological complexity of our projects, the expertise required from our teams in all the countries where we operate and open dialogue with all of our stakeholders mean that human resources and corporate communications are critical to our growth and future successes.”


• Upstream news: ­

- Venezuela said it had reached a $250-million deal to compensate Total and BP for an oil field it seized from them in April, but said it would not make the compensation in cash. Speaking at the signing of the deal, Energy Minister Rafael Ramirez pegged the compensation slightly lower than the $262 million that a government official had given earlier. Venezuela seized the Jusepin field after the companies failed to agree to terms under which the field would be operated as a "mixed company," with state oil company PDVSA holding a majority stake. ­

- All foreign companies operating huge crude projects in Venezuela's Orinoco reserve have agreed to cede operational control to the state, Venezuela's oil company said, another step in President Hugo Chavez's nationalization push. State oil company Petroleos de Venezuela said Thursday that U.S. companies Chevron Corp. and ConocoPhillips agreed to meet a May 1 deadline decreed by Chavez to hand over operations to PDVSA in two of the four targeted projects. Norway's Statoil quickly followed suit, saying the project that it operates with France's Total would pass to PDVSA too. The companies will form transition committees to oversee the handover of their multibillion-dollar projects' operations in the OPEC nation. Exxon Mobil Corp., the only other foreign company involved in the projects, agreed Monday to form such a body. Spokesmen for Chevron of San Ramon, Calif., and ConocoPhillips of Houston didn't return calls seeking comment. The Orinoco projects turn tar-like oil into synthetic crude.

­- Total announces that it has been awarded the South East Mahakam exploration block in the Mahakam Delta offshore East Kalimantan in Indonesia offered as part of the 2006 Licensing Round held by the Indonesian Ministry of Energy and Mineral Resources. Total will be the operator with a 50% interest, partnered with Inpex. Located in water depths ranging from 50 metres to 200 metres, around 20 kilometres south of Peciko production facilities operated by Total, South East Mahakam covers an area of around 2,000 square kilometres. The commitments include a 3D seismic survey and the drilling of two exploration wells. ­

- Total announces that development of the Jura gas and condensate field has been launched, just four months after it was discovered. The Jura discovery represents more than 170 million barrels of oil equivalent of proved and probable reserves and is located in the Alwyn Area (100% owned and operated by Total) in the UK sector of the North Sea, 160 kilometres east of the Shetland Islands and 440 kilometres northeast of Aberdeen. Jura is scheduled to come on stream in the second quarter of 2008 and produce around 45,000 barrels of oil equivalent per day at plateau. It will be connected via a three kilometre pipeline to the Forvie North subsea wellhead, itself connected to the Alwyn North processing platform. The additional output should enable the Alwyn facilities to continue producing at full capacity until early next decade. ­

- Angola’s Petroleum Minister, Desiderio Costa, officially inaugurated the deep offshore Dalia field at a ceremony also attended by Manuel Vicente, Chairman of Sonangol (Sociedade Nacional de Combustíveis de Angola), and Christophe de Margerie, Chief Executive Officer of Total. Located in the prolific Block 17, home to 15 discoveries, Dalia came on stream in December 2006. Production already exceeds 200,000 barrels per day and is expected to reach 240,000 barrels per day in the very near future. With proved and probable reserves estimated at close to 1 billion barrels, Dalia represented a total investment of more than $4 billion. The field comprises 71 wells—31 for water injection, three for gas injection and 37 producers tied into nine manifolds. The oil is pumped to a 300-metres-long, 60-metres-wide floating production storage and offloading (FPSO) vessel that can process 240,000 barrels per day of oil and has a storage capacity of 2 million barrels. Located 135 kilometres offshore in water depths ranging from 1,200 to 1,500 metres, Block 17 is Total’s main asset in Angola. It comprises four major areas: Girassol and Dalia, both in production; Pazflor, which is in the final bidding process before sanction; and CLOV, a fourth major production area based on the Cravo, Lirio, Violeta and Orquidea discoveries, whose development is currently being studied. Future production from these fields will come in addition to 500,000 barrels per day that will be pumped by summer 2007. Sonangol is the Block 17 concessionaire. Total E&P Angola, operator, has a 40% interest in Block 17, alongside partners Esso Exploration Angola (Block 17) Limited (20%), BP Exploration (Angola) Ltd. (16.67%), Statoil Angola Block 17 AS (13.33%) and Norsk Hydro Dezassete a.s. (10%).

• Downstream news:

• Business/Finance news:

­- The Board of Directors of Total Gabon, chaired by Jean Privey, met on March 20, 2007 and approved the final accounts for the year ended December 31, 2006. Net income in 2006 was $326.4 million, compared to $316.8 million in 2005. The oil production of the fields operated by Total Gabon amounted to 30.9 million barrels in 2006, compared to 35.7 million the previous year. Total Gabon’s share of the operated and non-operated oil produced (including the tax oil reverting to the Republic as per the profit sharing contracts) amounted to 24.4 million barrels in 2006, compared to 28.1 million barrels for fiscal year 2005, representing roughly 28% of the country’s total crude oil production. Revenues amounted to $1,279.3 million, representing an increase of 12.1%, or $138.4 million, compared to fiscal year 2005. The decline in the volumes sold was more than offset by higher prices for the crude oil marketed by Total Gabon, which averaged $59.08 per barrel in 2006 compared to $48.04 per barrel in 2005. Operational costs increased 15.9% to $977.6 million in 2006 due to the continuation of significant drilling and development activities, the ongoing program of large maintenance projects and higher oil service costs across the industry. The capital expenditure related to oil operations in 2006 was $130 million, compared to $139.4 million in 2005. ­

- Following media reports, Total believes it is important to clarify the Group’s position with regards to the ongoing French judicial inquiry into the company’s activities in Iran opened in December 2006 around the South Pars project signed in 1997 between Total and the NIOC (National Iranian Oil Company). Three Total employees, including Mr. de Margerie, Total Chief Executive Officer, will be heard by investigators of French financial police (BRDE). Total fully supports its employees and underlines that the agreements signed in 1997 were done so in accordance to applicable laws. Total is confident in the fact that investigation will establish the absence of any illegal activities and hopes that it will be conducted with serenity ­

- Total confirms that the interviews of Robert Castaigne, Chief Financial Officer of Total and Philippe Boisseau, Executive Vice President Gas & Power, with investigators of the French financial police (BRDE) were completed in the evening of March 21, 2007. Neither has been charged with any offence. After being held for questioning, Mr. Christophe de Margerie, Chief Executive Officer of Total, has left the judge’s office after being placed under formal investigation in proceedings related to a judicial investigation, initiated in December 2006. This investigation is related to the development of the South Pars project in Iran, for which Total entered into agreements with the National Iranian Oil Company (NIOC) in 1997. Once again, the Group expresses its full support for its employees and confirms that the agreements for the development of the South Pars project were entered into in compliance with applicable law. ­

- The new chief executive of Total, the French oil company, was questioned for a second time in six months over suspected kickbacks in Middle East energy deals. The executive, Christophe de Margerie, left, and two other executives were summoned for questioning in an investigation of an offshore gas deal with Iran, Total said, which denied any wrongdoing. Mr. de Margerie, who ran Total's Middle East operations at the time of the 1997 Iranian deal, is already under investigation in a separate inquiry of irregularities in United Nations sanctions in Iraq. Mr. de Margerie became chief executive last month. ­

- Problems increased for the French oil company Total when Christophe de Margerie, the chief executive, was put under formal investigation by French authorities, who are looking into allegations that the company paid kickbacks to win a gas contract in Iran during the late 1990s. ­

- Effective April 16, 2007, Jean-Jacques Mosconi is appointed Vice President Strategic Planning for the Group, succeeding Ian Howat, who is retiring. ­

- Effective April 1, Benoît LUC is appointed Senior Vice President, Strategy, Business Development and R&D, at Total Refining & Marketing, succeeding Jean-Jacques Mosconi, who has been appointed Senior Vice President, Strategic Planning for the Group. Effective March 1, Manuel OLIVIER succeeded Benoît Luc as CEO of Total Italia, which is part of Total Marketing Europe. Effective February 1, Momar NGUER succeeded Manuel Olivier as Vice President, Aviation Fuel, which is part of the Specialties business. ­

- The chief executive of Total, the French oil company, has no plans to resign despite a judge's preliminary corruption charges against him over a 1997 contract with Iran, the company said. ­

- Total's new chief executive Christophe de Margerie was formally placed under investigation last week on suspicion of paying bribes to win huge gas project in Iran; Total insists de Margerie is innocent and that company abided by all 'applicable law' in winning Iranian gas concession; analysts say Total's aggressive practices may indicate direction rest of industry is headed as shrinking reserves force companies to search harder for deals in difficult parts of world. ­

- On Wednesday, March 28, Total’s senior management and three European federations, EMCEF, FECCIA and FECER*, signed a Europe-wide agreement on support for creating or expanding small and medium-sized enterprises near the Group’s main European facilities. ­

- The French Oil Giant Total is fighting criminal charges that it is responsible for an oil spill that devastated much of the Brittany coast in 1999, hoping to avoid a conviction that carries a relatively modest fine but could expose it to enormous civil damages.


• Upstream news:

­­ - Total announces two new oil discoveries in the northern area of the Moho-Bilondo permit, which lies approximately 80 kilometres offshore Republic of the Congo in a water depth of 1,000 metres. The Moho Nord Marine-1 discovery well was drilled to a total depth of 2,465 metres and encountered an approximately 140-metres column of oil in high quality Upper Miocene reservoir levels. Drilled to a total depth of 2,340 meters around 1.5 kilometres from the first well, the Moho Nord Marine-2 discovery well encountered a different set of two Upper Miocene oil reservoirs that are connected to each other, one overlying the other. One contained a 78-metres column of oil in an excellent quality massive reservoir; the other, a 22-metres column of oil in a good quality massive sandstone reservoir. The wells were the second phase of the campaign to add resources to the current Phase 1 development of Moho-Bilondo, following the Mobi Marine 2 discovery in 2006, which will be connected to the Moho-Bilondo floating and production unit. ­

- Total announces that its wholly owned subsidiary, Total E&P USA, Inc., has been awarded 32 offshore exploration blocks in an oil and gas lease sale in Alaska. Award of these blocks is subject to final approval by the Minerals Management Service. Covering an area of around 750 square kilometres, the blocks are located around 40 kilometres off the northern coast of Alaska in an average water depth of 35 metres. The exploration period will last 10 years. Total E&P USA is considering conducting a seismic survey to identify the main prospects and possible drilling locations for the exploration wells.

• Downstream news:

• Business/Finance news:

­ - Total announces the filing today of its 2006 Registration Document (Document de Référence) with the French market regulator Autorité des Marchés Financiers (A.M.F.). ­

- On April 10, 2007, Total S.A. filed its Annual Report on Form 20-F for the year ended December 31, 2006 with the U.S. Securities and Exchange Commission (SEC). ­

- Effective April 10, François Carcaud-Macaire has been appointed Vice President, Regional Development*, succeeding Guy Sallavuard. Effective April 16, Guy Sallavuard has been appointed Executive Director of the Total Corporate Foundation for Biodiversity and the Sea, replacing Bernard Tramier, who is retiring.


• Upstream news:

­­ - Total announces that it has finalised the agreements for its entry into two exploration blocks in the deep offshore Angola in the framework of the licensing round 2005/2006 organised by Sonangol E&P. Total takes a 30% interest, as operator, in the block 17/06, alongside Sonangol P&P (30%), SSI Seventeen (27.5%), Falcon Oil (5%), ACR (5%), and Partex (2.5%). Sonangol E&P is the concessionaire of block 17/06. ­

- Sociedade Nacional de Combustíveis de Angola (Sonangol) and Total E&P Angola, a wholly owned subsidiary of Total, announce two new oil discoveries with the tenth and eleventh exploration wells drilled on Block 32 in the ultra deep waters of the Angolan offshore. Drilled in a water depth of 1,594 metres, the Cominhos-1 well encountered Upper and Lower Oligocene oil bearing reservoirs. The well was tested from a selected Lower Oligocene interval and produced at a rate of 6,258 barrels per day of oil 32°API. This discovery is located in the north-eastern part of Block 32, approximately 18 kilometres north of the Caril-1, discovery made in 2006. Drilled in a water depth of 1,883 metres, the Louro-1 well found both Miocene and Oligocene oil bearing reservoirs. This discovery is located in the Southern part of Block 32, approximately 4.5 kilometres west of the Salsa-1 discovery made in 2006.

• Downstream news:

• Business/Finance news:

­ - First Quarter 2007 results released. ­

- 2007 General Meeting Report released. ­

- Thierry Desmarest re-elected Chairman of Total's Board of Directors


• Upstream news:

­­ - Total announced that it has signed a memorandum of understanding with Venezuela’s ministry in charge of energy and petroleum to transform operating company Sincor, formed by the project partners, into a mixed company. The agreement is in line with the law of February 26, 2007, passed by presidential decree, on transforming strategic joint ventures in the Faja region, known as the Orinoco Belt, into mixed companies. Under the memorandum of understanding, Total’s interest in Sincor will be reduced to 30.323% from 47%, while PDVSA’s will increase to 60%. Statoil’s interest will be 9.677 %. The agreement also sets out the indemnification that will be paid to Total, which was determined after a negotiation based on the value of the assets. The Venezuelan National Assembly has until the end of August to approve the terms and conditions of the transformation. ­

- Sonangol, the Angolan state oil company, as concessionaire, and Total, as operator, announce that the Angola’s deepwater Rosa field in Block 17 started production on June 18. Discovered in January 1998 at some 135 kilometres off the coast of Angola in water depths of 1,350 metres, the Rosa field is located some 15 kilometres away from the Girassol Floating Production Storage and Offloading (FPSO) vessel to which it has been tied back. It is the first deepwater field of this size to be tied back to such remote installation and in such water depths. Rosa, with proven and probable reserves amounting 370 million barrels in 100%, will maintain the FPSO’s production plateau at 250,000 barrels per day until early in the next decade. The Rosa field will comprise 25 wells, including 11 for water injection and 14 producers, which will be tied into four manifolds. The subsea installation consists of 64 kilometres of insulated production flowlines (Pipe in Pipe) and of 40 kilometres of water injection lines linking the Rosa to the Girassol FPSO. An innovative riser tower docked nearby the FPSO takes the fluid over 1,200 metres from the sea floor up to the surface.

• Downstream news:

• Business/Finance news:

­ - Catherine Enck who has been in charge of the media office at Total since 2000, joins the direction of Institutional Relations where she will be in charge of relations with nongovernmental organisations and civil society organisations. Isabelle Desmet joins Total starting July 16, 2007 and will be in charge of the Group’s media relations. Ms. Desmet comes to the Group from EADS where she was the Corporate Communications Director, France.


• Upstream news:


- Total announces that Total Gabon and the Republic of Gabon have signed an agreement to renew for 25 years the convention of establishment, which expired on June 30, 2007. The convention of establishment defines, among other things, the legal and tax system governing Total Gabon’s concessions, operating licenses and crude transportation installations. It covers 17 concessions and operating licenses representing an area of nearly 1,500 square kilometres and more than 60% of Total’s share of output in Gabon (more than 50,000 barrels per day in 2006). The system was thoroughly updated to promote exploration and development of oil and gas resources and to support oil and gas production in Gabon. Total is therefore considering additional development of the Anguille field, wholly owned by Total Gabon, which came on stream in 1966. A final investment decision could be made at the end of 2007. This project would add more than 100 million barrels of proved and probable reserves and 30,000 barrels of oil per day in first half of next decade.

- Total announces that the Dolphin Gas Project is now producing natural gas from Qatar and is exporting it to the United Arab Emirates. The partners in the Project, Total, 24.5%, Mubadala Development Company, on behalf of the Government of Abu Dhabi, 51%, and Occidental Petroleum, 24.5%, are grouped together in the company Dolphin Energy Limited. Dolphin is the largest natural gas project ever developed between two countries in the Gulf. It involves the development of natural gas reserves from Qatar’s giant offshore North Field, via two unmanned production platforms. The gas is treated onshore at the plant built by Dolphin Energy in Ras Laffan in Qatar. Gas production for export will ramp up to 2 billion cubic feet of gas per day in early 2008. The long term customers for Dolphin gas are ADWEC (Abu Dhabi Water & Electricity Company), UWEC (Union Water & Electricity Company) in Fujairah, DUSUP (Dubai Supply Authority) and OOC (Oman Oil Company).

- Gazprom’s acting Chief Executive Officer Alexander Ananenkov, General Director of OOO Sevmorneftegaz Yury Komarov, and Chief Executive Officer of Total Christophe de Margerie have signed a Framework Agreement for Cooperation in the Development of the First Phase of the Shtokman Gas Condensate field. In accordance with the Agreement, the parties will set up a Special Purpose Vehicle (SPV) to organize the design, financing, construction and operation of the Shtokman phase one infrastructure. The SPV will own this infrastructure for 25 years from field commissioning. Gazprom will have a 75% participating interest in the SPV and Total will have 25%. Upon completion of phase one operations, Total will transfer its share to Gazprom. The Agreement provides for the possibility for other foreign partners to join the project up to a 24% participating interest at the expense of the Gazprom’s share. Gazprom owns 100% of the Shtokman license holder (OOO Sevmorneftegaz). It will also retain all hydrocarbons marketing rights. The first phase of development is intended to produce 23.7 BCM/year of natural gas. Deliveries of pipeline gas are expected to commence in 2013 and the first LNG will be delivered in 2014. The relationship between the SPV and OOO Sevmorneftegaz will be based on a contract under which the SPV will bear all financial, geological and technical risks related to the production of gas, condensate and LNG. An agreement has been reached to start joint project implementation activities already in July 2007.

- Nigerian National Petroleum Corporation (NNPC) and Total, through its subsidiary Elf Petroleum Nigeria Limited, operator of the NNPC/EPNL Joint Venture with a 40% interest, announce the launch of the Phase 2 of Ofon Field Development Project. The field is located offshore east of Nigeria in OML 102, around 50 kilometres from the coastline, in a water depth of about 40 metres. Ofon field came on stream in December 1997. The additional reserves (proved and probable) to be developed during this phase are estimated to be over 350 million barrels of oil equivalent. The additional reserves should allow an increase of oil output by around 60,000 barrels per day to around 100,000 barrels per day by the end of 2010. In addition of existing facilities, new installations consisting of a processing platform, three drilling platforms and an accommodation platform for more than 120 people should be built during Phase 2 of the field development. The new central complex is expected to come on stream in 2010, with development drilling continuing subsequently. The new phase of the field development project will eliminate gas flaring in Ofon, in line with the policy of the Federal Government of Nigeria and give support to the NNPC/EPNL Joint Venture meeting its gas commitments. Gas will be monetized through the NLNG plant. In addition, all produced water will be re-injected into the reservoir. In line with Total’s commitments, the Ofon 2 project will contribute significantly to Nigeria’s local content policy in terms of construction works as well as training of Nigerian engineers, technicians and other professionals.

- Total announced that its operating subsidiary in Nigeria, Elf Petroleum Nigeria Limited (EPNL), has signed an agreement with Nigeria’s Conoil Producing Limited to acquire a 40% interest in offshore Oil Mining Lease (OML) 136. Conoil, the most important indigenous Nigerian petroleum company, holds the remaining 60% stake. The Nigerian authorities have granted the necessary approvals. Covering an area of 1,295 square kilometres, OML 136 lies around 60 kilometres offshore in water depths of 80 to 300 metres. EPNL will be the technical advisor. Conoil, which has started operation in 1990 and operates six permits in the Niger Delta, remains the operator of OML 136. Both parties will jointly conduct additional exploration of the lease, as well as appraisal and development of any discoveries. A total of fourteen wells have already been drilled in OML 136, producing two large natural gas discoveries, Toju and Akarino. Appraisal of Toju, possibly followed by Akarino, will determine the block’s development potential. The acquisition is in line with an integrated strategy of developing upstream natural gas resources that can be monetized via downstream projects, in particular liquefied natural gas production projects. In Nigeria, Total is active in the LNG business through its participations in Nigeria LNG (15%) and in the Brass LNG (17%) project, as well as Obite and Afam power generation projects. Following on the heels of the acquisition of an interest in OMLs 112 and 117 in 2006, this entry into the OML 136 will bolster Total’s onshore and offshore gas production portfolio in Nigeria.

- Total announced that its fully-owned Nigerian subsidiary, Elf Petroleum Nigeria Limited (EPNL), has finalized the acquisition of a 36% interest in deep offshore Oil Prospecting Lease (OPL) 247, operated by Chevron. OPL 247 lies around 150 kilometres offshore southeast Nigeria in water depths of 1,000 to 1,500 metres. It is located near the main deep offshore operations currently being developed by Total. 3D seismic data has been collected and is being interpreted to prepare drilling of an initial well.This acquisition extends Total’s acreage deep offshore Nigeria, where it has acquired extensive expertise operating five blocks near OPL 247. These include OML 130 (Akpo and Egina), OPL 221, OPL 222 (Usan) and OPL 223. Total and its partners will benefit from the Group’s experience in the area and from potential significant synergy in future exploration work and developments.

- Total announces the acquisition of a 100% interest in two exploration permits off the northwestern coast of Australia following a licensing round of Australian authorities. Covering a respective area of 5,150 and 5,685 square kilometres, Blocks WA-402P and WA-403P are located roughly 200 kilometres offshore in a water depth of 100 metres. Exploration of the blocks is scheduled to begin in 2008.

- French oil company Total agrees to form consortium with Gazprom to develop one of world's largest natural gas deposits offshore in Arctic, indication that major oil companies are willing to continue working in Russia despite risk that their property will be nationalized; field holds enough gas to meet all European demand for seven years; deal comes after two similar, large investments in Russia were partially nationalized in last six months; Total will be junior partner while Russian government will retain control; deal gives Total no claim to underlying reserves of natural gas; Total will own 25 percent of operating company that will develop Shtokman field about 340 miles north of Russia's Arctic coast.

• Downstream news:


- Total announced that it has begun construction of two new units at the Lindsey Oil Refinery, near Immingham, in the United Kingdom:a hydrodesulphurization (HDS) unit with a capacity of 1 million metric tonnes per year; a hydrogen production unit (SMR -Steam Methane Reformer) necessary for the desulphurization process. Representing an investment of around €300 million, the project will at peak employ 600 people at the refinery. Commissioning is scheduled for 2009. The units will increase Total’s production of ultra low sulphur diesel, for which demand is growing steadily, and will substantially increase the refinery’s capacity to process less expensive sour crudes. ­

- Following a call for tenders, Total has been selected to build a petrochemical complex in Arzew, near Oran, Algeria, in partnership with Sonatrach. The project encompasses the construction of an ethane cracker and three product lines. The cracker will have a capacity of 1.4 million metric tons per year. The feed gas will come from southern Algerian fields. The cracker will produce around 1.1 million metric tons of ethylene per year, which will be processed into 410,000 metric tons of monoethylene glycol, 350,000 metric tons of high density polyethylene and 450,000 metric tons of linear low density polyethylene, mainly for export. The investment required is estimated at around $3 billion. Development design will be launched shortly, with commissioning of the units scheduled in about five years.

• Business/Finance news:

- 102 students from 24 nations arrived at the Total Summer School near Paris on Sunday, July 1 to enjoy a multicultural experience and deepen their knowledge of the world’s major energy issues. Invited by Université Total, the students will share a week of study, exchange and discussion with university experts and senior managers from Total. The program is designed to help Total’s international subsidiaries strengthen their ties and exchanges with the academic world. Ranging in age from 20 to 29, the 102 students represent 80 schools and universities around the world that have been identified as important training grounds in the Group’s host countries and growth markets. Total Summer School also contributes to Total’s objective of giving its teams and management a more international profile. Some 30 energy specialists, geopolitical experts and managers from Total will moderate discussions, present key energy issues and challenges and share their knowledge of economics, geopolitics, the future of energy, climate change, and corporate social responsibility with the students.

- Aleksandr I. Medvedev, the deputy director of Gazprom, has floated the idea of allowing foreign energy companies to take an equity stake in an operating company that will develop a large offshore natural gas field in the Russian Arctic. Mr. Medvedev's comments suggest a softening of the Russian monopoly's position on the Shtokman field, which could be used to supply liquefied natural gas to Europe and the East Coast of the United States. Last October, Gazprom froze talks with five foreign companies seeking a role in the project and said it would develop the field alone. Now the Norwegian companies Statoil and Norsk Hydro, which are merging into one company, Total of France and ConocoPhillips of the United States are negotiating for a role in the development. In an interview with The Financial Times, Mr. Medvedev's suggestion that a ''new model'' of cooperation could be found for the big field holds the potential to ease tense relations between Russia and Western energy majors. Gazprom lacks the offshore technology to develop the field alone, industry analysts say.


• Upstream news:

­- Sociedade Nacional de Combustíveis de Angola (Sonangol) and Total E&P Angola, a wholly owned subsidiary of Total, announce a new oil discovery with the eleventh exploration well on Block 32 in the ultra deep waters of the Angolan offshore. Drilled in a water depth of 1700 metres, the Colorau-1 well encountered Upper Oligocene oil bearing reservoirs. The well was tested at a rate of 2,130 barrels of oil per day through a 32/64” choke. This discovery is located in the north-eastern part of Block 32, approximately 16 kilometres north east of Manjericão. Complementary technical studies are being carried out to fully evaluate these promising drilling results, and further exploration drilling is underway and planned across the block. Sonangol is the concessionaire of Block 32. Total holds a 30% interest as Operator. Other partners in Block 32 are Marathon Oil Company (30%), Sonangol E.P. (20%), Esso Exploration and Production Angola (Overseas) Limited (15%) and Petrogal (5%).

- Total announces a significant new oil discovery in its ultra-deep offshore block Mer Très Profonde Sud (MTPS), which lies approximately 170 kilometres offshore Republic of the Congo in a water depth of 2,000 metres. The Cassiopée Est Marine-1 discovery well was drilled to a total depth of 3,330 metres and tested at 5,600 barrels of oil per day. The evaluation of the reserves related to this discovery is underway. Following Andromède (2000), Pégase Nord (2004) and Aurige Nord (2006), this latest drilling success is the fourth oil discovery in the MTPS permit. It strengthens Total's exploration strategy in the Republic of Congo aiming at building an economically viable pole of development in this ultra-deep water permit. The field development studies will be launched once the related reserves are assessed. Awarded in May 1997, the MTPS block extends over more than 5,000 square kilometres, with water depths ranging from 1,300 to 3,000 metres. Total, through its subsidiary Total E&P Congo, is the operator with a 40% interest, alongside partners Eni Congo (30%) and Esso Exploration and Production Congo (Mer Très Profonde Sud) Limited (30%).

- Total announces that it has made a new oil discovery in deep water Block 14, within the Lower Congo Basin, offshore Angola. The discovery well, Malange-1, was drilled in 266 metres of water to a total vertical depth of 4,743 metres and encountered around 65 metres of reservoir full of oil. The well was tested and flowed high-quality crude at a rate of 7,669 barrels of oil per day. Malange-1 is the 11th exploration discovery made in Block 14 since 1997. The discovery will be followed by further drilling in addition to geologic and engineering studies to appraise the field. Total holds a 20% interest in Block 14 alongside Cabinda Gulf Oil Company Limited (operator, 31%), Sonangol P&P (20%), Eni (20%) and Galp (9%). Sonangol, Sociedade Nacional de Combustívies de Angola, is the concessionaire of the block.

- Total announced that it has received approval from the Vietnamese government to acquire a 35% interest in the production sharing contract for offshore exploration Block 15-1/05, alongside PetroVietnam Exploration and Production (PVEP – operator, 40%) and SK Corporation of South Korea (25%). Covering an area of 3,840 square kilometres, Block 15-1/05 is located roughly 40 kilometres offshore in a water depth of 40 meters, in the Cuu Long Basin near the Su Tu Den, Su Tu Vang, Su Tu Trang and Su Tu Nau discoveries. 2D seismic surveys have already been conducted on the block. Under the terms of the contract negotiated with PetroVietnam, Phase 1 exploration will be launched before the end of the year and will include 800 square kilometres of 3D seismic acquisition and two wells. The agreement also calls for stepped-up international cooperation between PetroVietnam and Total, particularly in exploration.

• Downstream news:

o- Total announces that it has reached an agreement to sell its 70% interest in the Milford Haven refinery in Wales to its partner Murco Petroleum. Upon completion of the transaction, Murco will be the sole owner of the 5.3-million-ton-per-year facility and the sole employer of the refinery workforce. The transaction is expected to be finalized by the end of the year. The divestment in the Milford Haven refinery will allow Total to concentrate its U.K. refining operations at the wholly-owned Lindsey Oil Refinery. With a capacity of 10 million metric tons, the Lindsey Oil Refinery matches Total’s marketing needs in the U.K. The Group recently embarked on a €300-million capital investment program to meet growing demand for low-sulfur diesel.

• Business/Finance news:

- Pierre Barbé, currently Senior Vice President, Crude Oil Supply & Trading, is appointed Senior Vice President, Trading & Shipping, effective October 1, succeeding François Groh. He will also sit on the corporate Management Committee.

- Total Gabon: Net income in the first half of 2007 was down 2.8% to $184.1 million compared to first half of 2006, whereas the average selling price of Gabonese crude oil decreased by 3.5%. The selling price of the crude oil (Mandji and Rabi Light) marketed by Total Gabon averaged $58.53 per barrel in the first half of 2007, compared to $60.68 in the prior-year period, while sales contracted 1.4% to $705.9 million. Higher crude oil transportation revenues mostly offset the 4.8% decline in the volumes sold and the slight decrease in selling prices. Total Gabon's net share of the operated and non-operated oil produced (including the tax oil reverting to the Republic as per the profit sharing contracts) amounted 64,300 barrels per day in the period, compared to 68,000 barrels per day in first-half 2006. The 5.6% decrease in production can be attributed primarily to the natural decline of fields, which was not offset by new production or well workovers. The availability of facilities was similar to that in first-half 2006. The capital expenditure related to oil operations in first-half 2007 was $122.2 million, up from $48.2 million in the same period in 2006. Full-year expenditure is expected to be more than double the figure for 2006.

- Mr. Kouchner’s trip, the first to Iraq by a French minister since the invasion, renewed interest in reports that the French oil company Total may seek a stake in Iraqi oil fields. This month, the French news media reported that Total and one of its American rivals, Chevron, were seeking to jointly explore Iraq’s fourth largest oil field. But Mr. Kouchner’s office said that no oil executives had accompanied him to Iraq and that economic interests were not the focus of the trip. Previously, France had limited its involvement in postwar Iraq to forgiving almost $5.5 billion in debt that Iraq owed it and using its permanent seat on the United Nations Security Council to vote for a greater role for the international body. Selling the idea of increased involvement in Iraq to the French people may prove difficult. Even within Mr. Kouchner’s Foreign Ministry, some diplomats remain skeptical of his initiative, warning that it could put France at greater risk of a terrorist attack.


• Upstream news:

­- Total announces a significant new gas condensate discovery in block 205/5a in approximately 610 metres of water, some 100 kilometres North West of the Sullom Voe Terminal on the Shetland Islands. Total, with a 47.5% interest, is the operator of this block awarded end 2004, alongside partners Eni UK Limited (22.5%), DONG E&P (UK) Limited (20.0%) and Chevron North Sea Limited (10.0%). The Tormore discovery well 205/5a-1 was drilled to a total depth of 3936 metres and tested at 32 million cubic feet per day of gas with a condensate gas ratio of 75 barrels per million cubic foot. This discovery lies 15 kilometres south west of the Total-operated Laggan discovery, which was successfully appraised in 2004.

- Total confirms that it has filed a declaration of commercial discovery with the Brazilian authorities for the ultra-deep offshore Xerelete (formerly Curió) discovery. Discovered in 2001 by Total, then operator, the field extends over two blocks, Block BC-2, in which Total has a 41.2% interest alongside Petrobras (operator) and Devon, and Block BMC-14, in which the Group has a 50% interest alongside Petrobras (operator). Located in the prolific Campos Basin, 250 kilometres offshore Rio de Janeiro, Xerelete contains relatively heavy oil (17° to 20° API). The field is Brazil’s deepest discovery to date, lying in 2,400 metres of water.

- Total announces that the Snøhvit gas field, in the Barents Sea, has started production. Total holds an 18.4% interest in this project, which is operated by Statoil (33.53%). The partners are Petoro (30%), Gaz de France (12%), Hess (3.26%) and RWE-DEA (2.81%). Natural gas produced offshore in a 310-340 metres water depth on the Snøhvit field is sent onshore through a 143 kilometres multiphase pipeline to a 4.2 million tonnes per year liquefied natural gas (LNG) plant at Melkøya, near Hammerfest, in northern Norway, where it is processed. The LNG will be shipped to European and US markets. The CO2 extracted from the natural gas is re-injected in a Snøhvit field reservoir. Contractual LNG deliveries are scheduled to start in the fourth quarter of 2007. Gas production is expected to ramp up to a plateau in 2008 of nearly 5.7 billion cubic metres per year (550 million cubic feet per day). Nearly 23,000 barrels per day of condensate and liquefied petroleum gas (LPG) will also be produced at plateau in the Melkøya plant. The Snøhvit project is the first gas development in the Barents Sea and has involved the construction of the first LNG plant in arctic conditions. In order to market its one billion cubic meter per year own share of natural gas production, Total has chartered on a long term basis a newly built LNG carrier designed to operate in artic conditions, with a 145,000 cubic metres capacity of LNG.

• Downstream news:

- Total has sanctioned construction of a 1-million-ton-per-year desulfurization unit at its Leuna refinery in Germany. Scheduled for commissioning in fall 2009, the new unit will supply the domestic market with ultra-low sulfur home heating oil. The €120-million investment will further enhance the performance of the Leuna refinery, which is already one of the most efficient in Europe. With a capacity of 11.4 million tons per year, the facility has extensive deep conversion capacity allowing it to process sour crude oil without producing heavy fuel oil.

- Qapco, the joint-venture between Industries Qatar (80%) and Total Petrochemicals (20%), has successfully started, in August 2007, its expansion project at its ethane cracker of Messaied in the South-East of Qatar. Launched in 2003, this expansion project has added a parallel train of 200 kt per year of ethylene bringing the total ethylene capacity of the cracker to 720 kt per year. The investment of this new unit amounts to around 230 million US dollars. In addition to feeding both of Qapco’s low density polyethylene (LDPE) plants (400 kt per year), the cracker’s ethylene will also serve as a feedstock for its contemplated third LDPE line (250 kt), scheduled to start-up in the beginning of the next decade.

• Business/Finance news:

- The Board of Directors of Total, chaired by Thierry Desmarest, met on September 4, 2007 and approved an interim 2007 dividend of 1 euro per share. This amount is equal to the final dividend paid in May 2007 and represents an increase of 15% compared to the interim dividend paid in November 2006. The interim 2007 dividend will be paid on November 16, 2007.


• Upstream news:

­- Total announces two new gas discoveries in the southern part of the offshore Mahakam block, some 45 kilometres from Balikpapan in Indonesia. These discoveries lie a few kilometres from the Stupa field and strengthen the potential of this field. A development plan for the Stupa field was submitted in July 2007 to the Indonesian authorities. Both drilled in about 60 metres water depth, the two wells East Mandu-1 and West Stupa-1 respectively encountered 164 and 72 metres of good quality gas bearing reservoirs. These two discoveries are planned to be developed in connection with the development of the Stupa field which shall be sanctioned in the coming months for an entry into production expected by 2012. The drilling of the well East Mandu-1 was particularly sensitive regarding the control of pressures and fluids. Its successful completion was allowed by Total’s technological capacities and the Group’s experience gained as operator of the offshore Mahakam block for the last 36 years. These works were carried out with the Indonesian company PT Apexindo Pratama Duta Tbk, with which Total has five drilling rigs in operation in Indonesia. Total is operator of the Mahakam block with a 50% interest alongside partner INPEX (50%).

- Total announces that its wholly owned subsidiary, Total E&P USA Inc., was the high bidder on 12 deep and ultra-deep water exploration blocks in the Central and Eastern Gulf of Mexico Lease Sale 205. Total E&P USA Inc. will operate five blocks in the Garden Banks area, three blocks in the Green Canyon and four blocks in Walkridge with a 100% working interest. All twelve leases are around 25 square kilometres each. Award of these blocks is subject to final approval by the Minerals Management Service. This acquisition follows the acquisition of twenty blocks last year in the same areas of the Gulf of Mexico. It is in accordance with the company’s strategy to strengthen its portfolio in the Gulf of Mexico on focusing exploration efforts on prospects with high long-term potential.

- Total announces the acquisition of a 40% interest in three exploration permits northeast of Ichthys on the Australian Browse Basin jointly with Inpex (60%, operator). These interests were held by ConocoPhillips. This acquisition is subject to the approval of the Australian authorities. Covering a respective area of 1 628, 1 220 and 667 square kilometres, Blocks WA-341P, WA-343P and WA-344P are located roughly 200 kilometres offshore, in water depths varying from 50 to 250 metres.

• Downstream news:

- Total’s Marketing France Division* announced that it is having to adjust its organisation in response to a more challenging business environment and to the market decline in volumes and margins.To reduce fixed costs, increase efficiency and maintain the quality of customer service, the Marketing France Division plans to streamline its headquarters organisation and consolidate its regional operations on three sites in Nanterre, Nantes and Lyon. The plan will eliminate 177 jobs and create 22 others. It includes the transfer of the Marseille operations to Lyon. It does not call for any dismissals. At the same time, the Marketing France Division has initiated an action program to reduce its other operating costs and increase non-petroleum product sales in its service stations (convenience stores, carwash, etc.)

- Total announced the sale of the 10% interest in Interconnector (UK) Limited owned by its subsidiary Total Midstream Holding UK Ltd to Caisse de Dépôt et Placement du Québec. Interconnector (UK) Limited operates the cross-channel gas pipeline linking the United Kingdom to Belgium. Total’s capacity rights in the Interconnector will nevertheless remain unchanged.

- Total announces the start-up of a new polypropylene production line at its Daesan plant in South Korea, in which it owns a 50% interest in partnership with Samsung. Part of the important expansion project of the site launched in October 2005, the new unit, with a capacity of 300,000 tons per year, will bring the total polypropylene capacity of the plant to 554,000 tons per year. A major expansion of the naphtha cracker has also been recently completed with the revamping of the associated downstream units. Completed within budget and schedule and with an excellent safety record, the expansion works have boosted the ethylene capacity of the cracker from 600,000 tons per year to 820,000 tons per year. In parallel, one styrene monomer unit has been expanded from 380,000 tons to 600,000 tons per year which included the conversion of the ethylbenzene section from gas to liquid phase, and incorporating energy-efficient multi-effect distillation in the purification section. The styrene production in the Daesan facility is currently 850,000 tons per year. The expansion works on the naphtha cracker and styrene unit were completed at the end of May, and were brought on-line as planned in early June.

• Business/Finance news:

- The Fourth Entretiens de Port-Cros Symposium will open October 3, on the Île de Porquerolles to discuss “Climate Change and Biodiversity in Marine Ecosystems.” Organized by the Total Corporate Foundation for Biodiversity and the Sea*, in partnership with the Port-Cros National Park, the World Conservation Union, the National Oceanography Centre, Southampton, and the French Research Institute for Exploitation of the Sea (Ifremer), the symposium will run through October 5. Climate change is a phenomenon that is grounded in established scientific evidence but remains clouded by uncertainties, particularly with regard to quantitative assessments and the extent of its impact, which could affect the entire earth system, including climate physics and the ecosystem. Changes in marine ecosystems offer enormous opportunities for research. Observing and better understanding them should make it possible to find their causes and identify those resulting from climate change.

- Total announces the formation of the new company, Adria LNG, to study the construction of a regaseification terminal for liquefied natural gas (LNG) on the Croatian coast. The terminal will be located on the Croatian island of Krk in northern Adriatic, well positioned to access the European gas market and to receive LNG supply from a variety of sources. Total holds 25.58% in Adria LNG and is associated with E.ON Ruhrgas (31.15%), O.M.V (25.58%), R.W.E (16.69%) and Geoplin (1%). The new terminal will have an initial capacity of some 10 billion cubic metres (bcm) per annum which could be increased to 15 bcm per annum. It will be designed for LNG tankers carrying up to 265,000 cubic metres. Final investment decision for the project is expected end 2008 and first operation of the LNG receiving terminal in 2012.

- French explorer Jean-Louis Etienne* will unveil the Total Pole Airship at the Boussiron hangars of the Marseille Provence airport, marking a new step in his project to fly over the Arctic Ocean in April 2008. Organized as part of the fourth International Polar Year, the expedition is placed under the high patronage of French president Nicolas Sarkozy. Nathalie Kosciusko-Morizet, Secretary of Ecology, has accepted to be the airship’s sponsor and His Serene Highness Albert II of Monaco will attend the unveiling ceremony. With this exceptional adventure, Jean-Louis Etienne is writing a new chapter in the history of discovery. He and his international team have come together to measure the thickness of the Arctic sea ice for the first time so that the international scientific community will have a baseline from which to study the impact of human activity on the earth’s climate.


• Upstream news:

­- Total announces that the Thai authorities have approved the extension for ten years of the production period for Bongkot, the largest gas field in Thailand. Bongkot consists of Blocks B15, B16, and B17. With the extension, the Joint Venture partners are entitled to continue to produce gas and condensate from Block B15 until 2022 and from Blocks B16 and B17 until 2023. Existing developments on Bongkot were concentrated in the northern part of the licence (Greater Bongkot North). The Bongkot Field currently produces approximately 600 million cubic feet per day of natural gas and 18,000 barrels per day of condensate (about 20% of national gas consumption in Thailand). Three new gas discoveries should enter production in 2009 in the Greater Bongkot North (GBN) zone, allowing to extend the production plateau of GBN. After the success of four delineation wells drilled in 2007 in the Greater Bongkot South (GBS) zone, the Government decision to extend the production period should enable to launch a new development on this area in 2008 after an agreement is reached on the commercial terms on gas sales. This development will consist of a production platform, a living quarters platform and a number of wellhead platforms. It should increase the production volume by 300 million cubic feet per day, which will push Bongkot production capacity to approximately 900 million cubic feet per day at the beginning of the next decade. Bongkot has been on production since 1993, it is operated by PTT Exploration and Production Plc. (PTTEP), with a 44.45% interest. The remaining stakes are owned by Total (33.33%) and BG Asia Pacific Pte. Limited (22.22%).

- Total announces a new oil discovery in the ultra-deep offshore Mer Très Profonde Sud (MTPS) block, which lies approximately 185 kilometres offshore the Republic of the Congo in a water depth of 2,120 metres. Drilled to a total depth of 4,110 metres, the Persée Nord Est Marine-1 discovery well found six oil reservoir levels in the Miocene. Following Andromède in 2000, Pégase Nord in 2004, Aurige Nord in 2006 and Cassiopée Est in 2007, this new drilling success is the fifth oil discovery in the MTPS permit. It strengthens Total’s exploration strategy in the Republic of the Congo, aimed at building an economically viable development cluster in this ultra-deepwater permit. Awarded in May 1997, the MTPS block extends over more than 5,000 square kilometres, with water depths ranging from 1,300 to 3,000 metres. Through its subsidiary Total E&P Congo, Total is the operator with a 40% interest, alongside partners ENI Congo (30%) and Esso Exploration and Production Congo (Mer Très Profonde Sud) Limited (30%).

- Total announces that it has been awarded the Otway exploration license it applied for under the 2007 Exploration Licensing Round of the Chile’s Minister of Mine. Total will have a 100% interest in Otway Block. Covering an area of 5,965 square kilometres, this block is located in the foothills domain of the Magallanes Basin, immediately West to Punta Arenas, and around 160 kilometres West to onshore installations of Total Austral in Tierra del Fuego (Argentina). Under the terms of the contract, which should be signed in the coming months, Phase 1 of exploration will be launched in 2008 and will include 1,500 square kilometres of 3D seismic acquisition followed by the drilling of two wells.

- Total announces that it has assigned a 10% interest in the Joslyn project to INPEX Canada, a subsidiary of Japanese oil company INPEX Corporation. Located around 60 kilometres northwest of Fort McMurray in the Athabasca region of the Canadian province of Alberta, the Joslyn oil sands project is operated by Total. The first phase of the Joslyn project entered commercial production in late 2006, the bitumen is recovered using steam assisted gravity drainage (SAGD) technology, which involves injecting steam deep into the oil sands. Production should reach 10,000 barrels per day at plateau by 2009. At the same time, work is under way to prepare the mining operations phase, with production scheduled to begin by the middle of next decade. An application for the first 100,000 barrels of bitumen per day of the surface mining project was submitted to the regulatory agencies in February 2006. The production potential of the surface mining phases and of SAGD technology is currently estimated at 230 000 barrels per day by the end of next decade. The assignment of a 10% interest to INPEX covers the production lease and the associated pipeline system. INPEX also has a right to participate in the construction of the upgrader announced by Total in May 2007.

- Total announces that phase 1 of the Sisi-Nubi gas fields offshore East Kalimantan in Indonesia has come on stream. Lying roughly 25 kilometres from the Mahakam Delta in 60 to 90 metres water depths, the two fields are located in the Total-operated Mahakam and Tengah blocks. This first phase development of Sisi-Nubi includes the installation of three wellhead platforms, a reception facility and a subsea pipeline gathering network, all completed on schedule and within budget. Gas and condensate is then sent to the existing Tunu processing centre. From there gas is then piped to the Bontang LNG plant and condensates to the export terminal at Senipah. Both fields are characterised by multiple layers of poorly consolidated sands, and the 27 development wells to be drilled to complete phase 1 require advanced drilling techniques. Development drilling started in September 2007 and will enable to reach production plateau of some 350 million cubic feet per day (10 million cubic metres per day) within the next 18 months. Further development phases are foreseen later to extend the plateau period. Total operates nearly 2.6 billion cubic feet per day of gas production from the Mahakam block. Output will be maintained at this level at least through the early years of the next decade thanks to Sisi-Nubi’s production. The Mahakam block is also a top-tier oil and condensate producer, with output of nearly 90,000 barrels per day. Total operates the Sisi-Nubi fields with a 47.9% interest, alongside INPEX (47.9%) and Pertamina (4.2%).

• Downstream news:

- Photovoltech, a European leader in photovoltaic cell production, inaugurated a new production line at a ceremony attended by Kris Peeters, Minister-President of Flanders, Christophe de Margerie, C.E.O. of Total, and Gérard Mestrallet, Chairman and C.E.O. of SUEZ. Built at a cost of €30 million, the new line raises Photovoltech’s total production capacity to 80 MWp (1) a year from 20 MWp. The company is owned by Total, SUEZ and Imec. Taking advantage of the opportunity provided by the inauguration, Photovoltech also announced a further investment of €45 million to increase total production capacity to 140 MWp by 2009. Around 60 jobs will be created.

• Business/Finance news:

- From November 25 to 30, Université Total will welcome for the first time 52 professors from 44 universities in 21 countries* for a week of conferences and discussions on energy and education. The participants, most of whom specialize in scientific fields related to energy, or in economics or management, will share their views with some 20 Total senior executives and outside experts. The Total Energy & Education Seminar builds on existing initiatives launched by Total to help its subsidiaries around the world develop their relations with universities, which are a key training ground for Total’s businesses. One example is the Total Summer School for university students, founded in 2006. The Summer School’s second session, in July 2007, attracted 102 students of 24 different nationalities for a week of discussion on the future of energy, climate change and corporate social responsibility.

- On Sunday, November 25 in Beijing, Total will join the French Chamber of Commerce and Industry in China (CCIFC) in announcing the winners of the 2007 SMEs in China Awards (Prix PME-Chine). Created to encourage the development of French small and medium-sized enterprises (SMEs) in China, the awards recognize the boldness, professionalism and perseverance of SMEs and entrepreneurs that have successfully launched sustainable businesses in the country. Total is sponsoring a new award this year to recognize a second business or entrepreneur. The winner will receive the Group’s help, including office facilities and accommodation, in pursuing development projects. This is just one of several methods that Total has adopted to help drive economic growth in its host regions.


• Upstream news:

­- Sociedade Nacional de Combustíveis de Angola (Sonangol) and Total E&P Angola, a wholly owned subsidiary of Total, announce a new oil discovery with the fourteenth exploration well, Alho-1, drilled on Block 32 in the ultra deep waters of the Angolan offshore. Drilled in a water depth of 1,607 metres, the Alho-1 well encountered Oligocene oil bearing reservoirs. The well was tested from a selected interval and produced at a rate of 5,400 barrels per day. This discovery is located in the north-eastern part of Block 32, approximately 9 kilometres north west of the Cominhos-1 discovery made earlier this year. Complementary technical studies are underway to fully evaluate this discovery. Sonangol is the concessionaire of Block 32. Total holds a 30% interest as Operator. Other partners are Marathon Oil Company (30%), Sonangol E.P. (20%), Esso Exploration and Production Angola (Overseas) Limited (15%) and Galp Exploração (5%).

- Total announces that it has signed an agreement with Sinopec to farm into two onshore exploration blocks in Yemen with an interest of 40%. The agreement was recently approved by the Yemeni government. Block 69, which covers an area of 1,333 square kilometres, is located in central Yemen’s Marib Basin, which is home to the reserves that feed the Yemen LNG liquefied natural gas project. Block 71, which extends over an area of around 1,800 square kilometres, is located in eastern Yemen’s Masilah Basin, near Block 10, which Total has operated for 20 years. The two blocks had been held by Sinopec in partnership with state-owned Yemen General Corporation for Oil and Gas (YOGC) since 2005. Following the farm-in, Total has a 40% interest in the blocks, alongside Sinopec (45.5%, operator), YOGC (10%) and the Arabian Group of Companies (4.5%). 2D seismic has been shot on both blocks and a well is being drilled in Block 69.

- Twenty years ago first oil was produced from North Alwyn platform, in the UK North Sea. The Alwyn field (100% Total), which lies 440 kilometres north-east of Aberdeen was brought on-stream in November 1987. North Alwyn is currently one of the largest oil and gas processing platforms in the UK North Sea acting as a gathering hub for nearby fields with a production of around 140,000 barrels of oil equivalent per day. Since first oil, the North Alwyn hub has delivered over 900 million barrels of oil equivalent produced from the Alwyn field and from the satellite fields, including Dunbar, Nuggets, Ellon, Grant and Forvie. The latest addition to this success story is the Jura field, discovered in 2006, which will come on stream in 2008 with an anticipated production plateau of 45,000 barrels of oil equivalent per day. It should contribute to maintaining the plateau production until early next decade. Additional appraisal wells are planned and one is currently being drilled on Jura. The exploration and development programme that will be launched on the Alwyn Area in the coming three years represents an investment of around $800 million. This continuous evolution was possible thanks to the permanent application of the latest available technology in the fields of seismic acquisition and imaging, extended reach drilling, multi phase pumping, EOR, and subsea wells. Furthermore the integrated management of maintenance, integrity and new developments was found to be key to achieve a good performance of the asset. The Alwyn facilities were initially designed for a service of 20 years. To extend an efficient and safe operation beyond 2020, Total launched in 2004 an enhanced inspection and maintenance programme. In addition, major works have been completed to reduce the emission profile of the hub. The amount of investment in asset integrity and compliance with new regulations in Alwyn area over the five years period ending in 2008 will reach around $600 million.

- Total announces the start-up of commercial production in the first phase of the Surmont Project in Canada. The Surmont lease is located about 60 kilometres southeast of Fort McMurray in Alberta’s oil sands. Total holds a 50% interest in the project, which is operated by ConocoPhillips. Phase One of the project has a capacity of 25,000 barrels per day and it is expected to reach plateau production by 2012. Phase One development will be followed by Phase Two, which is slated for commercial start-up before the middle of the next decade. Phase Two will reach plateau production of 75,000 barrels per day, bringing production for both phases of Surmont to approximately 100,000 barrels per day. Future phases at Surmont are also under study. The initial Surmont pilot project began in 1997. In 2003, the partnership decided to launch the first phase of commercial development at Surmont using Steam Assisted Gravity Drainage (SAGD). SAGD is a method that involves the injection of steam deep into the oil sands. The steam melts the bitumen, which is then recovered in its liquid state and pumped to the surface for further processing. First steam was injected into the ground in June 2007 during Phase One, resulting in the first commercial production announced today. Total is also the operator of the Joslyn Lease with a 74% interest. The project will be mainly developed using surface mining technologies in two phases of 100,000 barrels per day each. A limited portion of the lease is already on stream using SAGD technology. The Group announced in November 2006 the first commercial oil. The production potential of the surface mining phases and of SAGD technology is currently estimated to 230,000 barrels per day. Total’s share of the aggregate production from Surmont and Joslyn should reach more than 250,000 barrels per day in the next decade.

- Total, as operator of the Block 17, announces the award of the principal contracts for the giant Pazflor oil development, the third development centre on Block 17, deep offshore Angola, following Girassol and Dalia. Drilling operations are planned to commence in 2009 and oil production is scheduled to start in 2011. Located about 150 kilometres off the coast of Angola and 40 kilometres north-east of Dalia, in depths of 600 to 1200 metres, the Pazflor development involves bringing four fields into production, Perpetua, Hortensia and Zinia (Upper Miocene), and Acacia (Oligocene), which were discovered between mid 2000 and early 2003. The Pazflor development covers 600 square kilometres with a north-south axis of over 30 kilometres.

• Downstream news:

- Christophe de Margerie, Chief Executive Officer of Total, and Mohamed Meziane, Chairman and Chief Executive Officer of Sonatrach, signed a framework agreement to build a petrochemical complex in Arzew, near Oran. The agreement follows on from the Memorandum of Understanding signed this summer by the two companies to jointly develop a petrochemical complex equipped with an ethane cracker and three product lines. Both parties have conducted feasibility studies, in particular to determine the location of the complex and unit capacity. As a result, technology tenders will be soon issued. The cracker will have a capacity of 1.4 million metric tons per year, with the feed gas coming from fields in southern Algeria. It will produce 1.1 million metric tons of ethylene per year, which will be processed into polyethylene (two units with a total capacity of 800,000 metric tons per year) and monoethylene glycol (550,000 metric tons per year). The products will be mainly for export, with some also sold in the domestic market. The investment required is estimated at around $3 billion, with commissioning of the units scheduled within five years.

- Total announces the start-up of a new distillate hydrocracker at the Wepec refinery in Dalian, China, in which the Group holds a 22.4% stake. Representing a total investment of $240 million, the new conversion unit increases the refinery’s annual diesel fuel production capacity by 40% to 3.5 million metric tonnes, to meet the growing needs of the Chinese market for low sulphur products.

- Total announces the Final Investment Decision for the Angola LNG Project. Total owns a 13.6% share of Angola LNG Limited alongside Sonagas (36.4%), Chevron (36.4%) and BP (13.6%). The project shareholders have authorized Angola LNG Limited to proceed with the construction and implementation of the Project following receipt of approvals from the Angolan authorities on 10 December 2007. The Angola LNG project will process approximately 1 billion cubic feet of associated gas per day from offshore producing blocks, particularly from Blocks 17 and 32 (operated by Total E&P Angola, a wholly owned subsidiary of Total), from Blocks 0, 14 and 31, in which Total E&P Angola has interests, from Blocks 15 and 18 as well as gas from non-associated gas fields dedicated to Angola LNG Limited. The offshore gas will be collected and transported to an onshore liquefaction plant to be built near the town of Soyo in the Zaire Province. The plant will produce 5.2 million tons per year of LNG together with related gas liquids products. It will also process and treat up to 125 million cubic feet per day of gas for the domestic market. First LNG from the project is expected in early 2012. LNG will be shipped by project-chartered vessels to the Gulf LNG Energy regasification terminal which will be developed near Pascagoula, Mississippi. Regasified LNG will be sold to the US gas marketing affiliates of the partners. Accordingly, Total Gas & Power North America will buy and market Total’s 13.6% share, around 100 million cubic feet per day.

- During the night of December 7 to 8, the very large crude carrier (VLCC) Samco Europe and a container ship were involved in a collision in international waters south of Bab el-Mandeb Strait, in the Gulf of Aden. Built by a South Korean shipyard, the Samco Europe is a new, double-hulled oil tanker delivered in April 2007. It is carrying a cargo of crude oil from the Persian Gulf to Europe. The collision did not cause any injuries or pollution. The structural damage was confined to the Samco Europe’s bow, and the cargo tanks were not affected. Owned by Samco, the ship flies the French flag and is operated by V.SHIPS France. The tanker is under time charter to Total, which owns the cargo it carries.

- The tanker VLCC New Vision was caught in the recent severe North Atlantic storm offshore Ireland. Built in South Korea and delivered in April 1994, the New Vision is a double-hulled VLCC flying the French flag. Operated by V.Ships France, it is time chartered by Total from Norwegian shipowner Viken. The tanker was en route from Mongstadt in Norway to Canaport in Canada. A bow compartment was damaged by the storm, taking the mooring system out of service. The rudder was also damaged. The vessel’s maneuvering ability is unimpaired, and the New Vision is now lying off Portugal, waiting to take on board equipment needed for repairs. The shipowner expects the repairs to be carried out next week. The vessel will then offload its cargo in a European port, where permanent repairs will be performed.

• Business/Finance news:

- Effective December 1, Odile de Damas-Nottin, Vice President, Recruitment & Careers with Human Resources and Corporate Communications, is appointed Vice President, Compensation, Employee Benefits and Expatriation. Philip Jordan, Chief Executive Officer of Total South Africa, succeeds her as Vice President, Recruitment & Careers.

- Kazakhstan wants to raise its stake or receive compensation for cost overruns and delays in the gigantic Kashagan offshore field, the largest oil find in more than three decades, the country’s president said. The president, Nursultan A. Nazarbayev, speaking after a meeting with foreign investors in the capital, Astana, also said that he was not seeking to replace Eni of Italy as project operator — deflating speculation that Kazakhstan wanted to assign the role to its state company, KazMunaiGaz, or to another company, possibly Exxon Mobil. The Kazakh authorities initially raised objections in July after Kashagan’s start-up expenses and overall costs nearly doubled, to a reported $137 billion from $57 billion, and the date for first production was pushed back to 2010, from 2005.Since then, the government and the companies involved have been negotiating a possible settlement.The Reuters news agency quoted Mr. Nazarbayev as saying that there are different ways to settle the matter — by giving Kazakhstan either a sum of money or a bigger stake in the project. The Kazakh president struck a conciliatory note, in a possible attempt to dispel fears that his country is exhibiting a growing nationalism. The talks have been extended twice and are now in a fifth month. A new deadline is now Dec. 20. The Kashagan consortium includes Royal Dutch Shell, ConocoPhillips, Total of France and Inpex Holdings of Japan. With some 13 billion barrels of estimated recoverable reserves, it is crucial to the West’s aspirations to develop oil suppliers beyond OPEC. Kazakh officials announced that all consortium members except Exxon Mobil had agreed to reduce their stake so that the share controlled by KazMunaiGaz could rise to 18.52 percent, from 8.3 percent, giving it the same share as the main consortium partners — Eni, Exxon Mobil, Shell and Total. Industry experts say that Eni was originally chosen to lead the project as a compromise between Exxon and Shell, which both lobbied heavily to become the operator. Reports from within the consortium now indicate that the partners are dissatisfied with Eni. The Kashagan field is considered one of the world’s most logistically and environmentally challenging projects. It is in a remote, shallow-water corner of the Caspian Sea, and contains high amounts of hydrogen sulfide, a deadly gas.

- Total announces the signature of a Memorandum of Understanding between Total E&P Indonesia and the Indonesian Ministry of Energy and Mineral Resources, on the sidelines of the UN Climate Change Conference. Under this agreement the Indonesia’s Agency of Research and Development for Energy and Mineral Resources will be allowed to access to important data from Total’s pilot project which is being implemented near Lacq in the South West of France. This project, one of the first in the world to include the whole chain from combustion to CO2 geological storage, is primarily intended to prove the technical feasibility of an integrated carbon capture and storage scheme. It should enable Total to contribute to the fight against global warming, and provide an efficient solution to help limiting the footprint of Total’s activities in Exploration and Production, Refining and Chemicals.

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