Total News - 2010

News summaries from TOTAL S.A. 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 that its subsidiary, Total E&P USA, Inc., has signed on December, 30, 2009 an agreement to enter into a joint venture with United States based Chesapeake Exploration, L.L.C., a subsidiary of Chesapeake Energy Corporation (NYSE:CHK) of Oklahoma City, Oklahoma, whereby Total acquires a 25% share in Chesapeake’s Barnett shale gas* portfolio located in the State of Texas. The assets have current net daily production of approximately 700 million cubic feet of natural gas and include approximately 300,000 net acres of leasehold, of which 90% are in the core area of the Barnett play. Total’s share of current production will be approximately 175 million cubic feet per day of natural gas (30 thousand barrels of oil equivalent), with forecast growth increasing Total’s share of production to over 250 million cubic feet per day of natural gas in future years. Total’s share of proven reserves will be approximately 0.75 trillion cubic feet of gas (130 million barrels of oil equivalent), with additional unproved reserves of approximately 1.6 trillion cubic feet (270 million barrels of oil equivalent).

- Total and ConocoPhillips announce the sanction of the Surmont Phase 2 SAGD (Steam Assisted Gravity Drainage) development in Canada. The project, slated to begin initial construction in 2010, will increase Surmont’s production capacity from 27,000 to 110,000 barrels of bitumen per day. The Surmont project is located approximately 60 kilometres southeast of Fort McMurray, Alberta, in the Athabasca oil sands region. Surmont is operated by ConocoPhillips Canada and is a 50/50 joint-venture with Total E&P Canada.

- Total announces that, within the framework of Iraq’s second petroleum bidding round organized by the Iraqi Ministry of Oil on December 12th, 2009, the consortium led by PetroChina Company Ltd signed on January 27, 2010 a 20-year Development and Production Service Contract with Missan Oil Company for the development of the Halfaya oil field. Total E&P Iraq holds a 18.75% interest in the consortium, alongside the operator PetroChina (37.5%) and partners Petronas Carigali Sdn. Bhd. (18.75%) and the State Partner South Oil Company (25%). The Halfaya oil field is located in the Missan governorate, 35 kilometres southeast of Amara city, and spreads across 30 kilometres long and 10 kilometres wide. The consortium intends to increase the current oil field production from 3,100 barrels of oil per day to 535,000 barrels of oil per day.

• Downstream news:

- Bernard Pinatel is appointed President, Total Adhesives (Bostik and Subsidiaries). Daniel Grasset is appointed President, Total Resins (Cray Valley, Sartomer and CCP). Francis Raatz is appointed President, Total Fertilizers (GPN and Subsidiaries).

- Total inaugurated Europe’s first end-to-end carbon* capture, transportation and storage demonstration facility, in Lacq, southwestern France, at a ceremony attended by Valérie Létard, France’s Secretary of State for Green Technology and Climate Negotiations. This technology will help to reduce greenhouse gas emissions from industrial facilities that use fuel oil, natural gas and coal, such as power plants, steel plants, cement plants and refineries. According to the Intergovernmental Panel on Climate Change (IPCC), carbon capture and storage has the potential to mitigate one-third of carbon emissions and could be used at 7,000 industrial plants worldwide by 2050.

- In response to declining petroleum product demand, Total will be gradually adjusting its logistics network in France. The process entails : Outsourcing the operations of five depots* to specialized logistics companies; Closing the Pontet depot in the Vaucluse region, southeastern France; Investing in the Port-la-Nouvelle petroleum product depot in the Aude region, south-central France, to double its capacity.

- TOTAL and ERG have signed an agreement to create a joint venture in the Italian marketing and refining business. The shareholder pact calls for joint governance as well as operating independence for the new entity. TOTAL and Erg will hold equity stakes of, respectively, 49% and 51%. Created through the merger of TOTAL Italia and ERG Petroli, the joint venture will be called TotalErg and will operate under both the TOTAL and ERG brands.

• Business/Finance news:

- Collège de France Appoints Nicholas Stern to the Sustainable Development, Environment, Energy and Society Chair for the 2009-2010 Academic Year. In 2008, Collège de France created a chair of sustainable development, energy and societal issues. Endowed for five years, the chair is held annually by an eminent, internationally recognized figure who will lecture on core sustainable development issues such as climate change and its impact on health and the economy; the impact of human activities on water and carbon cycles; food and nutrition; biodiversity; and the future of energy. Scientific, engineering and social science aspects will be considered.

February

• Upstream news:

• Downstream news:

- At a special meeting of the Central Works Council on February 1, 2010, to discuss the Flandres refinery’s current situation and long-term future, Total stated that it hoped to continue studies currently under way to secure the future of the site, reflecting its commitment to reaching a comprehensive and satisfactory solution in terms of operations and employment. In response to the structural, permanent decline in petroleum product demand affecting the refining industry, operations at Flandres were halted in September 2009. The market is not forecast to improve, which means that the scheduled five-year turnaround maintenance program cannot be performed in March 2010.

- Total, the French oil concern, has promised the government that it would not shut any more refineries in France as employees continued a strike to protest the permanent closing of oil processing at an idled plant near Dunkirk. Total also said that it would not shut its industrial site in Flanders as the company tried to break a stalemate with union representatives, the French industry minister, Christian Estrosi, said after meeting with the Total chief executive, Christophe de Margerie, in Paris. “Mr. de Margerie has guaranteed that there will be no other shutdowns of refineries in France, and for Flanders, whatever project is decided, there won’t be a closure of the industrial site,” Mr. Estrosi said. Workers at Total’s six French oil-processing plants and six of its 31 fuel-storage depots have been on strike since Feb. 17 to protest the company’s decision to stop processing oil at the Flanders plant. Union representatives have warned that a prolonged strike could lead to fuel shortages in France as early as this week. Total refineries and depots supply about half of the demand in France. “It’s deadlocked. We’re not going anywhere,” Charles Foulard, a representative of the Confédération Générale du Travail union, said about the negotiations when reached by telephone. The C.G.T. said the talks had been suspended, and it pledged to continue with its strike. Mr. Foulard said that the company appeared to be open to holding roundtable discussions on the future of refining in France. Total employees have criticized the company’s decision to scale back refining in Europe while expanding it in the Middle East. Mr. Estrosi reiterated that there would not be any job losses for refinery workers and said that Total had guaranteed to do everything to maintain industrial activity at the northwestern port of Dunkirk, so that all subcontractors working at the refinery would remain employed.

- Total’s senior management and labor unions met on February 21, 2010 to examine union conditions for ending the current strike. Senior management reaffirmed that it understood the concerns of employees at the Dunkirk refinery, which has been shut down since September 2009, and of employees at other refineries in France.

- Total’s senior management has brought forward the Downstream (Refining & Marketing) Central Works Council meeting to March 8 from March 29, responding proactively to the expectations of Flandres refinery employees and labor unions, who would like to see the meeting held as soon as possible to end the current dispute. The agenda for the rescheduled meeting comprises two items, a review of the situation of refineries in France today and information and discussion on the proposed repurposing of the Flandres refinery (financial package, support for employees, timetable). It is unchanged from the agenda approved jointly by the Chairman and Secretary of the Central Works Council for the meeting originally scheduled for March 29.

• Business/Finance news:

- The Board of Directors of Total met on February 10, 2010 under the chairmanship of Thierry Desmarest. It reviewed the Group’s accounts for the fourth quarter of 2009 and approved the 2009 consolidated financial statements, as well as the parent company financial statements and the proposed dividend to be submitted to the Annual Shareholders’ Meeting for approval.

- On January 1, Total combined its Institutional Relations, International Relations and European Affairs Divisions into a new Public Affairs Division, reporting to the Chief Administrative Officer.

March

• Upstream news:

- Total announces the signature of an agreement to acquire a 50% interest in Kazakhstan’s Concession held by OilTechnoGroup (OTG), the Kazakh subsidiary of Poland’s Petrolinvest. The roughly 5,500-square-kilometre onshore license presently being explored is located in northwestern Kazakhstan. The transaction, subject to the Kazakh government approval, broadens Total’s portfolio of acreage in Kazakhstan. As operator of the license, Total will proceed with a work program that includes reprocessing of seismic data and drilling of a well. A well has already been drilled on the license, with encouraging results.

- Total announces the launch of the Laggan and Tormore gas fields development in the offshore frontier region of the West of Shetland, subject to the United Kingdom Government’s Department of Energy and Climate Change approval. Total also announces the acquisition of the 10% interest in Laggan and Tormore previously held by Chevron North Sea Limited and the 20% interest previously held by ENI UK Limited. This brings Total’s interest in this project to 80% alongside partner DONG E&P (UK) Ltd.

- Total announces having obtained the Montelimar Permit in France by ministerial decree dated as of March 1st, 2010. This exploration permit, granted for a five-year period, covers a surface of 4,327 square kilometers that spans from the south of Valence to the region of Montpellier, in the south of France. This permit, which will be operated by Total, has been jointly attributed to Total and to a subsidiary of the American group Devon. Devon having decided at the end of 2009 to focus its activities in North America, Total also announced having acquired Devon’s French affiliate. Through this transaction, which is subject to ministerial approval, Total will hold a 100% stake in the license.

• Downstream news:

- EDF and Total announce the signature of an agreement whereby Total will reserve regasification capacity in the planned Dunkirk LNG terminal being developed by Dunkerque LNG, a wholly owned EDF subsidiary, and will also acquire an interest in the company. The agreement is part of EDF’s global search for partners to reserve regasification capacity in the terminal. With regasification capacity of between 10 billion and 13 billion cubic meters per year, the terminal being developed by Dunkerque LNG would be able to meet more than 20% of French natural gas demand. Dunkerque LNG will make the final investment decision in summer 2010, with a view to commissioning in 2014. The project remains subject to the necessary regulatory approvals, successful marketing and construction calls for tenders.

- In response to a structural decline in petroleum product demand, Total presented the Central Works Council with a plan to permanently shut down refining operations at its Dunkirk site, which will be repurposed. In order to ensure the site’s future and maintain jobs, Total will: Develop new refining operations support and petroleum logistics activities on the Dunkirk site; Partner French electric utility EDF in the implementation of the planned LNG terminal project for Dunkirk; Participate actively in local discussions on revitalizing the Dunkirk region’s economy. There will be no lay-offs. All employees concerned are guaranteed jobs with Total.

• Business/Finance news:

- The following pages contain information relating to the public offer by TOTAL S.A. in France (the “Offer”) on the shares of Elf Aquitaine. The Offer is being made exclusively in France. The Offer is not subject to registration or visa outside France. Holders of Elf Aquitaine shares located outside France may not participate in the Offer, except if the laws and regulations of the jurisdiction to which such holders are subject allow such participation. Participation in the Offer and the distribution of materials regarding the Offer may be subject to restrictions outside France. The Offer is not directed at persons who are subject to such restrictions, neither directly, nor indirectly, and may not be accepted in any manner by a holder located in a country where the Offer is subject to such restrictions.

- Tuesday, March 30, the Paris Court of Appeal handed down its judgment on the Erika. On the criminal front, the decision finds that Total was imprudent in implementing its vessel vetting process and orders Total to pay a fine of €375,000. However, on the civil aspects, the Court of Appeal decided that Total cannot be held as having deliberately taken a risk in chartering the vessel and therefore was not liable under the international conventions. As a result, Total is not liable for the civil damages awarded to the plaintiffs.

- A French appeals court confirmed a ruling that the oil giant Total and related parties were responsible for environmental damage caused by a disastrous oil spill from the tanker Erika off Brittany in 1999. The court upheld a judgment made in January 2008 by the Criminal Court in Paris against Total; Tevere Shipping, the Italian owner of the boat; the Italian shipping agent Panship Management and Services; and Registro Italiano Navale, or Rina, the Italian maritime certification company that had declared the boat seaworthy. They were judged liable for the damage caused by the incident, and claimants were initially awarded 192.8 million euros ($258.6 million). That amount was increased on Tuesday by the appeals court to just over 200 million euros. The beneficiaries include the French state, regional governments and environmental groups like the League for the Protection of Birds. In the ruling, the presiding judge, Joseph Valantin, confirmed that the accident was a direct consequence of corrosion on the boat “directly related to the lack of servicing,” for which he held Total responsible as the “real charterer of the boat.” The decision in 2008 was the first time that a French court had recognized the existence of ecological damage “resulting from an attack on the environment,” clearing the way for communities along the coastline to seek more money in damages from the French oil company over the wreck. The Erika case has had other repercussions. In its aftermath, the European Union imposed new controls on maritime safety, eliminating single-hull tankers like the Erika. The French Bureau of Inquiries into Sea Accidents ultimately blamed rust and a lack of maintenance of the tanker for the wreck. Alexandre Varaut, a lawyer representing the Vendée department and other local authorities in the area affected by the spill, welcomed the ruling. Yves-Marie Dalibard, a spokesman for Total, said the company planned to use a window of five days that it now has before deciding whether to seek an annulment of the ruling at France’s highest court, known as the Cour de Cassation. He said the appeal ruling, about 500 pages long, “is very complex, combining civil and criminal issues,” and intertwined with international conventions. So far, Total has paid 172 million euros in compensation to a range of private and government bodies in the Erika incident, as well as an additional 200 million euros to clean up the spill, Mr. Dalibard, said. He added that under the ruling, the company was not liable to pay any more compensation. The remaining 28 million euros should be paid by the other liable parties, he said. On Dec. 12, 1999, the aging tanker Erika sank in the Bay of Biscay, about 60 nautical miles, or 110 kilometers, off the coast of Brittany. About 400 kilometers of shoreline were polluted by the oil, causing a considerable impact in particular on the fisheries and tourism businesses. Mr. Varaut said the ruling could have broad consequences, as it confirmed the legal notion that polluters must pay compensation for environmental damage in the same way they do for other forms of economic damage to individuals or corporations. The fines from the initial ruling were also upheld: Total and Rina were fined 375,000 euros, and Giuseppe Savarese, the owner of the Tevere Shipping, and Antonio Pollara of Panship were each ordered to pay 75,000 euros.

April

• Upstream news:

- Total announces that its subsidiary, TEPA (Block 17/06) Limited, and Sociedade Nacional de Combustíveis de Angola (Sonangol E.P.), have discovered hydrocarbons in the north-eastern area of the deep offshore block 17/06. The Begonia-1 well is the second successful exploration well on Block 17/06, after the Gardenia-1 well. Drilled in a water depth of 453 meters, the well discovered hydrocarbons in reservoir of Miocene age and produced more than 6,000 barrels per day of high quality oil (36° API) during a production test.

- Total announces that its subsidiary, TEPA (Block 15/06), Limited, and its partners have made two important oil discoveries in Angola at the Nzanza-1 and Cinguvu-1 wells, in the deep waters of the Angolan offshore. Nzanza-1 and Cinguvu-1 wells, located in Block 15/06 some 350 kilometres North-West of Luanda, were drilled in a water depth of 1,400 metres. They reached a total depth of respectively 3,008 metres and 3,023 metres. Both wells encountered oil pay in sands of Lower Miocene age with good reservoir characteristics.

- Total E&P USA, Inc., a wholly-owned subsidiary of Total S.A., announces the transfer of its interests in three federal offshore lease blocks in the Gulf of Mexico to W&T Offshore, Inc., effective January 1, 2010. Under the terms of the agreement, W&T Offshore, Inc. will receive Total’s 64% interest in Viosca Knoll Blocks 822 and 823 (Virgo) and 100% interest in Mississippi Canyon Block 243 (Matterhorn). Virgo gas field was discovered in 1997 and started producing in 1999. Located in the continental shelf in a water depth of 345 meters, Virgo reached an average production of approximately 2,000 barrels of oil equivalent per day (boe/d) at year-end 2009. The Matterhorn oil and gas field was discovered in 1999 in a water depth of 850 metres. Production started in 2003 and reached an average production of about 5,000 (boe/d) at year-end 2009. In selling these non-strategic assets, Total finalises the reorganisation of its activities in the Gulf of Mexico, focusing on areas of growth in the deep offshore.

- Total announces the signing of an agreement for the sale of its interests in the Valhall (15.72%) and Hod (25%) fields, in the Norwegian North Sea, to BP. This transaction, amounting to 991 million dollars, is subject to partners’ consent and approval by relevant authorities in the upcoming weeks. Located 285 kilometers off the Norwegian coast in a water depth of 70 metres, Valhall was discovered in 1975 and started producing in 1982. This field reached an average equity production of approximately 8,000 barrels of oil equivalent per day (boe/d) in 2009. Hod, approximately 13 kilometres south of Valhall, was discovered in 1974. Production started in 1990 and reached an average equity production of about 1,000 boe/d in 2009.

• Downstream news:

- Total announces that the second train of the Yemen LNG natural gas liquefaction plant has started production. Combined with liquefied natural gas (LNG) production from the first train, commissioned on October 15, 2009, it will enable the Yemen LNG plant to reach its full capacity.

- Total announces that on April 1 it closed the sale of its consumer specialty chemicals business, Mapa Spontex, to U.S.-based Jarden Corporation for €335 million. Mapa Spontex is a global manufacturer and distributor of baby care and home care products, with leading positions in Europe, Brazil and Argentina. Its portfolio includes baby bottles and nipples, sold primarily under the NUK®, Tigex®, Lillo®, Fiona® and First Essentials® brands, as well as sponges, rubber gloves and cleaning products, sold primarily under the Mapa® and Spontex® brands.

- Total announces that it has joined the Positive Energy Consortium. Created in October 2008, the consortium brings together businesses - each an acknowledged expert in its field - working on the challenges related to the buildings of the future. Its aim is to reduce energy use in future office buildings, increase their capacity to produce energy from renewable sources, and optimize the carbon footprint of buildings over their life cycle. Total will lead the working group on integrating photovoltaics in office buildings. Photovoltaics technology can be used with other solutions to create positive energy buildings, which produce more energy than they use.

- Total participated in the national roundtable on the refining industry, sponsored by the French Ministry of Ecology, Sustainable Development and the Sea, on April 15, 2010. The Group reiterated its strategy, objectives and commitments to overcome the structural challenges affecting the refining industry in Europe and in France in particular.

- Total announces it has acquired an interest in Coskata, a Chicago-based company developing an innovative technology to convert syngas into fuels and chemical products using a biological process. This investment is part of Total’s strategy to prepare for energy transition, in particular by supporting the development of innovative start-ups through its Corporate Venture Activity. Created in 2006, Coskata is developing a platform technology to enhance the value of syngas produced from carbonaceous feedstock, in particular non-food biomass, converted into biofuels or biochemical products. The process is based on microorganisms selected for their ability to efficiently ferment syngas into valuable products. Coskata has already implemented its technology on a significant scale in a demonstration facility that produces bio-ethanol, progresses toward its commercialization, and advances its overall technology platform.

• Business/Finance news:

- The Annual General Shareholders’ Meeting (ordinary and extraordinary) of TOTAL S.A. will be held at the Palais des Congrès (2, place de la Porte Maillot, 75017 Paris, France) on Friday, May 21, 2010 at 10:00 a.m. The documents and information related to this meeting will be available to shareholders pursuant to applicable law, and will also be available on the Company’s Web site (www.total.com), under the heading Investors/Regulated Information in France/General Shareholders' Meetings - Preparatory Documents).

- The Paris prosecutor’s office confirmed that Total, the French oil giant, was being investigated in a corruption case linked to its role in the scandal-plagued oil-for-food program in Iraq. A spokeswoman for the prosecutor said that an investigating magistrate, Serge Tournaire, had placed the company under formal investigation — one step short of indictment — on Feb. 22 on suspicion of bribery, complicity in corrupting foreign officials and influence-peddling as part of the oil program. The spokeswoman, who asked not to be identified by name in line with her office’s policy, would not provide further details. Total said in a statement that “there is nothing to support these allegations” and that it was “confident” the inquiry would absolve it. The company emphasized that an independent report by Paul A. Volcker, the former head of the Federal Reserve, into the oil-for-food program had found no evidence of corruption by the company. The oil-for-food program was established by the United Nations in 1995 and was intended to let Baghdad sell oil outside the country in exchange for humanitarian goods, without allowing the Iraqi military to rearm after the Gulf War. It was wound down in 2003, the year of the American-led invasion of Iraq. The program delivered about $30 billion worth of humanitarian supplies and equipment, including $1.6 billion worth of spare parts and equipment for the oil industry, according to the United Nations. Mr. Volcker’s committee found that illegal surcharges on oil contracts were introduced by Baghdad and applied to shipments. It also found that the program had generated $1.8 billion in kickbacks for the government of Saddam Hussein. The investigation was initially reported by the French publication Les Échos and mentioned in Total’s 2009 annual report, released at the end of last week. Total, which is based in a suburb of Paris and is one of the largest European oil companies, said the case and the accusations were not new. “This formal investigation has been pronounced eight years after the beginning of the investigation without any new evidence being added to the affair,” it said. A French criminal investigation into the involvement of executives from Total and other figures in the program was opened in 2002, and completed five years later. In 2006, Christophe de Margerie, Total’s current chief executive, was held for questioning. He had been responsible for Total’s activities in the Middle East during the 1990s. The inquiry was subsequently picked up by a magistrate, Xavière Simeoni. But last autumn, the prosecutor’s office recommended that the case be dismissed. In France, the magistrate decides whether or not a case should be pursued, meaning Total may yet appear in court, although the prosecutor’s office can appeal such a decision. Specifically, Total said the new magistrate, Mr. Tournaire, was now examining whether Total bribed Iraqi officials to buy crude oil despite the imposition of an embargo at the time. It is also examining whether Total knowingly bought oil that Iraq reportedly provided to French intermediaries in exchange for influence with the French authorities. Total — as well as its longtime domestic rival, Elf Aquitaine, which it acquired in 2000 — has sought growth in its hydrocarbon business in countries like Sudan and Iran. It is the top-ranked Western oil company in Africa, and the second-largest in the Middle East, after Exxon. Despite Total’s healthy profitability, its reputation in France has been tarnished. For 2009, Total posted a net profit of 7.8 billion euros ($10.4 billion), down 44 percent from a year earlier. In a survey released in March by the agency Posternak-Margerit and the polling group Ipsos, Total ranked 30th among major French companies in terms of image perception, with 68 percent of respondents saying it had a bad image, a deterioration from a year earlier. Also last month, a French appeals court confirmed a ruling that Total and related parties were responsible for environmental damage caused by a disastrous oil spill from the tanker Erika off the coast of Brittany in 1999. So far, Total has paid 172 million euros in compensation to a range of private and government bodies in the incident, as well as an additional 200 million euros to clean up the spill. The company has recently been involved in a bruising industrial dispute with workers at one of its refineries in Dunkirk. The striking employees won some concessions from the company amid threats to choke off gasoline distribution across the country. In 2001, an explosion at a fertilizer factory in Toulouse, owned by a Total unit, resulted in a number of deaths.

- The Group confirms that it published its 2009 Annual Report, specifying that Total S.A. was placed under formal investigation on February 22, 2010 as part of a wider investigation in Paris being conducted into the Oil for Food program. Contrary to what has been claimed this morning in a French daily newspaper, this is not a new case. This formal investigation comes eight years after the initial investigation began and three years after it closed, with no new elements having been uncovered. The public prosecutor has already stated that earlier allegations against Total executives in this matter were unfounded and, in September 2009, asked that the case be dismissed. Nonetheless, Total S.A. is now being accused of bribery, complicity and benefiting from influence peddling by a new investigating judge in charge of this case since the end of 2009.

- The following pages contain information relating to the public offer by TOTAL S.A. in France (the “Offer”) on the shares of Elf Aquitaine. The Offer is being made exclusively in France. The Offer is not subject to registration or visa outside France. Holders of Elf Aquitaine shares located outside France may not participate in the Offer, except if the laws and regulations of the jurisdiction to which such holders are subject allow such participation. Participation in the Offer and the distribution of materials regarding the Offer may be subject to restrictions outside France. The Offer is not directed at persons who are subject to such restrictions, neither directly, nor indirectly, and may not be accepted in any manner by a holder located in a country where the Offer is subject to such restrictions. For regulatory reasons, access to information regarding the Offer is restricted. Persons that are residents of, or presently located in, the United Kingdom, the United States, Australia, Canada and Japan, or are otherwise deemed to be a U.S person, are restricted from accessing the information on this website related to the Offer.

May

• Upstream news:

- Total announces that it has signed an agreement with ConocoPhillips to acquire a 24.5% interest in the Arafura Sea and the Amborip VI blocks in the Arafura Sea, offshore Indonesia. With this agreement, ConocoPhillips, operator of those two blocks, will now hold a 75.5% working interest in the Arafura Sea block. In the Amborip VI block, ConocoPhillips will hold a 51% interest, OPIC Indonesia Corporation holding the remaining 24.5% interest. Lying in water depths ranging from 30 to 100 metres, the Arafura Sea and Amborip VI blocks each cover around 9,000 square kilometers. In each block, the first exploration well is planned to be drilled by end of 2010.

• Downstream news:

- Total announces the inauguration of the world’s largest olefin cracker based on ethane in Ras Laffan, Qatar. With a production capacity of 1.3 million tons of ethylene per year, the Ras Laffan Olefin Cracker (RLOC) will feed the new Qatofin polyethylene plant inaugurated in Mesaieed last November. Total Petrochemicals, through its participations in Qapco and Qatofin, joint ventures with Qatar Petroleum, holds 22.2% of RLOC. The other partners are Qatar Petroleum and Chevron Phillips Chemical Company. The ethane feedstock used in the Ras Laffan cracker comes from the North Field,a giant offshore gas field in which Total holds interests through the Dolphin and Qatargas I and II projects. The natural gas (methane) is treated for export in the liquefaction plants also based in Ras Laffan and the associated ethane produced at Dolphin will be valorized by the Ras Laffan cracker as raw material for the petrochemical industry.

- Championed by a consortium of French and European manufacturers and research organizations, the France Nord project, to transport and store carbon dioxide, has been selected by the French Environment and Energy Management Agency (ADEME) to help mitigate greenhouse gas emissions. The project will examine the feasibility of installing, in a sedimentary basin in the north central part of France, a carbon dioxide transportation and storage demonstration infrastructure to be potentially used by several CO2-emitting industries.

• Business/Finance news:

June

• Upstream news:

- Total announces that its subsidiary, Total Exploration & Production Nigeria Ltd, in association with Conoil Producing Limited, has discovered hydrocarbons in the central portion of the Oil Mining Lease OML 136, offshore Western Nigeria. The Agge-3B.T1 well aimed at exploring an undrilled compartment of the Agge structure. It was located in a water depth of 140 metres and reached a total depth of 2,710 metres. The well discovered several gas bearing reservoirs totaling a gross thickness in excess of 150 metres. A production test performed over the lower intervals yielded a production of 21 million cubic feet of gas per day on a 36/64’’ choke. Studies are ongoing to assess further development options for the Agge-3B.T1 well, together with other discoveries on the block.

- The completion of the information and consultation process allows Total to proceed with the permanent shutdown of refining operations at the facility in Dunkirk. The Court of Appeals’ ruling does not bar this.

- Total announces the acquisition of a 36% interest in the Block 72 production sharing agreement in Yemen. Operated by DNO Yemen AS (DNO), the 1,821-square-kilometre license is located in the southern part of the Masila Basin. The acquisition is subject to the approval of Yemen’s Ministry of Oil and Mineral Resources. Total and the original partners — DNO, TG Holdings Yemen Inc., Ansan Wikfs (Hadramaut) Limited and The Yemen Company (TYC) — plan to drill an exploration well in the fourth quarter of this year.

- Total announces the acquisition of a 20% interest from Shell in the BM-S-54 license in the Santos Basin. Shell holds the remaining 80% and keeps the operatorship. This acquisition is subject to approval from the Brazilian authorities. The offshore block, located about 200 kilometres south of Rio de Janeiro, covers an area of 700 square kilometres in water depth of approximately 2,000 metres.

• Downstream news:

- Total announces that its subsidiary Total Gas & Power USA (SAS) has acquired a 25.4% interest in U.S. startup AE Polysilicon Corporation (AEP), which has developed an advanced technology to produce polysilicon for photovoltaic panels. The acquisition is being made through a reserved capital increase. Founded in 2006 and based in Fairless Hills, Pennsylvania, near Philadelphia, AEP has developed an innovative, low-carbon, energy-efficient process, consuming substantially less energy than standard methods. It operates continuously to produce cost-competitive granular polysilicon. The initial phase of the state-of-the art polysilicon production facility is in the commissioning phase today and is scheduled to begin commercial production this year. When operating at full capacity, the initial phase will produce up to 1,800 metric tons per year of granular polysilicon.

- Masdar, Abu Dhabi’s multi-faceted initiative advancing the development, commercialisation and deployment of renewable and alternative energy technologies and solutions, has appointed the bidding consortium of Total and Abengoa Solar as a partner to own, build and operate Shams 1, the world’s largest concentrated solar power plant and the first of its kind in the Middle East. One of Masdar’s flagship projects, Shams 1 will directly contribute towards Abu Dhabi’s target of achieving 7% renewable energy power generation capacity by the year 2020. The joint venture between Masdar (60%), Total (20%) and Abengoa Solar (20%) will develop, build, operate and maintain the plant which will be located in Madinat Zayed, approximately 120 kilometres southwest of Abu Dhabi in the United Arab Emirates (UAE).

- Total, a major international oil and gas company, and Amyris Inc., which operates an industrial synthetic biology platform, announced a strategic partnership encompassing Total’s investment in Amyris and a wide-spectrum master development and collaboration agreement. Total has agreed to acquire approximately 17% equity interest in Amyris on a fully diluted basis, and will have the right to appoint a member of the Amyris Board of Directors.

- SAUDI ARAMCO TOTAL Refining and Petrochemical Company (SATORP), a company that is 62.5% owned by Saudi Aramco and 37.5% owned by TOTAL signed on June 24, 2010, the finance documents for US$8.5 billion of senior project finance facilities that have been secured for the Jubail refinery. The availability of the financing marks another important step in the progress of this 400,000 barrels per day world-class, full conversion refinery in Jubail, Saudi Arabia, which is scheduled to be operational in 2013.

- Total has been appraised of the ruling issued today by the French Douai Court of Appeals. The employee information and consultation process on the proposed changes at the Flanders refinery, which was ongoing at the time of the Court of Appeals hearing on May 28, was completed on June 24 after the employee representatives submitted their opinion.

• Business/Finance news:

July

• Upstream news:

- Total E&P Canada Ltd., a Total subsidiary, has signed an agreement with UTS Energy Corporation (UTS) to acquire UTS Corporation with its main asset, a 20% interest in the Fort Hills mining project in the Athabasca region of the Canadian province of Alberta. Under the terms of the agreement, UTS will transfer its assets, other than its Fort Hills interest, to a newly formed company and Total E&P Canada will pay a cash amount of 3.08 Canadian dollars (CAD) per share to acquire UTS. Taking into account the cash held by UTS and acquired by Total (CAD 355 million, equivalent to CAD 0.73 per share) the cost of the acquisition for Total amounts to approximately CAD 1.15 billion (ie CAD 2.35 per share).

- The following appointments at Total Exploration & Production were effective as of July 1, 2010: Michael Borrell, previously Vice President, Caspian and Central Asia, is appointed Senior Vice President, Continental Europe and Central Asia; He succeeds Arnaud Breuillac, who is appointed Senior Vice President, Middle East, replacing Ladislas Paszkiewicz; Ladislas Paszkiewicz succeeds Michel Seguin as Senior Vice President, Americas; Michel Seguin is appointed Special Advisor to the President of Total Exploration & Production.

- Total announces that its subsidiary, TEPA (Block 15/06), Limited, and its partners have made a new oil discovery in Block 15/06 with the well Cabaça SE-1, in the Angolan deep-offshore. The well, located in 470 metres of water depth and 100 kilometres from the Angolan shore line, encountered significant gross thickness oil bearing reservoirs in the Miocene series. Volumes estimates suggest that Cabaça SE could hold substantial volumes of oil in place, with a potential yet to be confirmed.

- Total announces the signature of an agreement to acquire Chevron’s 45.9% interest in Block 1 in the Joint Development Zone (JDZ). Total will operate the block in partnership with Addax Petroleum JDZ 1 Limited, Dangote Energy Equity Resources and Sasol Exploration and Production Nigeria Limited. The JDZ is governed by a treaty signed by Nigeria and Sao Tomé and Principe in 2001 for a period of 45 years. This transaction is subject to approval by relevant authorities. The license extends over an area of close to 700 square kilometres in water depths ranging from 1,600 to 1,800 meters. Within this licence, a discovery was made in 2006 (Obo-1 well). The proximity of the Total-operated licenses and facilities in Nigeria will enable cost reductions in developing the license’s resources.

- Total announces that it has received approval from the United Kingdom Department of Energy and Climate Change (DECC) and the Norwegian Ministry of Petroleum & Energy (MPE) to develop its Islay gas field in the Northern North Sea, 440 kilometres north-east of Aberdeen. The Islay field is located in Block 3/15 of the United Kingdom sector and partly across the median line in Blocks 29/6a and 29/6c of the Norwegian sector. Lying in a water depth of 120 metres, it has estimated reserves of near to 17 million barrels of oil equivalent and an estimated peak gas production rate of 2.5 million standard cubic metres per day plus associated condensates.

• Downstream news:

• Business/Finance news:

August

• Upstream news:

- As operator of Block 17, Total announces the launch of development of the CLOV project and the awards of the principal contracts. This project is the fourth development pole in Angola’s deep offshore Block 17, after Girassol, Dalia and Pazflor. Drilling will start in 2012 and first oil is expected in 2014.

• Downstream news:

• Business/Finance news:

September

• Upstream news:

- Total announces the signature of an agreement with Santos and Petronas to acquire a 20% interest in the GLNG project in Australia, for US$750 million dollars (as of June 1, 2010), Santos and Petronas transferring 15% and 5% respectively to Total. Upon completion of this transaction which is subject to the approval of the Australian Foreign Investment Review Board, the project will bring together Santos (45%, operator), Petronas (35%) and Total (20%). Pursuant to the agreement, Total shall join the whole integrated Liquefied Natural Gas (LNG) chain, with production from coal seam gas fields in Queensland, eastern Australia, to gas liquefaction in a dedicated plant in Gladstone on the eastern coast of Australia. The plant will have a capacity of 7.2 million tonnes a year (Mt/y). Pursuant to the agreement Total will have the commitment to offtake 1.5 Mt/y of LNG, depending however on the result of ongoing discussions between the GLNG project and several Asian buyers.

- Total announces the signature of a Deed of Amendment (DOA) with PETROLEUM BRUNEI on the Brunei deepwater Block CA-1, previously known as Brunei Block J. The DOA amends the original Production Sharing Contract of Block J signed in 2003 and allows PETRONAS Carigali Overseas and Canam Brunei, a wholly-owned subsidiary of Murphy Oil Corporation, to join the existing consortium. With the DOA in place, Total will remain the operator with a 54% interest, alongside partners BHP Billiton, Hess, PETRONAS Carigali Overseas and Murphy Oil. The Deepwater Block CA-1 covers an area of more than 5,850 square kilometres in the deepwater areas of Brunei in water depths ranging from 1,000 to 2,750 metres. It is located about 100 kilometres northwest of the coast of Brunei Darussalam.

- Total announces that its subsidiary, Total E&P Vietnam, and its partners on Block 15-1/05, have discovered oil in the Lac Da Vang prospect, located in the southern part of the block in the Vietnamese offshore. The Lac Da Vang exploration well is located approximately 125 kilometres to the East of the city of Vung Tau, about 65 kilometres off the coast, and was drilled in a water depth of 48 metres. The well produced up to 3,500 barrels per day of 43 API° oil during tests.

- Total announces the signature of an agreement with Pearl Oil (Sebuku) Ltd (“Pearl”), a subsidiary of Mubadala Development Company PJSC, to acquire a 15% interest in the Sebuku license, in which the Ruby gas discovery was made. Under the terms of the agreement, Pearl Oil, as operator, will retain a 70% interest, Inpex holding further 15%. Located 300 kilometres south of the Total-operated Peciko facilities, this license covers an area of more than 2,300 square kilometers, in water depths ranging from 50 to 200 metres. The Ruby plan of development was approved by the Indonesian authorities in July 2008 and the operator expects the field to come on stream in 2013, with a natural gas production target of 100 million cubic feet per day (around 1 billion cubic metres per year).

• Downstream news:

• Business/Finance news:

October

• Upstream news:

- Total announces the signature of a farm out agreement with Gazprom for the transfer of a 20% interest in the Ipati and Aquio licenses in Bolivia. Subject to the Bolivian authorities’ approval, the partnership on these licenses will be constituted by Total (60%, operator), Tecpetrol (20%) and Gazprom (20%). In 2004, the Group discovered the Incahuasi gas field in the Ipati license. The discovery appraisal is under way with the drilling of the X-1001 well on the Aquio permit. Both licenses are located 200 kilometres South of the city of Santa Cruz in the foothills of the Andean Cordilleras. Following the signature in September 2008 of a cooperation agreement between Total, Gazprom and Yacimentos Petroliferos Fiscales Bolivianos (YPFB), aimed at negotiating the exploration terms and conditions of the Azero block, this agreement strengthens the partnership between Total and Gazprom, both in Bolivia and internationally.

- Total announces that its affiliate TOTAL E&P Borneo and its partners made a significant new gas and condensate discovery in Block B offshore Brunei. Well ML-5, located in a water depth of 65 metres and around 50 kilometres from the coastline, was drilled 8 kilometres to the south of the Maharaja Lela / Jamalulalam field in a new, deep fault panel. It discovered gas with condensate in High Pressure / High Temperature formations (HP/HT). With a total vertical depth of 5,664 meters, the well is the deepest ever drilled in Brunei. 10 million cubic feet of gas and 220 barrels per day of condensate were produced during the test from a limited zone situated at 5,350 metres depth. This is the deepest successful test in South-East Asia. The gross thickness of the hydrocarbon bearing formation exceeds 800 metres.

- Total announces that its subsidiary, TEPA (Block 15/06) Limited, and its partners have made a new oil discovery with the Mpungi-1 well, in the Angolan deep-offshore. The well, located on Block 15/06 some 120 kilometres from the Angolan shore line and at a water depth of 1,050 metres, reached a total depth of 2,300 metres and encountered oil pay in both the Upper and the Middle Miocene sand reservoirs. During production tests, limited by the surface facilities, the Mpungi-1 well produced light oil at a flow rate in excess of 6,000 barrels per day.

- Total announces the signature of an agreement with Yam’s Petroleum to acquire a 60% interest in the CI-100 license. Through this agreement, Total becomes the project operator. Yam’s Petroleum retains a 25% interest and Côte d’Ivoire’s national oil company Petroci holds the remaining 15%. The transaction has been approved by the Côte d’Ivoire authorities. Covering an area of nearly 2,000 square kilometres, the CI-100 block is located about 100 kilometres south-east of Abidjan in water depths ranging from 1,500 to 3,100 metres. An initial 3D seismic survey has already been carried out by Yam’s Petroleum. Exploration work will include a new 1,000 square-kilometre 3D seismic survey, which will complete coverage of the block, and a first drilling, in 2012 at the latest.

• Downstream news:

• Business/Finance news:

- On October 28, 2010, the Board of Directors of Total decided to change its interim dividend policy and to adopt a new policy based on quarterly dividend payments. Since 2004, the company has paid an interim dividend in November and the balance of the annual dividend after its Annual General Meeting in May. The interim and final dividends related to the 2010 fiscal year will be paid according to this policy. The balance of the 2010 dividend will be paid following the May 2011 Annual Meeting, and the quarterly interim dividend payments related to the 2011 fiscal year will commence thereafter. On April 28, 2011, the Board will review Total’s March 31, 2011 financial statements and decide on the first quarterly interim dividend, which will be paid in September 2011.

November

• Upstream news:

- Total announces having finalized an agreement in principle with Perenco, an independent exploration and production French company, to sell its 75.8% equity in its upstream affiliate Total E&P Cameroun, a Cameroonian company which other shareholders include the national oil company – SNH (Société Nationale des Hydrocarbures – 20%) and Paris Orléans – Groupe Rotchshild (4.2%). This agreement is subject to the Cameroonian Authorities’ approval. Today, production from the mature fields operated by Total in Cameroun reaches 40,000 barrels per day (b/d), which represents an equity production of 8,000 b/d, or 0.3% of the Group’s total production

- Total announces that it has signed an agreement with the national oil company Petronas to acquire a 85% interest in the Block SK317B, offshore Malaysia. Under the terms of the agreement, Total will operate the Block alongside its partner Petronas Carigali holding the remaining 15% interest. The Block SK317B is located around 100 kilometres offshore Sarawak, in water depths ranging from 200 to 1,000 metres. It covers an area of more than 700 square kilometres. The work commitments during the exploration period encompass seismic data acquisition and deep offshore exploration drilling, an area in which Total enjoys a recognized expertise.

- Total announces that the Gabonese government has approved the acquisition by its subsidiary Total Gabon of interests in three onshore exploration licenses in the sedimentary basin of Gabon: A 50% interest in the Mutamba-Iroru license, alongside Vaalco. The 1,094 square kilometre license is located in southern Gabon, near the Atora field production facilities operated by Total Gabon. A 30% interest in the DE7 license alongside Perenco. Located in the Omboué region in central Gabon, the license covers an area of 2,175 square kilometres. Last, a 20% interest in the Nziembou license alongside Perenco and Tullow. The license extends over an area of 1,026 square kilometres and is located near the Rabi field.

- Total announces the launch of Phase 2 of the development of the West Franklin field, after receiving approval from the UK Government’s Department of Energy and Climate Change (DECC). The West Franklin field is located in Blocks 29/5b and 29/4d in the UK sector of the North Sea, approximately 240 kilometres East of Aberdeen. It was discovered in 2003 and began producing gas and condensates in 2007. In 2008, drilling of an appraisal well more than doubled the field’s estimated reserves and prompted the Phase 2 development. The West Franklin Phase 2 development is aimed at producing estimated reserves of 85 million barrels of oil equivalent (boe). It involves the drilling of three wells and the installation of a new platform tied back to the Elgin/Franklin facilities. This development will require an investment of around 1 billion USD. Production is expected to start by the end of 2013 and should reach 40,000 boe/day.

• Downstream news:

- Total and the Chinese energy group China Power Investment Corporation (CPI) announced their intention to build a coal-based petrochemical plant in China. The two companies signed a letter of understanding (LOU) in Paris during the state visit of the Chinese president, Hu Jintao, to study the construction of a world scale plant in coal-rich Inner Mongolia. Total will bring to this partnership its expertise in the Methanol to Olefins (MTO) and the Olefin Cracking Process (OCP) technology that Total Petrochemicals has tested extensively at its purpose-built semi-commercial plant in Feluy (Belgium). Total will also study solutions on how to capture and store CO2 using the know-how gained from its CCS pilot project in Lacq (France).

- Total announced the construction of a photovoltaic panel production and assembly unit at Composite Park in France’s north-eastern region of Moselle. With a surface area of 2,800 square metres, the plant will house two production lines for a total capacity of 50 megawatt peak (MWp)* representing about 220,000 photovoltaic panels per year. Construction is scheduled to begin in early 2011 and the first line (25 MWp) is expected to come on stream towards the end of the year.

• Business/Finance news:

- Total appoints Sonia Sikorav Chief Purchasing Officer

- The Total Foundation is providing €2.5 million in funding for the 12 Internat d’Excellence boarding schools created by the French Ministry of Education in 2009 and 2010. The funding was approved on October 8 by the board of the Fonds d’expérimentation pour la jeunesse, France’s youth development fund, at a meeting chaired by the Minister of Youth Affairs, Marc-Philippe Daubresse. The funds will be used for socio-cultural activities and personalized support for students and their families, reinforcing the innovative teaching and educational projects offered at each school.

December

• Upstream news:

- Total’s subsidiary Total E&P Canada Ltd. (“Total”) and Suncor Energy Inc. (“Suncor”) have signed several agreements to form a strategic oil sands alliance encompassing the Suncor-operated Fort Hills mining project, the Total-operated Joslyn mining project and the Suncor-operated Voyageur upgrader project. All three assets are located in the Athabasca region of the province of Alberta, Canada. Under the alliance, the companies will pool their combined interests in these projects, with the respective operator holding 51% and the other partner 49%. The agreements comprise four significant and related transactions: Total is acquiring 19.2% of Suncor’s interest in the Fort Hills project. Taking into account Total’s acquisition of UTS, finalized in October 2010, the company will have an overall 39.2% interest in Fort Hills. Suncor, as operator, will hold 40.8%. Teck Resources Ltd. continues to own its 20%. Suncor is acquiring 36.75% of Total’s interest in the Joslyn project. Total, as operator, will retain a 38.25% interest in the project, with Occidental Petroleum (15%) and Inpex (10%) holding the remaining 25%. Total is also acquiring a 49% stake in the Suncor-operated Voyageur upgrader project located near Fort McMurray. This facility of which construction was suspended in 2008 will have a capacity of around 200,000 barrel per day (b/d) of upgraded products and will process Total’s Fort Hills and Joslyn bitumen production. Work will resume once the front-end engineering design is updated in 2011. As a result of the terms of these transactions and the related net balancing of the portfolio, in particular to contribute to the past costs of the Voyageur project, Total will pay Suncor CAD 1,751,250,000 (one billion, seven hundred and fifty-one million, two hundred and fifty thousand Canadian dollars), with a value date of January 1, 2011. Suncor and Total have agreed to a joint commitment to develop Fort Hills and Voyageur in parallel so that both come on stream early 2016. The main engineering and procurement contracts for these two projects will be awarded in 2011. Both companies have also confirmed the Joslyn North Mine timetable, with production of 100,000 b/d commencing in 2017-2018, subject to receiving the necessary permits. The implementation of the agreements is subject to securing the necessary regulatory approvals from the Government of Canada and certain other approvals. As a result of the agreements, Total will no longer proceed with the planned construction of an upgrader in Edmonton.

• Downstream news:

- Collège de France has appointed Jean-Marie Tarascon to the Sustainable Development, Environment, Energy and Society Chair, created with the support of Total. With energy demand increasing rapidly due to global population growth and rising living standards, two major risks need to be managed: the leveling off of fossil fuel production and the worsening greenhouse effect. This is why scientists are concentrating their research on alternative energies. A key challenge related to the future energy mix will be the system’s ability to convert and store electricity and heat. For more than 20 years, the distinguished chemistry and electrochemistry researcher Jean-Marie Tarascon has focused his work on batteries.

- Total announced a plan to sell its photocure and coatings resins businesses to Arkema for a €550 million enterprise value. The transaction reflects Total’s strategy of refocusing its Specialty Chemicals activities. The assets to be divested include Cray Valley and Cook Composites & Polymers (CCP) coatings resins business and Sartomer’s photocure resins businesses, which together employ nearly 1,750 people in 13 countries. These aligned businesses produce specialty products for the paint, adhesives and industrial coatings markets and are forecast to generate revenue of around €850 million in 2010, an increase of 20% over the prior year.

- Total announced the signature of an agreement to acquire an additional 7.5% interest in Australia’s GLNG (Gladstone LNG) project from Santos for an amount of US $281.25 million. This will increase Total’s overall stake in the project to 27.5%. At the same time, South Korea’s Kogas has signed an agreement to join the project with a 15% stake and has also committed to lift 3.5 million tons per year (Mt/y) of Liquefied Natural Gas (LNG). Given the 3.5 Mt/y of LNG lifted by Petronas, the GLNG project has now firm offtakers for most of its two trains and a final investment decision on the two-train project will be made in January 2011. Kogas’ entry means that Total will no longer be committed to lift LNG from GLNG.

- Total announces it has acquired an interest in Elevance Renewables Sciences Inc., a Chicago-based company developing an innovative technology to convert renewable oils, such as vegetable oils, into low cost and high value, performance chemicals. This innovative process is based upon olefin metathesis, a Nobel Prize winning technology. This investment is part of Total’s strategy for energy diversification, in particular by supporting the development of innovative start-ups through its Corporate Venture Activity. Created in 2007, Elevance develops products that are aimed at serving numerous markets, including lubricants, fuels, personal care products, detergents and other specialty chemicals markets. Elevance is already building its first facility in Indonesia, in joint venture with Wilmar international, in order to implement its technology at industrial scale.

• Business/Finance news:

- Pursuant to the workplace gender equality agreement signed by Total Senior Management and representatives of Oil Business employees in France in 2010, Total has deployed tangible measures to promote gender equality. The Group’s other companies are negotiating their own agreements that will be implemented in the coming months, in accordance with each company’s scope and specific procedures. According to this agreement, the salaries of 2,300 women employees were increased by an average 3.7% as from October 2010. In addition to closing the wage gap between men and women, the measures taken cover hiring, promotion and work-life balance.