Total News - 2011

News summaries from Total 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 affiliate Total E&P UK has made a new gas and condensate discovery in the West of Shetland on the United Kingdom Continental Shelf, close to the currently under development Laggan and Tormore fields. The Edradour exploration well lies in block 206/4, 75 kilometres North West of Shetland in a water depth of 300 metres. The well reached a depth of more than 3,500 metres and encountered gas and condensate in a Cretaceous reservoir with good petrophysical properties. Full formation evaluation, including an extensive sampling programme, has been undertaken. Once the appraisal phase is completed, studies will be launched to consider the development of these new resources through the Laggan and Tormore facilities.

- Total and its partners Santos (operator), Petronas and Kogas announce the sanction of the GLNG project in Australia, representing a 16 billion dollars investment. The GLNG project consists of the development of coal seam gas fields, the construction of a 420 kilometres gas transmission pipeline and of a liquefaction plant of 7.2 million tons per year (Mt/y). First Liquefied Natural Gas (LNG) will be delivered in 2015 and plateau production of the LNG plant is expected to be reached in 2016 for more than 20 years. The signature of binding LNG off-take contracts with Petronas and in December 2010 with Kogas, secures an annual off-take of 7 million tons of LNG.

- Total announces that it has acquired interests in four exploration licenses in Argentina in partnership with YPF in order to appraise their shale gas potential. Located in the Neuquén Basin, the licenses were awarded by the provincial authorities for a six-year period. The four new blocks are the latest addition to the Group’s portfolio of assets in Argentina, which includes significant holdings in shale gas play. More specifically, Total has acquired: A 42.5% interest in both the Aguada de Castro and Pampa las Yeguas II licenses, which Total will operate. A 40% interest in the Cerro Las Minas license and a 45% interest in the Cerro Partido license which will be operated by YPF.

- Total announces discoveries from the Bilondo Marine 2 and 3 wells (BILDM-2 and BILDM-3), drilled in a water depth of 800 metres in the central area of the Moho-Bilondo license, approximately 70 kilometres offshore the Republic of the Congo. They follow the successful exploration wells Moho Nord Marine 1 and 2 drilled in 2007. Bilondo Marine 2 and 3 were drilled to a total depth of around 1,800 metres in the Tertiary series and flowed successfully. The Bilondo Marine 2 and 3 wells encountered a gross reservoir of 77 and 44 metres respectively. Neither well encountered water. The latest discoveries confirm Total’s confidence that an additional development hub is emerging as a direct extension of phase 1 which is already producing in the southern part of the Moho-Bilondo license. This first phase, brought on stream in 2008, was the first ultra-deepwater field to be developed in the Republic of the Congo. The field is currently producing 90,000 barrels per day from 13 subsea wells tied into a floating production unit (FPU). The oil is exported to the onshore Djeno terminal.

• Downstream news:

• Business/Finance news:

- Total announced the following appointments to its Management Committee, effective January 1, 2011: Arnaud Breuillac, Senior Vice President, Middle East, Total Exploration & Production. Michel Hourcard, Senior Vice President, Development and Operations Techniques, Total Exploration & Production and Senior Vice President for the Scientific and Technical Center in Pau. Jacques Maigné, Chairman and Chief Executive Officer of Hutchinson, Total Chemicals. Bernard Pinatel, Chairman and Chief Executive Officer of Bostik, Total Chemicals

February

• Upstream news:

- Total announces the start-up of the Itaú gas and condensate field located on Block XX (Tarija Oeste) 400 kilometres south of the city of Santa Cruz in the Andean Cordilleras foothills. The first phase of the development came on stream on February 2nd and is designed to produce 1.5 million cubic meters of gas per day (10,000 barrels of oil equivalent per day (boe/d)), which will be processed in the facilities of the neighboring San Alberto field. Itaú gas production will mainly be exported. The Block XX joint venture has also submitted for approval to YPFB a development plan which aims at increasing Itaú’s production from 1.5 to 5 million cubic metres per day by mid-2013 (about 35,000 boe/d). Total E&P Bolivie discovered the Itaú field in 1999. After having first conducted delineation operations between 2001 and 2003 and then supervised the first development phase of the field, Total E&P Bolivie sold on February 1st a participating interest on Block XX of 4% to YPFB Chaco and of 30% to Petrobras, to which was also transferred the operatorship. After completion of these transactions, Total E&P Bolivie will hold a 41% interest on Block XX.

• Downstream news:

• Business/Finance news:

- Total has announced the following appointments, effective March 1: Patrick Pouyanné, Senior Vice President, Strategy, Business Development and R&D in Exploration & Production, is appointed Deputy General Manager of the Chemicals Division and Deputy General Manager Petrochemicals. Olivier Cleret de Langavant, Senior Vice President, Finance, Economics & Information Systems in Exploration & Production, is appointed Senior Vice President, Strategy, Business Development and R&D in Exploration & Production. Isabelle Gaildraud, Senior Vice President, Human Resources & Internal Communication in Exploration & Production, is appointed Senior Vice President, Finance & Information Systems, in addition to her current role. Michel Hourcard, Senior Vice President, Development & Operations in Exploration & Production and Senior Vice President Delegate for the Scientific and Technical Center in Pau, is appointed Senior Vice President Development in Exploration & Production. Marc Blaizot, Senior Vice President Geosciences is appointed Senior Vice President Exploration.Pierre Bang, Managing Director, Total E&P Cameroun, is appointed Senior Vice President, Operations in Exploration & Production and Senior Vice President Delegate for the Scientific and Technical Center in Pau.

- The Board of Directors of Total met on February 10, 2011, under the chairmanship of Christophe de Margerie, Chairman and CEO. It reviewed the Group’s accounts for the fourth quarter of 2010 and approved the 2010 consolidated financial statements, as well as the parent company financial statements and the proposed dividend which will be submitted to the Annual Shareholders’ Meeting for approval.

- Total and IPIC have signed an agreement whereby Total will sell its 48.83% share in the capital of CEPSA. This sale will take place pursuant to a public takeover bid over the entire share capital of CEPSA that IPIC has undertaken to file with the Spanish Securities Commission CNMV. IPIC will offer 28 Euros per share of CEPSA and a dividend of 0.50 Euro per share shall be paid to existing shareholders. Total has undertaken irrevocably to tender its shares into the offer and will receive an amount of approximately 3.7 billion Euros. The transaction is conditioned on obtaining all requisite government approvals. IPIC, a wholly owned entity of the Government of the Emirate of Abu Dhabi, is currently a shareholder of CEPSA with a stake of 47.06%. CEPSA is the second largest Spanish oil company with a refining capacity of 528,000 barrels per day, a network of approximately 1,750 service stations in Spain and Portugal and a hydrocarbons production of approximately 55,000 barrels per day. CEPSA also operates in Petrochemicals, Gas distribution and Power.

March

• Upstream news:

- Christophe de Margerie, Total’s Chairman and Chief Executive Officer, was invited to meet the Russia’s President Dmitry Medvedev in Moscow. It gave them the opportunity to review the overall activities of Total in Russia. Christophe de Margerie highlighted the dynamism of relationships of the Group with Russian partners and expressed its optimism concerning Total’s future in Russia. In the evening, in presence of Russia’s Prime Minister Vladimir Putin, Christophe de Margerie signed with Leonid Mikhelson, Novatek’s Chairman and one of the main shareholders, two Memorandums of Cooperation to develop the cooperation between Total and the Russian company Novatek and its main shareholders. The cooperation will be developed around two transactions: Total will become the main international partner on the Yamal LNG project holding a 20% share. Novatek will hold a 51% interest in the project. Total will take a 12.08% shareholding in Novatek with the intent of both parties to increase the share to 15% within 12 months and to 19.40% within 36 months. The Yamal LNG project will develop the South Tambey field located in the arctic area of the Yamal peninsula. The resources of this condensate and gas field are estimated at approximately 44 trillion cubic feet of gas (1,250 billion cubic meters), allowing production of more than 15 million tons of liquefied natural gas (LNG) per year The project was declared of national interest by the Russian authorities, who took in 2010 a number of decisions to facilitate its implementation. With this project, Total (20%) will have access to proved and probable reserves of approximately 800 million barrels of oil equivalent (boe) within the licence duration and to a plateau production of about 90,000 boe per day in the next decade.

- Tullow Oil, the British energy company, said that it was selling stakes in its Ugandan oil exploration project to China National Offshore Oil Corporation and Total of France for $2.9 billion. Tullow is selling a one-third interest to each company and keeping a third for itself as it moves to fulfill a tax accord with the Ugandan government that will also require other payments. The asset sale is set to mobilize the development of the Ugandan field, which has been slowed by the dispute with the government. The disagreement arose over the capital gains involved in Tullow’s $1.5 billion acquisition of a Heritage Oil bloc in the same area last year. The basin stretches from Sudan in the north and down along Uganda’s western border with Congo, which runs through Lake Albert itself. Cnooc and Total will each pay half of the total price of the deal.

- Total announces the acquisition of a one-third interest in Blocks 1, 2 and 3A in Uganda held by a subsidiary of Tullow Oil plc, for $1,467M. Located in the Lake Albert region, these three licenses cover a total area of close to 10,000 square kilometres. Exploration and appraisal work has already discovered oil resources of over one billion barrels and Total estimates that the area’s remaining exploration potential is roughly similar. Following this acquisition, Total becomes an equal partner with Tullow and CNOOC in the blocks, each with a one-third interest and each being operator of one of the blocks. Subject to the decision of the Authorities, Total will be the operator of Block 1.

• Downstream news:

• Business/Finance news:

- Following the decision by the Board of Directors of Total S.A. on October 28, 2010 to carry out a capital increase reserved for employees, the Chairman and Chief Executive Officer, Christophe de Margerie, acting on behalf of the Board, has set the subscription period and price on March, 14th.

- Total’s Board of Directors met on March 25, 2011 under the chairmanship of Christophe de Margerie, Chairman and Chief Executive Officer. The Board examined requests to add proposed resolutions to the agenda for the Annual Meeting of Shareholders to be held on May 13, 2011. The resolutions considered were received after the publication of the Notice of Meeting on February 25, 2011. The Board of Directors decided to add a proposed resolution to the agenda, submitted by Total’s Central Works Council, concerning a change to the Company’s articles of incorporation

- The Registration Document (Document de référence) for the year ended December 31, 2010, was filed with the French Financial Markets Authority (Autorité des marchés financiers) on Monday, March 28, 2011. Copies of this document are available free of charge, pursuant to applicable law, and can be downloaded from the Company’s Web site (www.total.com) under the heading Investors/ Publications .

April

• Upstream news:

• Downstream news:

- SunPower (Nasdaq: SPWRA, SPWRB) and Total (CAC: TOTF.PA) announced that the two companies have entered into a broad strategic relationship to shape the future of the solar industry. Total Group will launch a friendly tender offer through a wholly owned subsidiary for up to 60 percent of SunPower’s outstanding Class A Common shares and 60 percent of SunPower’s outstanding Class B Common shares at a price of $23.25/share for each class. The offer price represents a 46 percent premium over the April 27th, 2011 closing price of SunPower’s Class A common stock and a 49 percent premium over the April 27th, 2011 closing price of SunPower’s Class B common stock, and values SunPower’s equity at $2.3 billion. In addition, Total will provide SunPower with up to $1 billion of credit support over the next five years. Following closing of the transaction, which has been approved by the boards of both companies, SunPower will continue to operate with its current management team

- Total SA, the European oil producer, agreed to buy as much as 60 percent of the SunPower Corporation for $1.38 billion, taking advantage of increased global interest in renewable energy. SunPower, a solar panel maker based in San Jose, Calif., described the acquisition price of $23.25 a share as a “friendly tender offer” in a statement after the close of regular trading. SunPower’s stock rose $5.62, or 36 percent, to $21.40 a share. “The fact that a global oil and gas giant like Total has made such a significant investment in a solar company is extremely encouraging for the entire solar industry,” said Shawn Qu, the chief executive and founder of the China-based Canadian Solar. “Total’s investment demonstrates that solar is really coming into its own as a viable energy market, and traditional energy conglomerates want to be part of that burgeoning growth.”

- Total announces the signature of an agreement with EDF ENR to acquire all of Tenesol’s operations (outside of France’s overseas departments and territories1), of which it already owns 50%. Tenesol’s operations in the French overseas departments and territories would continue to be equally owned by the Total Group and EDF ENR. Tenesol, which was created in 1983, is a top-tier solar energy operator in Europe, leader in the French market for large industrial and commercial photovoltaic rooftop solutions. Tenesol designs, manufactures, markets and operates photovoltaic energy systems. Tenesol enjoys wide recognition for its photovoltaic competencies, offering superior engineering and technical services. The company has a production capacity of 800,000 solar panels a year, or 170 megawatt peak2, at two plants, one in Toulouse, France, and the other in Cape Town, South Africa. The planned acquisition covers all Tenesol’s operations, with the exception of those in France’s overseas departments and territories, which employ more than 760 people in numerous countries and generated revenue of approximately €240 million in 2010.

• Business/Finance news:

- Total’s updated www.planete-energies.com site goes online. Its target audience is primary and secondary school students and teachers, as well as curious minds looking to understand energyTotal’s updated www.planete-energies.com site goes online today. Its target audience is primary and secondary school students and teachers, as well as curious minds looking to understand energy.

May

• 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. Drilled in a water depth of 445 meters, the Canna-1 well discovered hydrocarbons in reservoir of Miocene age and produced more than 5,000 barrels per day of high quality oil (33° API) during a production test.

- Total (30%) and partners BHP Billiton (45%, operator) and Chaoyang (25%) announce the start-up of the Phase 2 gas development of the Greater Angostura field with a design capacity of 280 million cubic feet of gas per day (7.9 million cubic metres per day). The Greater Angostura field includes oil and gas discoveries at Aripo, Kairi and Canteen. It is situated in the Block 2(c) approximately 40 kilometres off the northeastern coast of Trinidad, in 40 metres water depth. The first development phase, which started in January 2005, produces oil from Kairi and Canteen with the associated gas re-injected. The second phase consists in producing the gas principally from Aripo. A new gas production platform has been installed alongside the existing oil facilities. The project was delivered on schedule and within budget.

- Total announced an agreement with ExxonMobil to farm into the Chelm and Werbkowice exploration concessions with a 49% interest, subject to the approval of the Polish authorities. Under the terms of the agreement, ExxonMobil and Total will form a partnership operated by ExxonMobil, which retains a 51% interest. The entry into these concessions reflects Total’s commitment to expanding activities in unconventional gas, notably in Europe, a growth segment of the Group. Awarded for a period of five years from March 2009 and December 2008 respectively, the Chelm and Werbkowice exploration concessions are located in the Lublin Basin in southeastern Poland and cover 1,162 square kilometres and 995 square kilometres. The work program for each concession comprises acquisition of seismic data, drilling of an exploratory well and a production test if drilling results are encouraging.

- Total announced that it has signed an agreement with CNOOC Middle East (Qatar) Limited, a wholly-owned subsidiary of CNOOC International Limited, to acquire a 25% interest in Qatar’s Block BC (pre-Khuff) exploration license. CNOOC Middle East (Qatar) Limited will continue to be the operator with a 75% interest. Located 130 kilometers east of the Qatari coast, the offshore block covers an area of 5,649 square kilometers, with water depths ranging from 15 to 35 meters. The Block BC Exploration and Production Sharing Agreement (EPSA), entered into with the Government of the State of Qatar, stipulates that 2D and 3D seismic surveys will be conducted and that at least three exploration wells will be drilled by 2014.

• Downstream news:

- Total, the French oil giant, said that it would extend the deadline for its bid to take control of the American solar energy firm SunPower to June 14 from May 31. The French company said last month that it would pay $1.4 billion for 60 percent of SunPower’s stock, valuing the company at $2.3 billion. Total said it had notified the European Commission of the proposed merger in a filing that must be reviewed by the agency. A spokesman for the company said extensive consultations with the European competition regulator had delayed the filing, which resulted in an extension of the deadline by the customary period of 10 business days. In its announcement, Total said that 1.1 percent of SunPower’s Class A common stock, and 0.7 percent of its Class B stock, had been tendered. While the acceptance rate for the Total offer has been low, the spokesman said, the percentage reported was not significant since most shareholders wait until the final days to tender their shares.

- Total (CAC: TOTF.PA) announced that it has just filed its Form CO with the European Commission relating to its all-cash tender offer to purchase up to 60 percent of the outstanding shares of Class A common stock, and 60 percent of the outstanding shares of Class B common stock, of SunPower (Nasdaq: SPWRA, SPWRB) for $23.25 per share. Total announced therefore an extension of its all-cash tender offer. The offering period, previously scheduled to expire on May 31, 2011, is now scheduled to expire at 12:00 midnight, New York City time, on June 14, 2011, consistent with the terms of the previously announced tender offer agreement with SunPower.

• Business/Finance news:

June

• Upstream news:

- Total announces the launch of the Ekofisk South and Eldfisk II projects offshore in the southern Norwegian North Sea on Production Licence (PL) 018. Total holds a 39.90% interest in the licence. The plan for development and operation for each project has been approved by the Norwegian authorities. The Ekofisk South project will include a new platform (Ekofisk 2/4Z) and a new subsea facility (Ekofisk 2/4VB) at the Ekofisk complex. The platform will have a 40 years design life and a capacity of 70,000 barrels of oil equivalent (boe) per day. The new facilities will enable the drilling of 35 production and 8 water injection wells to further develop the Ekofisk field and increase oil recovery. Production start-up is expected early 2014. The Eldfisk II project will include a new platform (Eldfisk 2/7S) at the Eldfisk complex and substantially upgrade the existing facilities on the Eldfisk field. The new platform will have 40 years design life and a capacity of 70,000 boe per day. It will provide accommodation, new process facilities, and will enable the drilling of 30 production and 9 water injection wells to further develop the Eldfisk field and increase oil recovery. Production start-up is expected in 2015.

• Downstream news:

- Total announces the signing of an agreement with Silex Gas Norway AS, a wholly owned subsidiary of Allianz, to sell its entire stake in Gassled (6.4%) and related entities for a price of NOK 4.64 billion (approximately US$ 870 million). Gassled is a joint venture formed in 2003 to transport natural gas from fields on the Norwegian Continental Shelf to Continental Europe and the UK. Gassled’s infrastructure assets comprise approximately 7,980 kilometres of natural gas pipelines and associated platforms, processing plants and terminals in Norway, Belgium, France, Germany and the UK.

- Total (CAC: TOTF.PA) and SunPower Corp. (NASDAQ: SPWRA, SPWRB) announced the success of Total’s all-cash tender on SunPower to create a new global leader in the solar industry.

- Total SA's $1.3 billion takeover of SunPower Corp will help the U.S. solar panel maker double its market share over the next 18 months, SunPower Chief Executive Tom Werner said. Total brings the financial backing, geographical footprint and research and development expertise that will allow the fast-growing U.S. company to pursue an "aggressive" development strategy based on organic growth, Werner told Reuters. Werner and Philippe Boisseau, head of gas and power at Total, were speaking in an interview after announcing that shareholders representing a majority of SunPower's capital had agreed to tender their shares to the French energy group. Holders of about 52.2 percent of Class A common stock and 74.2 percent of Class B common stock have tendered their shares in a firm and definitive offer, the companies said.

- SunPower shares fell more than 15 percent after the announcement, trading at $17.53 in midafternoon, a move that Werner deemed "unsurprising" due to the number of investors who had bought shares just so they could take part in the tender.

- Oil major Total SA's $1.3 billion takeover of SunPower Corp will help the U.S. solar panel maker double its market share over the next 18 months, SunPower Chief Executive Tom Werner said. Total brings the financial backing, geographical footprint and research and development expertise that will allow the fast-growing U.S. company to pursue an "aggressive" development strategy based on organic growth, Werner told Reuters. Holders of about 52.2 percent of Class A common stock and 74.2 percent of Class B common stock have tendered their shares in a firm and definitive offer, the companies said. SunPower shares fell more than 15 percent after the announcement, trading at $17.53 in midafternoon, a move that Werner deemed "unsurprising" due to the number of investors who had bought shares just so they could take part in the tender.

- Total has signed a sale and purchase agreement to sell most of its Marketing assets in the United Kingdom, the Channel Islands and the Isle of Man to Rontec Investments LLP, a consortium led by Snax 24, one of the leading independent forecourt operators in the UK. The assets included within this agreement consist of Total’s UK retail network, comprising 810 Total-branded service stations, its Butler heating oil business, the associated logistics infrastructure, as well as its Channel Islands and Isle of Man businesses.

• Business/Finance news:

- The Total Foundation’s ongoing support for search and rescue workers has been stepped up with the creation of a national training center for “Société Nationale des Sauveteurs en Mer”1 (SNSM) in Saint-Nazaire, France.

July

• Upstream news:

- Total announced the acquisition of Esso Italiana’s interests respectively in the Gorgoglione concession (25% interest), which contains the Tempa Rossa field, and in two exploration licenses located in the same area (51.7% for each one). The acquisition increases Total’s equity stake in the operated Tempa Rossa field to 75%. The transfer of interests is subject to the approval of Italian authorities.

- French oil major Total SA estimates an investment of $10 billion is needed to develop the Moho Bilondo Nord offshore project in Congo Republic, its chief executive has been quoted as saying. Total said last year that the Moho Bilondo Nord field contained about 300 million barrels of oil and that a decision on development could be taken by the middle of 2011. It is part of the overall Moho Bilondo development. Capital expenditure and profits are split three ways -- Total, operator with a 53.5 percent interest; U.S.-based Chevron , 31.5 percent; and the Congolese national oil company, SNPC, 15 percent. A dozen Western oil companies operate in Congo, where oil accounts for around 70 percent of proceeds to the state.

• Downstream news:

• Business/Finance news:

- The sixth Total Summer School organized in Paris from July 3-8 welcomes 120 international students enrolled in highly competitive graduate programs to discuss the major challenges in the energy industry and Total’s strategic vision. The students, ranging in age from 19 to 23, are from 24 countries in Asia, Africa, Europe and the Americas.

- Total and the Danish Institute for Human Rights (DIHR) will commence a two-year relationship agreement to intensify their collaboration and support effective implementation of human rights principles in Total operations and in the wider corporate sector.

- French and Italian oil majors Total SA (TOTF.PA) and Eni SpA (ENI.MI) reported lower second-quarter profits, reflecting dollar weakness and production outages partly due to fighting in Libya which shut most fields. Total said second-quarter net income, excluding one-offs and non-cash gains due to changes in the value of fuel inventories, fell 6 percent from the same period last year to 2.79 billion euros ($4 billion), just below the 2.85 billion average forecast in a Reuters poll of analysts. Eni's underlying net profit fell 14 percent to 1.44 billion euros compared with an average forecast of 1.65 billion, as Libyan outages pushed its production down 12 percent to 1.49 million barrels of oil equivalent per day (boepd). A 13 percent dip in the dollar hit both companies as the price of crude they produce is denominated in the U.S. currency. In dollar terms, Eni's net income fell 2 percent and Total's underlying result was up 7 percent, performances that paled in comparison to those of bigger rivals Royal Dutch Shell (RDSa.L) and Exxon Mobil (XOM.N), which posted profit rises of 56 percent and 41 percent respectively.

August

• Upstream news:

- In line with the agreement signed by Total and IPIC on February 15, 2011, Total has tendered its entire 48.83% interest in CEPSA following IPIC’s takeover bid for the company, at a price of €28 per share. Total received €3.7 billion for its shares on July 29, 2011. Aligned with its active asset management strategy, the transaction allows the Group to further reduce its exposure to European refining. It has cut its European refining capacity by nearly 25%, or 550,000 barrels per day, since early 2007.

- Total, operator of Block 17, today announced that the giant Pazflor field offshore Angola has come on stream ahead of the initial schedule. The Pazflor field lies 150 kilometres off Luanda in water depths ranging from 600 to 1,200 metres and has estimated proved and probable reserves of 590 million barrels. The field will gradually ramp up to its full production capacity of 220,000 barrels per day over the coming months. Pazflor comprises a vast subsea gathering network, the most complex ever built in Angola: 180 kilometres of lines tying in 49 subsea wells, 10,000 metric tons of subsea equipment and the giant Pazflor floating production, storage and offloading (FPSO) vessel. Held in position by 16 subsea mooring connectors, with its 325 metres long, 62 metres wide and a weight of more than 120,000 metric tons, the FPSO is the largest in the world. It can store up to 1.9 million barrels of oil that is then exported to tankers via an offloading buoy. The associated gas is reinjected into the reservoir, but could also be exported to the Angola LNG plant once the latter becomes operational.

- Tanzania has awarded oil and gas exploration rights for the northern side of Lake Tanganyika to a subsidiary of French energy company Total SA , its state-run petroleum agency said. The Tanzania Petroleum Development Corporation (TPDC) said in a statement on its website Total E&P Activites Petrolieres beat eight other bids from Australian, Canadian, British and American companies for the Lake Tanganyika North Area block. Interest in East Africa as a new hydrocarbon region has been heating up in recent years after major discoveries of oil in Uganda and natural gas in Tanzania and Mozambique. Lake Tanganyika is shared between Tanzania, Democratic Republic of Congo (DRC), Burundi and Zambia.

• Downstream news:

• Business/Finance news:

September

• Upstream news:

- Total announced a hydrocarbon discovery in French Guiana’s deep offshore Guyane Maritime license. Total has a 25% equity interest in the Tullow-operated acreage. Located around 150 kilometres northeast of Cayenne, the GM-ES-1 well lies in just over 2,000 metres of water and has so far been drilled to a depth of 5,711 metres below sea level. Measurement while drilling revealed the existence of liquid hydrocarbon-bearing sandstone reservoirs.

- Total announces a major gas discovery in the Caspian Sea in the Absheron block offshore Azerbaijan. The Absheron X-2 well has encountered more than 500 feet of cumulated net gas pays within high quality sands on the northern flank of a major 270 square kilometres structure. Reservoirs are expected to extend over the entire northern part of the structure. The well’s first results confirm a potential of several trillion cubic feet of gas and associated condensates.

- Total submitted the report required by French authorities concerning the work program for the Montélimar exploration license. The report was filed to allow the Group to maintain the right to explore acreage awarded in March 2010 for a period of five years. The work program described in the report does not envisage the use of the hydraulic fracturing technique. Total is currently completing the preliminary study phase, begun in 2010 under the original program. This phase involves analyzing existing subsurface data. No field operations are being conducted.

- Total announces that it has signed agreements with Talisman Energy (“Talisman”) to farm-in into three deep-offshore exploration blocks in the Makassar Strait in Indonesia. The three blocks operated by Talisman are located in the offshore South Makassar Basin, in water depths ranging from 400 to 2,000 metres. They cover a total area of 10,693 square kilometres. The work commitments during the exploration period include acquiring 2D and 3D seismic as well as drilling two exploration wells. The first exploration well is planned to be spudded in the Sageri block by the end of 2011.

- Total announces its acquisition, through its Total E&P Kenya B.V. subsidiary, of a 40% interest in five offshore exploration blocks in the Lamu Basin, blocks L5, L7, L11a, L11b and L12. Covering an area of more than 30,500 square kilometres, the exploration blocks are located offshore the Lamu Archipelago in water depths of between 100 and 3,000 metres.

• Downstream news:

- Total is introducing Total access, a new service station concept combining low prices and premium Total-branded fuels and services, in France. The Total access network will comprise approximately 600 service stations. The Total access concept is the culmination of a lengthy test conducted at around 40 service stations in France. It reflects the Group’s commitment to more effectively serving consumers and expanding the range of services offered to professionals.

• Business/Finance news:

- Effective October 1, Jacques-Emmanuel Saulnier, 43, joins Total as Senior Vice President, Corporate Communications, succeeding Yves-Marie Dalibard. Reporting to Chairman and Chief Executive Officer Christophe de Margerie, he will also sit on Total's Management Committee.

- Total and Institut d’Etudes Politiques (Sciences Po), France’s leading social sciences university, signed a three-year corporate philanthropy agreement covering the period 2011 to 2013. The strategic partnership aims to educate and recruit the best students, regardless of nationality or social background.

October

• Upstream news:

- Total signed with Novatek the final agreements to jointly develop the Yamal LNG project, becoming the main international partner on this gas liquefaction project with a 20% share. Novatek intends to keep at least a 51% interest in the project. The Yamal LNG project will develop the South Tambey field located in the arctic area of the Yamal peninsula. The resources of this condensate and gas field will allow production of more than 15 million tons of LNG per year. With this project, Total will have access to proved and probable (2P) reserves of approximately 800 million barrels of oil equivalent (boe) within the licence duration and to a plateau production of about 90,000 boe per day. The project has been declared of national interest by the Russian authorities.

• Downstream news:

- In response to profound changes in its business and competitive environment, Total is giving a new dynamic to its strategy for developing industrial and commercial activities in its refining, marketing and chemicals operations. This shall be accomplished through a reorganization that will create two new divisions. The plan does not entail employee outplacement or layoffs. The new Refining & Chemicals division will be a major production hub combining all of Total’s refining and petrochemical operations, including specialty chemicals (Atotech, Bostik, Hutchinson) and fertilizers (GPN, Rosier). The division will be headquartered in Brussels and Paris, with senior management based in Brussels. The new Supply & Marketing division will be dedicated to the global supply and marketing of petroleum products. As a result, Total’s current Downstream and Chemicals operations will be realigned to focus on two core competencies - production and marketing - in order to reinforce existing activities and strengthen prospects for growth.

• Business/Finance news:

- Total, ParisTech and Ecole Polytechnique Introduce the Renewable Energy Science & Technology Master II, an International Cutting-Edge Degree Program. Total, ParisTech and Ecole Polytechnique are introducing the Renewable Energy Science & Technology Master II postgraduate degree program in fall 2011, with the backing of French electric utility EDF, PSA Peugeot Citroën, Saint-Gobain and Schneider Electric.

- Total launched an international contest for students who want to explore the world of energy and become familiar with its challenges. Total’s online strategy game, Total Genius Campus, is an original way of getting young people to think about possible energy scenarios of the future.

- Companies and individuals that invest in Iran's energy sector would be barred from doing business with New York state and its counties, cities and towns under a bill proposed by the state Assembly speaker. States, local governments and private institutions should do "everything possible" to keep Iran from acquiring nuclear weapons, according to a draft copy of the bill proposed by Speaker Sheldon Silver, which cites Iran's "illicit nuclear activities" and work on "unconventional weapons." The proposed bill is modeled after a similar proposal in California. New York has in the past tackled international issues by threatening to sell stakes held by its pensions in public companies. An investment in Iran's natural gas, oil or nuclear industries is defined broadly in the draft bill, as "a commitment or contribution of funds or property, a loan or other extension of credit and the entry into or renewal of a contract for goods and service." Individuals would be subject to the ban if they provide goods or services of at least $20 million or an individual "provides oil or liquefied natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas," according to the draft. If enacted, New York's Office of General Services would have to review 50 companies that California has identified as possibly qualifying for such a curb. The list includes heavyweight public and national firms: BHP Billiton, China National Petroleum Corp, Hyundai Motor Company, Hyundai Heavy Industries, Indian Oil Corporation, LUKOIL, Norsk Hydro ASA, Petroleos de Venezuela, Sinopec Corp and Total SA.

November

• Upstream news:

- Total announced that its subsidiary Total E&P Nigeria Ltd. (TEPNG) has made a new oil discovery in the southeastern corner of Oil Mining Lease (OML) 102 in Nigeria. The discovery is located 65 kilometers off the southeastern coast of the country, about 15 kilometers southeast of the Ofon field. The Etisong North-1 well was drilled to a total depth of 2,387 metres in 80 metres of water. One of the three reservoirs encountered tested at 8,500 barrels per day of 40° API oil. This is the second discovery in the lease, following on from the Etisong Main find in 2008, increasing the feasibility of a new development hub on OML 102.

- The giant Pazflor development, which lies 150 kilometres offshore Luanda in Angola, was inaugurated at a ceremony attended by José Botelho de Vasconcelos, Angola's Minister of Petroleum, Christophe de Margerie, Chairman and CEO of Total, Yves-Louis Darricarrère, President of Exploration & Production at Total; and representatives of Total and the local authorities. The field came on stream on the 24th of August. Output will reach 220,000 barrels per day and will make Total the leading oil operator in Angola and the African deepwater industry. This position should be cemented when the CLOV project begins production, scheduled for 2014.

• Downstream news:

- SNCF, Orange, PSA Peugeot Citroën and Total have joined forces to create Ecomobilité Ventures, Europe’s first investment structure led by a group of industrial companies and dedicated to sustainable mobility. A total of €30 million will be used to invest in innovative young companies. For SNCF, Orange, PSA Peugeot Citroën and Total, the objective is to contribute to the emergence of a new mobility ecosystem that transcends traditional industry boundaries. The creation of new forms of sustainable mobility—driven by fast-changing practices and technologies—requires a synergistic mix of knowledge and skills. Combining the innovation capacity of vibrant young companies with the experience and expertise of Ecomobilité Ventures’ industrial partners will foster the development of new, sustainable solutions. Ecomobilité Ventures will acquire minority interests in European companies in the start-up or development stage and will support them over the long term. The segments targeted are sustainable mobility products, services and technologies and mobility-related clean technologies. The fund will invest in young companies offering solutions to the various issues in these areas. They will have to demonstrate their ability to be profitable on a stand-alone basis by leveraging a solid business model, as well as their potential to become leaders in their market segments.

- A project to reorganize Total’s Downstream businesses was made public and presented to employee representatives on October 10, 2011. In addition, François Cornélis, President of Chemicals and Vice Chairman of the Executive Committee, is stepping down from his operational responsibilities, which he has so ably fulfilled since 1999.

- Total (CAC: TOTF.PA) and Amyris, Inc. (NASDAQ: AMRS) announced the signing of agreements to expand their current R&D partnership and form a joint venture to develop, produce and commercialize a range of renewable fuels and products. Total and Amyris have agreed to expand their ongoing research and development collaboration to accelerate the deployment of Biofene® and develop renewable diesel based on this molecule produced from plant sugars. The ambitious R&D program, launched in 2010 and managed jointly by researchers from both companies, aims to develop the necessary stages to bring the next generation renewable fuels to market at commercial scale. Total has committed to contribute $105 million in funding for an existing $180 million program.

- Kenyan oil marketer Total posted a 67 percent plunge in nine-month pretax profit after government price-capping squeezed margins, sales costs rose and volumes slipped in a tough environment. The company, part of French oil major Total SA, made a pretax profit of 195 million shillings ($2.1 million) and said it would have swung to a loss were it not for 200 million shillings income from the disposal of assets. Sales volumes dropped 5 percent to 685 kilo metric tonnes, as retail consumers, hurt by high inflation and a weaker local currency, made fewer visits to the pumps while bulk buyers placed lower orders.

• Business/Finance news:

December

• Upstream news:

- French oil group Total SA will invest $200 million in 2012 drilling an oil block in a Joint Development Zone (JDZ) between Sao Tome and Nigeria, a Total executive said. Francois Le Cocq, speaking after a meeting of the three partners in Sao Tome, told a news conference that drilling is scheduled to begin in the first quarter of next year. Total said last year that it had acquired Chevron's 45.9 percent interest in Block 1 in the JDZ, which it will operate in partnership with Addax Petroleum, Dangote Energy Equity Resources and Sasol Exploration and Production Nigeria. The oil find, if successful, will be a first for Sao Tome, a tiny Atlantic archipelago nation where previous explorations attempts have failed to find oil in commercially viable quantities.

- Total, operator of the Elgin/Franklin fields in the British sector of the North Sea, announces the purchase of GDF SUEZ’s share in the two fields for an enterprise value of €590 million. This participation is held through a 22.5% interest in the company Elgin Franklin Oil & Gas (EFOG). The Elgin/Franklin fields, including West Franklin, produce an average of 140 000 barrels of oil equivalent per day (boe/d).

- Total announced that it has taken, together with its partner Novatek, the final investment decision to develop the Termokarstovoye gas and condensates field. This onshore field is located in the Yamal Nenets autonomous district of Russian Federation, 250 kilometers east of Tarko-Sale. The field has a potential of around 47 billion cubic meters of natural gas and about 10 million tons of condensates. The project start-up is expected in 2015 with a production capacity of around 65, 000 barrels of oil equivalent per day (boe/d).

- The Canadian government gave Total SA approval to start construction on its C$9 billion ($8.9 billion) Joslyn North oil sands project in Alberta, marking the fifth mining development in the vast crude deposit. Total, the French oil major, and its Canadian, U.S. and Japanese partners aim to start production in 2018, hitting a peak of 100,000 barrels a day. While the company welcomed Ottawa's go-ahead, following a six-year regulatory review, it has yet to make its final decision on whether to proceed with the massive project. Natural Resources Minister Joe Oliver announced the decision as controversy spreads at home and abroad over the environmental impact of developing and transporting oil sands crude. Ottawa has made boosting and diversifying exports of the unconventional oil - possibly to Asia - a top priority. The tar sands of northern Alberta are the world's third-largest oil reserves, behind Saudi Arabia and Venezuela, but the largest open to private investment. While the region is the biggest source of U.S. oil imports, separating the tarry bitumen from the sands and refining it into gasoline and other products produces more carbon dioxide than conventional oil production. Environmental groups at the United Nations climate summit in Durban, South Africa, have been sharply critical of Ottawa's aim to foster more development of the resource, which accounts for rising emissions of greenhouse gases.

- Total announced that it has finalized agreements with Vermilion Exploration SAS and Vermilion Pyrénées SAS to divest six producing assets in France. The assets concerned, which account for 0.15% of Total’s global production, are being transferred to an operator with recognized expertise in mature fields. The agreement with Vermilion covers the sale of Total’s interests in the Itteville (78.7%), Vert-le-Grand (90.05%), Vert-le-Petit (100%), La Croix Blanche (100%) and Dommartin Lettrée (57%) licenses in the Paris basin, as well as the Vic Bilh (73%) license in southwestern France. Vermilion already holds interests in the Itteville, Vert-le-Grand and Vic Bilh licenses and will own 100% of them when the transaction is finalized.

- Total announced that it is expanding its significant presence in Angola through the successful application for three new exploration blocks in the deepwater Kwanza Basin. Following an international licensing round, Total signed three production sharing agreements with state-owned Sonangol on December 20, 2011. Total will operate Blocks 40 and 25 with respectively a 50% and a 35% interest and be a partner with a 15% interest in Block 39. Sonangol is the concession holder for these acreages.

• Downstream news:

- Total, through its 100% affiliate PetroFina S.A., signed an agreement with ExxonMobil Petroleum & Chemical BVBA under which ExxonMobil is to transfer to Total its 35% shareholder interest in Fina Antwerp Olefins. The transaction is subject to the approval of the European competition authorities. Once the transaction is completed, Total will be the sole shareholder in Fina Antwerp Olefins. Fina Antwerp Olefins, in which Total currently has a 65% interest, was set up in Antwerp in 1951. This plant is the second largest in Europe for the production of base chemicals products, including ethylene, propylene and benzene. Some of the plant’s output is used by Group units in particular in both Antwerp and Feluy to manufacture polymers.

- Solar power maker SunPower Corp said it agreed to buy Tenesol, a unit of French oil major Total SA, for $165.4 million in cash. Upon closing of the deal, Total will buy 18.6 million SunPower shares in a private placement for $8.80 per share. This is a 50 percent premium to SunPower closing price of $5.85. After the sale of Tenesol, Total will own about 66 percent of SunPower shares.

• Business/Finance news:

- Lotus Renault Grand Prix (LRGP) and Total are delighted to announce that Romain Grosjean will race alongside 2007 world champion Kimi Räikkönen next season. The two companies are also pleased to confirm that they have renewed their sponsorship agreement for another year.

- Martin Deffontaines is appointed Vice-President, Investor Relations of Total. He succeeds Bertrand de La Noue who is appointed General Representative for Total in China.