OIL AND GAS RESERVES

The following tables present, for crude oil, condensates and natural gas liquids reserves and for the natural gas reserves, an estimate of the Group's oil and gas quantities by geographical areas at December 31, 2001, 2000 and 1999.

Quantities shown concern:

- Proved developed and undeveloped reserves together with changes in quantities for 2001, 2000 and 1999.

- Proved developed reserves.

Proved developed and undeveloped reserves are the Group's share of reserves which it intends to produce in the future through proven technical data and under economic conditions prevailing at year-end.
Proved developed reserves are those that can be expected to be recovered through existing wells with existing equipment if no further capital expenditures are made after the year-end.
Quantities are shown net of royalties.
The determination of these reserves is part of an ongoing process subject to continual revision as additional information becomes available; it is only after several years of production that a more reliable estimate of reserves can be made.
The reserve estimates shown below do not include quantities that may or may not be produced, due to changes in economic conditions or pursuant to new technologies.
Proved reserves do not include additional quantities recoverable beyond the term of lease or concession.
Proved reserves include estimated quantities allowable under the production sharing contracts. These reserve estimates vary with the oil price due to the terms of repayment of the costs provided for in the contract.
The estimates at 2001 year-end have been drawn up after harmonisation of the principles and practices within the TotalFinaElf Group; the effects linked to these changes are not significant and have been taken into account without modifying the pro forma reserves in 1999.

All references to reserves are to the Company’s share of such reserves, net of any liquids or gas that may be taken by third parties as royalties in kind.

FINANCIAL REVIEW

The tables set forth in the 1999 pro forma accounts were prepared in accordance with harmonised disclosure principles:

- Geographic perimeter: there are five geographic areas; Europe (excluding CIS), Africa, North America, Far East and Rest of the World;

- Business scope: the figures are shown net of costs relating to oil and gas transportation and gas liquefaction;

- The quantities pertaining to the Reserves and Productions are shown net of royalties and the other deductions (mainly production taxes) are classified under "Other expenses".

The accounting principles and practices were harmonised within TotalFinaElf Group later on; the effects linked to these changes are not significant and have been taken into account without modifying the pro forma FAS 69 in 1999.
Up to year 2000, the development costs related to the upgrader of the Sincor heavy oil project in Venezuela used to be included in the capitalized and incurred costs displayed in the FAS 69 amounts. In 2001, TotalFinaElf has taken the position that these costs do not in fact fall into the FAS 69 perimeter and the corresponding amounts have been excluded. The amounts displayed for 1999 and 2000 have not been modified: the corresponding impact is detailed in the concerned tables.

RESULTS OF OPERATIONS FOR OIL AND GAS PRODUCING ACTIVITIES

The following table includes revenues and expenses associated directly with the Company's oil and gas producing activities. It does not include any interest cost. In the Consolidated Financial Statements, the Company's share of results of oil and gas producing activities for equity affiliates is reflected through internal billing in the Upstream operating income.

COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT ACTIVITIES

The following table shows the costs incurred in the Company's oil and gas property acquisition, exploration and development activities: they include both capitalized and expensed amounts.
The incurred costs related to the upgrader of the Sincor project in 2000 and 1999 amount respectively to 416 million euros and 339 millions euros. Excluding these amounts, the incurred costs would have totalled 1,381 million euros and 902 million euros instead of 1,797 million euros and 1,241 million euros for the Rest of the World zone, and 4,390 million euros and 4,278 million euros instead of 4,806 million euros and 4,617 million euros for the Consolidated total.