Trading: One of the world's major traders of crude oil and refined products ⁽¹⁾

Trading & Shipping is active in organized and over-the-counter markets that handle the three main petroleum products-crude oil, refined products, and derivatives.

Trading & Shipping's main activity is leveraging and optimizing our oil and gas production, the supply of feedstock to our refineries, and outlets for our refineries and marketing subsidiaries. It also manages price risks for all of our production and trading operations. Trading & Shipping has acquired and honed matchless oil trading and risk management expertise, which is also available to outside customers and partners for oil price risk management.

Trading & Shipping is a leading trader in world oil markets. Throughout 2008, the Trading division maintained a level of activity similar to the levels attained in 2007 and 2006, trading physical volumes of crude oil and refined products amounting to an average of approximately 5 Mb/d.

Totsa, Total's Trading website

Shipping: A recent fleet

The Shipping Division arranges the transportation of crude oil and refined products necessary for the Group's activities. As of December 31, 2008, the Group employed a fleet of 62 vessels chartered under long-term or medium-term agreements (including six LPG carriers). The fleet, consisting entirely of double-hulled vessels, is modern, with an average age of approximately five years.

Tighter safety in sea transport

We have one of the most stringent vetting processes in the oil industry, and it is applied not only to charter vessels, but also to ships carrying cargoes owned by subsidiaries and/or transiting through Total-operated terminals.

Improving maritime shipping safety remains a constant concern. For many years, worldwide statistics have shown a steady decline in ocean oil spills. This is the result of joint initiatives by the entire oil industry, including Total as an active participant. These initiatives must be pursued with determination.

Ship selection

Regardless of the type of vessel, Total applies strict selection criteria to the ships it charters and ensures that the owners comply fully with:

• Regulations set by international shipping agreements.
• National regulations and the results of inspections carried out by the flag state, country port authorities, certification agencies, etc.
• The Group's Safety Environment Quality Charter.
• Recommendations from the OCIMF (Oil Companies International Marine Forum) and other indutry organizations.
• The Group's own safety standards.

Among the industry's strictest chartering criteria

At Total, all chartered ships are subject to the same selection criteria and inspected by in-house oil or chemicals teams depending on the cargo. Total's regulations are among the industry's strictest and they are regularly reviewed. They include a range of criteria, including age limits on charter vessels. Current petroleum products transportation policies forbid the chartering of ships that fail to meet the following age criteria:

• No ships more than 25 years old
• Age limit lowered to 20 years for ships over 30,000 tons.
• Age limit lowered to 15 years for heavy fuel oil transport.

(1) On the basis of volumes traded