Algeria

In Algeria, Total’s production was 41 kboe/d in 2010, compared to 74 kboe/d in 2009 and 79 kboe/d in 2007. This decline is mainly due to the termination of the Hamra contract in October 2009. The Group’s 2010 production came from its direct interests in the TFT field (Tin Fouyé Tabenkort, 35%) and from its 48.83% interest in CEPSA⁽¹⁾, a partner of Sonatrach (the Algerian national oil and gas company) on the Ourhoud and Rhourde El Krouf fields. Total also holds a 37.75% direct interest in the Timimoun gas project, alongside Sonatrach (51%) and CEPSA (11.25%) as well as a 47% interest in the Ahnet gas project alongside Sonatrach (51%) and Partex (2%).

Angola

In Angola, the Group’s production was 163 kboe/d in 2010,compared to 191 kboe/d in 2009 and 205 kboe/d in 2008. Production comes mainly from Blocks 17, 0 and 14. Highlights of the period 2008 to 2010 included several discoveries on Blocks 15/06 and 17/06, and progress on the major Pazflor and CLOV projects.

• Deep-offshore Block 17 (40%, operator) is TOTAL’s principal asset in Angola. It is composed of four major zones: Girassol, Dalia, Pazflor and CLOV.
  

   

  On the Girassol pole, production from the Girassol, Jasmim and Rosa fields was more than 190 kb/d in 2010.
  On the Dalia pole, production was more than 240 kb/j in 2010. On the third pole, Pazflor, comprised of the Perpetua, Zinia, Hortensia and Acacia fields, production is scheduled to begin in late 2011. This project provides for the installation of an FPSO with a production capacity of 220 kb/d.
  The development of CLOV, the fourth pole, was launched in 2010 with the award of the main contracts. This development will result in the installation of a fourth FPSO with a production capacity of 160 kb/d. Start-up of production is expected in 2014.

• On Block 14 (20%), production on the Tombua-Landana field started in August 2009 and adds to production from the Benguela-Belize-Lobito-Tomboco and Kuito fields. 

• On ultra-deep offshore Block 32 (30%, operator), appraisal is continuing and pre-development studies for a first production zone in the central/southeastern portion of the block are underway (Kaombo project).
  On Block 15/06 (15%), four major discoveries were announced in 2010. Studies are underway to demonstrate the feasibility of a first development area that would include the discoveries located on the northwest portion of the block.

  
  Total  also has operations on exploration Blocks 33 (55%, operator) and 17/06 (30%, operator). At year-end 2010, Total sold its 5% interest in Block 31.
  Total is also developing in LNG through the Angola LNG project (13.6%) with the construction of a gas liquefaction plant near Soyo. The plant will be supplied in particular by the gas associated with production from Blocks 0, 14, 15, 17 and 18. Construction work is ongoing and start-up is expected in 2012.

Cameroon

In Cameroon, the Group’s production was 9 kboe/d in 2010, compared to 12 kboe/d in 2009 and 14 kboe/d in 2008. In November 2010, TOTAL finalized an agreement in principle with Perenco to sell the Group’s 75.8% interest in its Exploration & Production subsidiary in Cameroon. The agreement is subject to the approval by the Cameroonian authorities.

Côte d'Ivoire

In Côte d’Ivoire, Total signed in October 2010 an agreement to acquire a 60% interest (operator) in the CI-100 exploration license. The transaction has been approved by the relevant authorities. The 2,000 km2 license is located approximately 100 km southeast of Abidjan in water depths ranging from 1,500 to 3,100 meters.Exploration work will include a new 1,000 km2 3D seismic survey, which will complete coverage of the block, and a first well is expected to be drilled in 2012.

Egypt

In Egypt, Total signed a concession agreement in February 2010 and became operator of Block 4 (El Burullus offshore Est) with an interest of 90%. The license, located in the Nile Basin where a number of gas discoveries have been made, covers a 4-year initial exploration period and includes a commitment to carrying out 3D seismic work and drilling exploration wells. The seismic campaign started in November 2010 and ended in February 2011.

Gabon

In Gabon, the Group’s share of production was 67 kboe/d in 2010,compared to 71 kboe/d in 2009 and 76 kboe/d in 2008, due to the natural decline of fields. Total Gabon⁽²⁾ is one of the Group’s oldest subsidiaries in sub-Saharan Africa.

• On the Anguille field, five development wells were drilled in 2010 from existing platforms and the construction of a new well platform has been launched.

• On the deep-offshore Diaba license (Total Gabon 63.75%, operator), following the 2D seismic survey that was shot in 2008 and 2009, a 6,000 km2 3D seismic was shot in 2010.

• Licenses for the Avocette and Coucal fields have been renewed in the form of an operating and production sharing agreement effective as of January 1, 2011, each for a 10-year period renewable for two subsequent 5-year periods.

• Total Gabon farmed into the onshore Mutamba-Iroru (50%), DE7 (30%), and Nziembou (20%) exploration licenses in 2010.

Libya

In Libya, the Group’s production was 55 kb/d in 2010, compared to 60 kb/d in 2009 and 74 kb/d in 2008. Declining production was primarily due to the implementation of OPEC quotas and new contractual provisions for Blocks C 17 (75%) ⁽³⁾ , C 137 (75%)⁽³⁾ , NC 115 (30%)⁽³⁾  and NC 186 (24%)⁽³⁾, on which Total is a partner. The EPSA IV agreements (exploration and production sharing agreements) on Blocks C 137 and C 17 were ratified by the Libyan government in January 2010 and now extend to 2032.
Having regard to the security context in Libya in the first quarter of 2011, the Group’s production in Libya has been significantly reduced since early March. Furthermore, the Group is reviewing the impacts on its operations and the measures to be taken for the projects mentioned below.

• On Block C 17, the Dahra and Garian fields are in the development phase.
• On Block C 137, drilling of two offshore exploration wells is planned for 2011.
• On Blocks NC 115 and NC 186, the nearly 5,000 km2 seismic campaign is expected to be completed in 2011.
• On the Murzuk Basin, following a successful appraisal well drilled on the discovery made on a portion of Block NC 191 (100%(1),
  operator), a development plan was submitted to the authorities in 2009.
• In December 2010, the Group relinquished Block 42 2/4 (60%(1), operator) located in the Cyrenaic Basin at the contract expiration date following an exploration well’s disappointing results.

Madagascar

In Madagascar, Total acquired a 60% interest in, and the operatorship of, the Bemolanga permit in September 2008. Bemolanga contains oil sands accumulations. A first appraisal phase was launched to confirm the bitumen resources needed for a mining development. Drilling operations started in July 2009 and are expected to take place in 2010 during the dry season (April to November).

Mauritania

In Mauritania, Total is active in exploration on the Ta7 and Ta8 permits (60%, operator), located in the Taoudenni Basin, alongside Sonatrach (20%) and Qatar Petroleum International (20%), Qatar’s state-owned company. Drilling of an exploration well on the Ta8 permit started in October 2009.

Nigeria

In Nigeria, the Group’s production amounted to 301 kboe/d in 2010, compared to 235 kboe/d in 2009 and 246 kboe/d in 2008. This increase is due in particular to improved security conditions in the Niger Delta. Total has been present in Nigeria since 1962. It operates seven production licenses (OML) out of the forty-four in which it holds an interest, and two exploration licenses (OPL) out of the eight in which it holds an interest. The Group is also active in LNG through Nigeria LNG and the Brass LNG project. In 2010, Total acquired a 45.9% interest in Block 1 in the Joint Development Zone governed by Nigeria and São Tomé and Principe and was awarded operatorship in this block.

• Total holds a 15% interest in the Nigeria LNG gas liquefaction plant, located on Bonny Island, with an overall capacity of 22 Mt/y of LNG. In 2010, an improvement in the security situation for onshore facilities resulted in increased LNG production. NLNG’s utilization rate was approximately 72% in 2010, compared to approximately 50% in 2009. Preliminary work prior to launching the Brass LNG project (17%), which calls for the construction of two trains, each with a capacity of 5 Mt/y, continued in 2010.
  
• Total strengthened its ability to supply gas to the LNG projects in which it has interests and to meet the growing domestic demand in gas:
  On the OML 136 license (40%), the positive results for the Agge 3 appraisal well confirmed the development potential of the icense. Development studies are underway. As part of its joint venture with the Nigerian National Petroleum Corporation (NNPC), Total launched a project to increase the production capacity of the OML 58 license (40%, operator) from 370 Mcf/d to 550 Mcf/d of gas in 2011. A second phase of this project, which is currently being assessed, is expected to allow the development of other reserves through these facilities. On the OML 112/117 licenses (40%), Total continued development studies in 2010 for the Ima gas field.
  
• On the OML 102 license (40%, operator), Total is expected to make the final investment decision for the Ofon phase 2 project in 2011 with a start-up scheduled in 2014. The Group also launched in 2010 an appraisal campaign for the Etisong field, located 15 km from the Ofon field, which is currently producing.
  
• On the OML 130 license (24%, operator), the Akpo field, which started up in March 2009, reached in 2010 plateau production of 225 kboe/d (in 100%). The Group is actively developing the Egina field, for which a development plan was approved by the Nigerian authorities. Basic engineering studies carried out in Nigeria are now completed and call for tenders for the projects have been launched.
  
•  On the OML 138 license (20%, operator), development of the Usan project (180 kb/d, production capacity) continued in 2010, in particular with the drilling of production wells, the construction of the FPSO and the start of the installation of sub-sea equipment. Production is expected to start-up in 2012.

Total also consolidated deep offshore positions with the ongoing development of the Bonga Northwest project on the OML 118 license (12.5%). Improved security conditions in the Niger Delta region resulted in a substantial increase in the production operated by the Shell Petroleum Development Company (SPDC) joint venture, in which Total owns 10%. The Soku processing plant resumed operations in 2009 and the Gbaran-Ubie development project was completed in 2010 with the commissioning of the 1 Bcf/d production facility. In 2010, Total disposed of the interests it held (10%) through the operated SPDC joint venture in the OML 4, 38 and 41 licenses.

Republic of the Congo

In the Republic of the Congo, the Group’s share of production was 120 kboe/d in 2010, compared to 106 kboe/d in 2009 and 89 kboe/d in 2008.

• On the Moho Bilondo field (53.5%, operator), which started up in April 2008, drilling of development wells continued in 2010.
  The field reached plateau production of 90 kboe/d (in 100%) in June 2010. Growth potential of the northern part of the field was confirmed by the Moho North Marine 3 appraisal well drilled at year-end 2008 following the Moho North Marine 1 and 2 discoveries, and later in 2009 by the Moho North Marine 4 exploration well that discovered new resources. Finally, twopositive appraisal wells (Bilondo Marine 2 & 3) drilled at year-end 2010 in the southern portion of the field confirmed an additional growth potential as an extension of existing facilities.
  
• Production on Libondo (65%, operator), which is part of the Kombi-Likalala-Libondo operating license, started up in March 2011. Anticipated plateau production is 8 kb/d (in 100%). A substantial portion of the equipment was sourced locally in Pointe-Noire through the redevelopment of a construction site that had been idle for several years

Sudan

In Sudan, the Group holds interests in an exploration permit in the southern part of the country, although no activity is currently underway in this country. For additional information on Total’s operations in Sudan, see sudan.total.com.

(1) In February 2011, Total signed an agreement to dispose of its 48.83% interest in CEPSA. The transaction is conditioned on obtaining all requisite approvals

(2) Total Gabon is a Gabonese company whose shares are listed on Euronext Paris. TOTAL holds 58%, the Republic of Gabon holds 25% and the public float is 17%

(3) Interest held in the foreign consortium

Source : Registration Document 2010