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Total Exploration & Production: Combining long-term growth and profitability.

In a context of very volatile oil prices, 2009 was an eventful year for Total's Upstream segment, with several good exploration successes, production start-ups and the launch of new projects. The Group is confident in the solidity of its portfolio and is pursuing its strategy of long-term investments.

Exploration and development: An active program in 2009

Total continued to follow an active exploration program in 2009, with exploration investments of consolidated subsidiaries amounting to 1,5 B€ (including unproved property acquisition costs). The main exploration investments were made in the United States, Angola, Norway, the United-Kingdom, Australia, Libya, Nigeria, the Republic of Congo and Canada.

The Group's consolidated Exploration & Production subsidiaries' development expenditures amounted to 8 B€ in 2009, primarily in Angola, Nigeria, Norway, Kazakhstan, Indonesia, the Republic of Congo, the United Kingdom, the United States, Gabon, Canada, Thailand, Russia and Qatar.

Reserves: A solid, diversified and promising portfolio

As of December 31, 2009, Total's combined proved reserves of crude oil and natural gas were 10,483 Mboe (56% of which were proved developed reserves). Liquids (crude oil, natural gas liquids and bitumen) represented approximately 54% of these reserves and natural gas the remaining 46%. At the 2009 average rate of production, the reserve life is more than twelve years.

These reserves are located for the most part in Europe (Norway, the United Kingdom, The Netherlands, Italy and France), Africa (Nigeria, Angola, the Republic of Congo, Gabon, Libya, Algeria and Cameroon), Asia/Far East (Indonesia, Myanmar, Thailand and Brunei), North America (Canada and the United States), the Middle East (Qatar, United Arab Emirates, Yemen, Oman, Iran and Syria), South America (Venezuela, Argentina, Bolivia, Trinidad & Tobago and Colombia) and the Commonwealth of Independent States (CIS) (Kazakhstan, Azerbaijan and Russia).

Reserves

The definitions used for proved, proved developed and proved undeveloped oil and gas reserves are in accordance with the applicable United States Securities & Exchange Commission (SEC) regulation, Rule 4-10 of Regulation S-X.

Proved reserves represent the estimated quantities of Total's entitlement under concession contracts, production sharing contracts or buyback agreements. These estimated quantities may vary depending on oil and gas prices.

Reserves at year-end 2009 have been determined based on the Brent price on December 31, 2009 ($59.91/b).

If reserves had been estimated in accordance with Rule 4-10 of Regulation S-X, using the same perimeter and if the Brent price at December 31, 2009 had been 93.72$/b (the year-end 2007 price), reserves would have amounted to 10,351 Mboe.

Production, stable in 2009

For the full year 2009, hydrocarbon production was 2,281 kboe/d, a decrease of 2.6% compared to 2008, mainly as a result of:

+2% for ramp-ups and start-ups of new fields net of the normal
decline;
+1.5% for the price effect 1;
-3% for OPEC reductions and lower gas demand;
-1% for disruptions in Nigeria related to security issues; and
-2% for changes in the portfolio, essentially in Venezuela and Libya.

Excluding the impact of OPEC reductions, production was stable compared to 2008.

Producer and/or operator

Consistent with industry practice, Total often holds a percentage interest in its fields rather than a 100% interest, with the balance being held by joint venture partners (which may include other international oil companies, state-owned oil companies or government entities).

Total frequently acts as operator (the party responsible for technical production) on acreage in which it holds an interest.

(1) Limited to proved and probable reserves covered by E&P contracts on fields that have been drilled and for which technical studies have demonstrated economic development in a 60 $/b Brent environment, including projects to be developed by mining.

(2) Proved and probable reserves plus potential median recoverable reserves from known accumulations (Society of Petroleum Engineers - March 2008)

(3) Impact of changing hydrocarbon prices on entitlement volumes

Sources: Total in 2009

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