Note: Restated at constant 2011 scope.

Exploration & Production: Optimizing New Project Design

Our initiatives and technical choices in our exploration and production operations are guided by two main processes:

• Energy audits, which are progressively being deployed at our facilities.
• Comparing the energy performance of our different types of installations, such as liquefaction plants and Floating Production, Storage and Offloading (FPSO) vessels.

This helps us to enhance the design of new projects, factor in well aging more effectively and continue working toward a 2% annual improvement in E&P’s energy efficiency.

Chemicals and Downstream Activities: Pursuing Our Initiatives and Developing Synergies

Key capital expenditure at our major chemical complexes, including Gonfreville in France, Feluy and Antwerp in Belgium and Carville in the United States, have enabled our Petrochemicals business to reach its target of a 2% improvement each year since 2007.
Continuing efforts to identify untapped energy efficiencies should keep upgrade initiatives going past 2012.

Our smallest specialty chemicals sites are also pitching in: the Houston facility of Cook Composites & Polymers, a Cray Valley subsidiary, has managed to cut its energy use 14% compared to 2007 What’s more, the U.S. authorities have recognized its successful completion of energy management certification.

The Packinox ® (18 meters high and weighing 15 tons), a new
and highly efficient heat exchanger, being delivered to
the Normandy Refinery.

Energy accounts for more than half of Refining’s operating costs. The slowdown in activity at our refineries in the last two years does not help boost the overall energy efficiency of our installations. Significant progress will nonetheless be made, thanks to major upgrades under way. The completion of the deep conversion project at the Port Arthur, Texas refinery, the addition of three units to improve energy recovery at the Antwerp refinery, and the installation of a new furnace and an ultra-efficient Packinox® heat exchanger as part of the revamping of the Normandy refinery in France are all expected to deliver significant benefits.

Optimizing the management of units and a stronger corporate energy culture are other important drivers of progress to achieve an improvement of 1% a year. An action plan incorporating them will target two or three sites a year. Energy teams from the technical support center set up in Dunkirk when the Flandres facility was repurposed will lend their expertise to the sites starting in mid-2011.

Our businesses work in synergy to make sure we meet our objectives. Areas covered include turbine maintenance policy and optimizing product swaps between petrochemical units and refineries.

Lastly, we are undertaking a wide range of initiatives to improve the energy efficiency of our marketing and retail activities. They include an energy saving plan at service stations, audits of energy use and greenhouse gas emissions at representative fuel retailing units, and the design of high environmental quality (HQE-certified) highway outlets.

Picking Out the Most Efficient Alternative Energies

Producing solar power equipment and biomass-to-energy, biomass-to-chemicals and carbon chemistry processes are promising solutions, but also require energy. That’s why our R&D encompasses improving the energy efficiency of processes. In 2010, our acquisition of an interest in the start-up AE Polysilicon was a decisive move, giving us access to a purified silicon (used for solar panels) production technology that is far less energy-intensive than conventional processes.