Elf Aquitaine signed an agreement today for the sale of its Italian oil and gas subsidiary, Elf Idrocarburi Italiana, to Edison Gas. Elf Aquitaine will retain its petroleum products distribution operations in Italy.

Elf Idrocarburi Italiana has interests in eight exploration licenses in Italy, mainly in the Southern Apennines. It produces oil and gas from 21 concessions located principally offshore in the Adriatic Sea.

It also has a 34% interest in Societa Gasdotti del Mezzogiorno (SGM) which commercializes natural gas from the central region of Italy.

This sale is in line with the dynamic exploration-production management policy that Elf has been carrying out the past few years in order to increase shareholder value. Assets are disposed of from the time their sale allows the company to obtain this result without putting the Exploration-Production Division's industrial and financial objectives into question.

Within this framework, Elf's Tunisian subsidiary was sold in 1997, as well as approximately 60 other assets situated in several other subsidiaries. The number of fields has been reduced by 20% in four years while production has increased during the same period. This concentration on more productive fields has contributed very positively to the reduction of operational costs.

This policy of creating value will be continued in 1998.

Thomas Saunders (33.1) 47.44.42.30
Catherine Durand (33.1) 47.44.37.76