Elf Gabon's net income before special items for the first half of 1998 was $39.7 million compared to $74.6 million for the first six months of 1997 ($230.9 million including special items) or a decrease of 47%.

This decrease is due essentially to the fall in crude oil prices (the average price of Gabonese crude fell 31% from $18.04 a barrel to $12.39 a barrel). The decrease in net income would have been even greater had overall costs not been reduced by 18%.

Investments

Investments declined to $28.3 million for the first half of 1998, down from $37.5 million for the same period 1997. Operations for 1998 mainly concerned:

• in exploration, the evaluation of blocks proposed in the 8^th round located in very deep offshore, continuing studies on the Atora discovery and the interpretation of the latest seismic surveys,

• in development, continuance of Phase II for the Shell Gabon-operated Rabi field (increment A).
  

Production

At June 30, 1998, the Elf Gabon's estimated share of oil production, net of royalties, was 118,000 barrels per day compared with 122,000 barrels per day for the first half of 1997. This slight decrease is due to a 10% decline in non-operated production (Rabi field); it was partially compensated for by a 2% increase in Elf-operated production.

Principal financial results for the first half 1998 (in millions of US dollars)

Press Contacts

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

Investor Relations Contacts

In Paris : (33) 1.47.44.24.63
In New York : (1) 212.922.3004