Elf Aquitaine (NYSE:ELF), in partnership with Conoco (NYSE:COC), announces the signature of a new gas project contract for the Deir ez Zor region in eastern Syria. The contract was signed November 21, with the Syrian Arab Republic Minister of Petroleum and Mineral Resources and the Syrian Petroleum Company. It will become effective following approval by the Syrian People's Assembly.

Elf Hydrocarbures Syrie and Conoco Middle East Gas Company N.V. each hold a 50% interest in the project. Total cost is estimated at $430 million.

The objective of the project is to enhance the value of gas associated with the oil fields in the Deir ez Zor area which is presently being flared, and to simultaneously develop the Tabiyeh gas condensate field discovered by Elf.

The project includes the construction of a gas gathering system and a gas processing plant and a 250-kilometer pipeline to transport a total of 150 million cubic feet a day of residue gas to the national grid near Palmyra. Condensate recovery from the Tabiyeh field will be optimized through gas re-injection during the first years.

This agreement is within the framework of a service contract, whereby Elf and Conoco will be operators, with Conoco as the leader, for the development phase and the first four years of production. Then, the Syrian Petroleum Company will take over as operator.

Elf produces 60,000 barrels of oil a day in the Deir ez Zor region and is carrying out exploration in the Tishreen basin in northeastern Syria. The new project confirms Elf's objective to develop its activities in Syria and the Middle East. It also complies with Elf's objective to reduce greenhouse gas emissions 15% by 2005.

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

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