Immediate Cost Savings (1999/2001)

	MF(e)	M$(e)1*
Upstream : 350 MF ($ 60 M)
Integration of affiliate offices	150	25
Streamlining new business ventures and exploration	200	35
Downstream and Petrochemicals : 1,500 MF ($ 265 M)
Restructuring central functions (headquarters and marketing affiliates)	500	90
Elimination of overlapping logistics	250	45
Streamlining management of European refineries, including Research & Development	300	55
Rationalising marketing activities	100	15
Centralising purchasing	350	60
Corporate : 250 MF ($ 45 M)
Consolidating headquarters and centralising purchasing	250	45
( excluding Downstream and Petrochemicals)	_________	_______
	2 100	370

Staff reductions associated with these actions affect approximately 1000 positions in many locations

Estimated restructuring costs, largely in the form of non-cash provisions, will be recognised in an amount less than the recurring annual cost savings

In addition to the FF 2.1 billion identified synergies, further productivity gains should be achieved progressively over the coming years in the following areas:

Financial

• Improvement in financing charges linked to TOTAL’s superior long-term debt rating by Standard & Poor’s (AA-) versus PETROFINA’s (A+). Following the announcement of the transaction, S&P has placed both companies on credit watch with positive implications

• Potential tax benefits at the corporate level as well as in the subsidiaries when both TOTAL and PETROFINA are present in the same countries

• Lower insurance costs related to scale effect

Operations

• Enhance brand management, reduce advertisement cost and consolidate customer loyalty programs
  

• Maximize benefits of complementary strengths in marketing, leveraging off of the stronger of the two marketing positions by country

• Integrate information systems and optimise method of payment (credit cards)

• Optimise decorative paints positions

Capital efficiency

• Reduce Capex related to Auto Oil 2 (2005) through optimisation of the refinery system

• Improve overall profitability by divesting marginal assets

^{1 *}based on a 5,65 FF exchange rate