Elf Petroleos do Brasil Ltda, a subsidiary of Elf Aquitaine announces that it has signed an agreement with Petrobras, the Brazilian national oil company, for a 15% interest in Block BFZ-2, operated by BP Amoco (35%), with Petrobras (30%) and Exxon (20%) as partners.

Work has just begun on the block following the ratification of this agreement by the National Petroleum Agency.

Block BFZ-2 is located 300 kilometers northeast of the mouth of the Amazon River. It has a surface area of 25,000 square kilometers with water depths ranging from 100 to 2,000 meters and shows a large geological interest in a still little-explored region.

The Group recently strengthened its quality acreage in the deep and very deep offshore regions in this part of the world notably through the acquisition in August of a 35% interest and the operatorship of Block BC-2, located in the rich Campos Basin.

These new licenses demonstrate Elf’s willingness to intensify its research for oil and gas targets of large dimensions in quality basins.

In Brazil, Elf now has acreage of high potential, thus strengthening the South American positions of the new oil and gas group to be formed through the planned combination of Elf and Totalfina.

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Since October 28, 1999, Totalfina (NYSE : TOT) holds approximately 95% of the share capital of Elf Aquitaine. The combination of the two companies is conditional upon the approval of the European Commission, which is expected mid-February 2000.