Elf Gabon (50%, operator) and partner MPDC Gabon (Mitsubishi Group, 50%) have signed a development and production sharing contract (PSC) with the Gabonese Republic for the Baudroie-Mérou Marine license.

The agreement covers the Baudroie, Baudroie Nord Marine, Baliste Sardine fields, located 25 kilometres offshore Olende Gabon. The fields were previously being developed under a concession license. The signature of the PSC, which replaces the previous concession agreement, extends the licenses for a further ten years until 2013.

Elf Gabon will thereby continue its development strategy with planned capital spending on this block in 2002 to include notably geological work, seismic imaging, and the drilling of an additional well in the fourth quarter.

With this agreement, Elf Gabon, a 58%-owned subsidiary of the TotalFinaElf group, confirms its confidence in and commitment to initiatives to develop Gabon's oil potential.