NOVOTEL LONDON WEST • LONDON, UNITED KINGDOM • 2-4 APRIL 2019

Deepwater between boldness and discipline

Jean-Hervé MorardDeputy Vice President Deepwater and Subsea

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DW Production

kboe/d

500

Leader in Africa

Giant developments: Moho Nord, Kaombo, Egina

Leveraging existing facilities with short cycle projects

Future projects: Owowo, Preowei

Growing in Brazil

Sanctioning world-class Libra field

Strategic Alliance with Petrobras: Lapa/Iara, first pre-salt IOC operator

Maturing exploration portfolio

Gulf of Mexico, the next wave

Leveraging expertise to build attractive portfolio: • Producing assets: Jack & Tahiti • Discoveries to be developed:

Ballymore, North Platte, Anchor

Growing > 100 kboe/d

Africa

Brazil

US

Other

2017 2022-27 average

1

Leveraging our deepwater expertise

10 operated FPSO in West Africa

> 600 operated deepwater wells

6 major deepwater start-ups in 2018-19

- Egina, Kaombo North, Ichthys

- Iara 1, Kaombo South

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Deepwater: a target for TOTAL Exploration, with delivery underway

• ca. 80% of Total POTEX

• Targeting

o new play opening prospects

o shallower burial / higher quality reservoirs,

• Balance between Frontier / Emerging / Mature plays

• Deeper water and harsher environment

• Lower capture and technical costs

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5

6

7

8

9

10

4

Cost discipline: structural changes towards profitability

• Continue to consolidate our DW Assets cost reduction

• Reduction of new development technical cost intensity

• Deliver projects on time and within budget

• Selectivity: high return projects, wt. avg. IRR > 15% at 50$/b

Targeting 5,5$/boein 2019

0

50

100

2014 2018

pre

lim/c

on

cep

tual

actual subsea tie-back surface cost(Angola / Nigeria / Brazil) / base 100

FID

9.7

7.4

5.95.4 5.7

2015/16 2018/19

EP operating costs (ASC392) / $/boe

-40%

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Deepwater roadmap: a consolidated and shared vision

• R&D

• Industrialisation

• Collaboration with industry

Technology / Innovation

Technology / Innovation

• Simplification

• Standardisation

• Integration

Design OptimisationDesign Optimisation

• Simplification

• Capitalisation

Drilling / operations

performance

Drilling / operations

performance

• Contracting strategy

• Project management

• Resilience to Industry cycles

Execution strategyExecution strategy

Dig

ital

Acceleration and cost reduction drivers

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R&D: provider of cost effective solutions & technologies

• One dedicated Deepwater R&D program

• Increased partnership with industry, technologysuppliers and institutes

• Strategic Alliance with Petrobras

• Agreements with other IOCs

• Rupture technologies with pilots

SPRINGS®

Unmanned FPSO Subsea to shore

AES

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Design optimisation: maximize value from very early phases

• Simplification

• Innovative design approach

• Standardisation

• Contractor led solutions

• From prescriptive approach to functional requirements

• Promotion of ‘Design to Cost’ approach

• Integrated subsea offering

Generic hullStandardised

topside modules

StandardMooring systems

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Performance: virtuous cycle towards increased profitability

• Performance turned into a mindset

• Benchmark ‘attitude’

• Performance in each and every field

o HSE: cornerstone of our operational efficiency

o Drilling: two wells for the price of one

o Field Operations: operating efficiency maximisation

o Projects: improved execution and delivery

Deepwateroperated assets

95 % operating efficiency

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Contracting / purchasing strategy: innovative solution maker

• One global procurement organisation

• Early involvement of contractors/suppliers in our developmentprocess

• Qualification of alternative and LCC suppliers

• Increase of Frame Agreements

• Bringing competition on brownfield developments

• Leveraging bundling approach for services and goods(between EP Affiliates and between Group Branches)

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Improving safety

Production Optimization Real time mobile access to

engineering data, work orders and permit data

Interactive dashboards / ambitious predictive models

Condition based Maintenance Rotating machines remote

monitoring (RAID) Subsea Eqt. condition

monitoring

Drilling real time remotemonitoring and data valorisation

Increased visibility & contextualised understanding of technical requirements

Digital: data intelligence&valorisation and new ways of working

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Deepwater: integrate climate into our strategy

• reduce environnemental footprint

o Reduce emissions (flaring, venting…)

o Further improve energy efficiency of our operations

• promote gas as a transition energy

• Engage contractors and technology suppliers

Flaringreduction

Methanecontrol

Processelectrification

Energyefficiency

CH4

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Thank You