TAILORMADE PARTNERSHIPSEXPERTISE & TECHNOLOGY

BUILDING PARTNERSHIPS FOR BETTER BUSINESS

“As long term partners, Total and Sonangol work hand-in-

hand to encourage growth and increase profits for

both parties.”

Francisca Silva, Sonangol Block 17

chairman

“We have partnered with Total over the past 75 years and we have signed

a new concession for another 40 to renew our successful partnership

and cooperation.”

Mr Abdul Munim Saif Al Kindy,

CEO ADCO

WHY SHOULD YOU PARTNER TOTAL?

Oil and gas exploration and production is both risky and costly. Not just capital costs,as societal, environmental, licensing and permitting issues all weigh heavily.Partnering can mitigate these burdens, but it also combines knowledge and

experience for the joint benefit of the companies involved. Total, with its many operations worldwide, is widely experienced in dealing

with these issues, and is able to adapt to the varied work environments faced today.With exploration and production experience in more than 50 countries and over

200 different partners worldwide, Total has been able to build strong and enduring partnerships adapting well to local cultural and economic needs.

Blaydin Point site, Ichthys LNG, Australia. © G

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About

30% of our production comes

from JV’s operated by OPCOs or NOCs

Key figures

“We welcome Total, a highly experienced operator and a world leader in the global

LNG industry, as operator of the Papua LNG Project.”

Peter Botten Managing Director of Oil Search

Partner in Elk-Antelope

“The Ichthys LNG project is the most high-profile partnership between Total and INPEX to date, but our

relationship actually dates back to the 1960s.

At INPEX, we value Total’s project management expertise, which will help

bring this project to fruition.”

Hitoshi Okawa, Director Corporate Coordination

for INPEX

WORTH NOTING

Assisting operators

Total has about 400 secondees

assisting operators around the globe.

W ith the emergence of bolder and more dynamic companies

and the increasingly complex nature of some operating models, our joint ventures (JVs) have evolved compared to our history of partnering with traditional oil majors.Newer and comparatively smaller companies have focused on the acquisition of particular license areas, often undertaking the role of operator early in exploration, before engaging with larger partners, like Total, to support, invest and potentially operate as appraisal/development progresses. Another variation has been an increased desire for local involvement byNational Oil Companies (NOCs), choosing to be more active in operations creating a need for more bespoke operating

Total prefers to build long-term partnerships and create shared value.

We like to work jointly with our partners where we listen and offer flexibility. After 80 years partnering in Qatar, in summer 2016, Total signed a 25 year agreement with Qatar Petroleum (starting July 2017) for a 30% interest in the Al-Shaheen giant oil field, becoming partners until 2042.A conventional JV may be ideal, yet we are always ready to go

THE CHANGING PARTNERSHIP MODEL

TOTAL POSITIONING: THE TAILORMADE PARTNERSHIP

further on a case by case basis to best suit individual business needs.Over the last decade, Total has broadened its asset portfolio by teaming up with new partners in areas where we wished to strengthen our own position. Total is equally enthusiastic to partner where our own expertise is key, such as in deep offshore or LNG projects where others may seek to broaden their experience.

structures. The increased use of Operating Companies (OPCOs) has been a natural consequence.Many NOCs have now expanded beyond their own national borders into the international arena, and we are committed to supporting such ambition.

Total partnering NOCs outside their own country

TOTAL PARTNERS WITH NOCs FROM ALL CONTINENTS, WITH MANY TODAY OUTSIDE OF THEIR OWN COUNTRY

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Total is respected around the world for its expertise in areas of technology and innovation, particular cases being deep offshore or other difficult to produce

hydrocarbons. We have brought innovative solutions enabling economic production where previously not viable. We believe that partnering is the ideal mechanism

by which such knowledge and expertise can be transferred and shared.

FPSO production, Pazflor, Angola. © P

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INNOVATION AND EXPERTISE WITH TRAINING AND SUPPORT

A mechanism we like to promote with such innovation is that of

encouraging knowledge transfer via the training of local staff and partners, a local content development initiative that creates shared value with the formation of a skilled local workforce. Training is structured combining both technology and investment.

◗ GOALS (Geological Operations Active Learning System) is a 3D onshore rig site training simulator that reproduces real life scenarios and replicates emergency situations in a “serious game” mode. It is based today on drilling rig operations, however other environments are being developed (e.g. FPSO exercises).

◗ We have also developed the G-Pad: a 3D interactive application that innovatively replicates geological features, such as rock outcrops. Using interactive maps it allows you to view these features, or study them in detail at different scales using explanatory videos, pictures or graphs. More than a database, it can detail the history and evolution of ancient

COMMITTED TO LOCAL

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WORTH NOTING

In 2014 Total reported over 40 million man

hours local content across just

6 projects.

landscapes. Integrating the know-how of different E&P disciplines, the G-PAD is constantly upgraded with up-to-date information and presented in an informative manner. This easy to understand scientific tool has been popular with stakeholders such as NOCs.

◗ Promoting mutual support: The Egina field development demonstrates how local content compliments a project, in turn fueling local economic development. First oil is scheduled for 2018 with plans

for 21 million hours of local workmanship, or 2,000 jobs per year, with 60,000 tons of equipment fabricated and installed in Nigeria. All the engineering design, project management and administration is also to be performed locally, meaning high quality training and personal development in all disciplines, a true knowledge transfer creating a valuable legacy of a skilled and competent workforce locally in Nigeria.

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Welding training class at the newly built Paenal Shipyard, supporting CLOV in partnership with Sonangol in Angola

The Egina project in Nigeria will support around 2000 local jobs each year.

Interactive training with G-Pad enables understanding of complex geological features.

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WIDE RANGING AND VARIED PARTNERSHIPS

Total first partnered with PTT Exploration & Production in 1990, exploring the Bongkot field

off Thailand in a joint venture. Total operated initially, but also prepared a technology transfer schedule to enable a smooth hand-over for PTTEP to become operator in 1998. Total remains active in the project today. PTTEP now has projects around the world, still partnering with Total, thus demonstrating the long term benefits of our flexible approach.

PTTEP, THAILAND

Partnering opens doors to opportunity for all parties. The exchange of knowledge works in two directions, we at Total believe in this and are always happy to engage in

such transfer, and to support our partners wherever we operate. This can be by secondment, provision of services, training programs and local content.

Expedition during the Yamal LNG project, Russia. Partner Novatek

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Total has been actively engaged in the U.A.E. since 1939, with a relationship with ADNOC, dating

from 1974, and today is partner in 5 different operating companies, both onshore and offshore. A long standing, trusting and flexible relationship has enabled these businesses to flourish. Total provides secondees of all skill levels, and recently such a Total secondee was appointed as an R&D director. Local ADNOC employees transfer between projects broadening their own knowledge base. Total also provides scientific and research material to ADNOC to support the Petroleum Institute of Abu Dhabi.

T he China National Petroleum Company (CNPC) is a large and experienced company

employing over 1 million people. The key to success with such an organization is to identify and maximize the strengths of each partner:

◗ Total’s first partnership with CNPC, in 2006, was, as operator, to explore the South Sulige tight gas field in China. Operatorship transferred to CNPC in 2010. Such a project requires good local management during development.

Total first partnered Novatek in 2009 in the Termokarstovoye project. This was followed

in 2011, by a second partnership, in Yamal LNG, with a stake in the project to develop the South Tambey gas condensate field in Ob Bay, a fully integrated LNG facility. Both projects use an operating company, however Total has remained an active and contributing partner.Support is not limited to finance, but includes the provision of teams, secondees and head office back up. Total now partners Novatek directly, demonstrating a very high level of “commitment” and a willingness to engage in substantial knowledge transfer for mutual benefit.

ADNOC, ABU DHABI

NOVATEK, RUSSIA

CNPC, CHINA

“We are delighted that leading companies

in the scientific field such as Total have chosen to provide much needed

long-term support to some of our most

talented youth.” Mohanna Al Muhairi,

Chief Operations OfficerEmirates Foundation

CNPC, with regional knowledge were able to provide this, whilst Total were able to deliver technical expertise.Total’s pragmatism and flexibility in supporting CNPC here helped pave the way to successful first gas in 2012.

◗ Partnering with CNPC (and Petronas) outside China in Iraq presented a different challenge. Each company provided expertise; however success came from mutual trust in a complicated and risky bidding process where supporting CNPC as operator was key.

ADCO delegation (an ADNOC project partner) are shown the Pangea supercomputer at the Total research centre, Pau, South of France. ©

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TOTAL S.A.

Share capital: 6,133,930,082.50 euros 542 051 180 RCS Nanterre

Exploration & Production – Paris Phone: +33 (0)1 47 44 45 46 2, place Jean Millier – La Défense 6 92078 Paris La Défense Cedex – France

Exploration & Production – Pau Phone: +33 (0)5 59 83 40 00 Avenue Larribau – 64018 Pau Cedex – France

www.total.com

total.com

Supplying affordable energy to a growing population, addressing climate

change and meeting new customer expectations are the three main challenges

Total must meet as an energy major.

That is what guides what we do. With operations in more than 130 countries,

we are a top-tier international oil and gas company. We are also a worldclass

natural gas operator and a global solar leader through our affiliate

SunPower. Our activities span oil and gas production, refining, petrochemicals

and marketing. Demonstrating their commitment to better energy, our

100,000 employees help supply our customers worldwide with safer, cleaner,

more efficient and more innovative products that are accessible to as many

people as possible. Our ambition is to become the responsible energy major.

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