OREANDA-NEWS. September 5, 2012. In second-quarter 2012, Brent averaged USD 108.6 per barrel, down 7% from USD 117.0 in the prior-year period and 8% from USD 118.6 in first-quarter 2012.

The selling price of the Mandji and Rabi Light crude oil grades marketed by Total Gabon averaged USD 108.0 per barrel in the second quarter of 2012, down 5% from USD 113.7 in second-quarter 2011 and 3% from the first-quarter 2012 average of USD 111.5 per barrel.

Production

Total Gabon’s equity share of operated and non-operated oil production averaged 43,700 barrels per day in the second quarter, down 6% from 46,700 barrels in the prior-year period and 11% from 49,100 barrels in first-quarter 2012. The year-on-year decrease was due to the shutdown of six platforms on Grondin in May 2012, as part of the 2012 major integrity works program, and to naturally declining output from certain fields. These negative factors were partially offset by a reduction in unscheduled shut-ins and by production from new wells on Torpille, Avocette and Anguille. The 11% decrease compared to first-quarter 2012 was primarily attributable to the Grondin shutdown in May.

Revenues

Revenues amounted to USD 426 million in second-quarter 2012, versUSD 346 million in second-quarter 2011 and USD 416 million in first-quarter 2012. This evolution was attributable to the higher volumes marketed during the period, resulting from the oil loading planning at the export terminal.

Net Income

Net income in second-quarter 2012 amounted to USD 76 million, down 4% from USD 80 million in second-quarter 2011, primarily as a result of an increase in depreciation, amortization and provision expense. Compared with first-quarter

2012, net income for the second quarter was stable.

Capital Expenditure

Capital expenditure stood at USD 165 million in second-quarter 2012, up from USD 162 million in the prior-year period. Second-quarter 2012 capital spending mainly concerned the on-going redevelopment of the Anguille field, the program to replace electrical systems on the Anguille and Torpille fields, and drilling programs on the Torpille and Avocette fields.

Funds Generated from Operations

In light of the above, funds generated from operations amounted to USD 322 million in second-quarter 2012, compared with USD 165 million in second-quarter 2011.

Selling Price

The average selling price of Brent stood at USD 113.6 per barrel in the first half of 2012, an increase of 2% compared with the prior year period.

The selling price of the Mandji and Rabi Light crude oil grades marketed by Total Gabon averaged USD 109.7 per barrel in the first six months of 2012, up 2% from USD 107.8 in first-half 2011.

Production

Total Gabon’s equity share of operated and non-operated oil production averaged 46,400 barrels per day in first- half 2012, down 2% from 47,600 barrels per day in the year-earlier period. The decrease was a result of the natural decline in output from certain fields and the shutdown of Grondin in May 2012, which were partially offset by a reduction in unscheduled shut-ins and by production from new wells on Torpille, Avocette and Anguille.

Revenues

Revenues for first-half 2012 amounted to USD 843 million, up 16% from USD 727 million in the prior-year period. The increase was due to a combination of the higher volumes marketed during the period and higher average selling prices.

Net Income

Net income for first-half 2012 amounted to USD 153 million versUSD 164 million in first-half 2011. The 7% decrease was mainly attributable to the higher operating costs caused by a temporary increase in activity, with the on-going redevelopment of the Anguille field, the replacement of electrical systems on the Anguille and Torpille fields, and the 2012 major integrity works program.

Capital Expenditure

Capital expenditure stood at USD 350 million for first-half 2012, versUSD 255 million in the prior-year period. Spending during first-half 2012 mainly concerned the on-going redevelopment of the Anguille field, the program to replace electrical systems on the Anguille and Torpille fields, and drilling programs on the Torpille and Avocette fields.

Funds Generated from Operations

In light of the above, funds generated from operations amounted to USD 435 million in first-half 2012, versUSD 380 million in the prior-year period.

Shareholders’ Meeting and Dividend

The payment of a net dividend for 2011 of USD 34.00 per share was approved at Total Gabon’s Annual Meeting of Shareholders in Libreville on May 31, 2012. Representing a total amount of USD 153 million, the dividend was paid out from June 8 at an equivalent amount of €27.41, based on the European Central Bank’s rate of €0.8063 per USD 1 on May 31, 2012.

Exploration

In June 2012, Total Gabon sold a 21.25% interest in the Diaba license to Marathon Upstream Gabon. Total Gabon continues to operate the license with a 42.5% stake, alongside partners CIE Gabon Diaba Ltd (21.25%), Marathon Upstream Gabon (21.25%) and the Gabonese Republic (15%). In the lead up to the drilling planned for first-quarter

2013, preparations continue, in particular with an environmental impact study started in June 2012. On the Mutamba license, the T48 drilling rig has been contracted to start drilling a well in the fourth quarter of 2012, and on the Nziembou license, the 2D seismic survey initiated in the first quarter was completed in July.

Development

Anguille Field Redevelopment

The AGMN wellhead platform was inaugurated by Gabon’s Minister of Oil, Energy and Hydraulic Resources on May 29, 2012. A few days earlier, the Setty drilling rig arrived in the area to begin drilling the project’s 21 Phase 3 wells. Drilling began in June, after the conductor pipes were installed for all of the wells. The laying of the 18-inch gas pipeline between Anguille and Torpille, which commenced in late June, is also still underway.

Other Operated Activities

The 2012 major integrity works program begun in early 2012 to extend the life of the platforms on Grondin and Torpille is proceeding as planned. An initial 21-day turnaround took place in May, involving six platforms on Grondin. During the shutdown, a large number of pipes and valves were replaced and all of the pressure vessels were inspected and repaired. After the shutdown, work on the platform structures continued until the end of August. Preparations have begun for the maintenance turnaround at Torpille, which is scheduled for late September.

On the onshore PG2 site, construction of the power plant to supply the Torpille and Anguille fields is on the way to completion. Offshore, the electrical equipment is still being installed, along with the structures to expand the platforms to house the equipment.

Also onshore, on the Avocette field, the AVO 10 well came on stream in July and the AVO 12 well is being drilled. Offshore, on the Torpille field, the TENM 05 well was also brought on stream in July, 2012.