FOREWORD TOTAL : THE WORLD FIFTH - LARGEST ENERGY CORPORATION ...

Jakarta Office :
Plaza Kuningan, North Tower
Jl. HR. Rasuna Said Kav. C 11-14
Jakarta 12940, Indonesia
T : +62 (21) 523 1960 F : +62 (21) 523 1888
Telex : 60980 Total JIA PO.Box : 1010/Jkt 10010
East Kalimantan District Office :
Jl. Yos Sudarso
Balikpapan 76123, East Kalimantan - Indonesia
T : +62 (542) 53 3999 F : +62 (542) 53 3888
Telex : 37101 BppIA PO.Box : 606/Bpp 76106
Design by DESIGNroom - Source of photos Uman Lionel, Weisflog Rainer, Von Der Fecht Florian, Guillou Alain, L. Zylberman, Jezz O’Hare, Guntur Primagotama -
INTERNAL COMMUNICATION DEPARTMENT 2008
EXPLORATION & PRODUCTION
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FOREWORD
TOTAL : THE WORLD FIFTH - LARGEST ENERGY CORPORATION
TOTAL E&P INDONESIE : FORTY YEARS OF ACTIVE DEVELOPMENT
A Notable History ~ A View to the Future
A FIRM COMMITMENT TO HEALTH, SAFETY,
AND ENVIRONMENT (HSE)
OPERATIONS
Bekapai & Handil Fields
Senipah Oil & Condensate Handling Terminal
Tambora and Tunu Fields
Peciko Field
Sisi & Nubi Fields
South Mahakam
Largest Supplier to Bontang LNG Plant
DEVELOPING THE BUSINESS FOR MUTUAL BENEFIT
A COMMITMENT TO SUSTAINABLE DEVELOPMENT
PARTICIPATING IN LOCAL DEVELOPMENT
DEVELOPING OUR INTERNAL RESOURCES
MOMENTOUS MILESTONE

Mahakam Contract Area FOREWORD
In a time of steady rewards and gratifying returns,
TOTAL E&P INDONESIE, the largest producer of gas
in Indonesia, faces evolving challenges, as both society
and world economies are dynamic entities that never
cease to grow, evolve and change.
Our Company has experienced tremendous progress
in the decades since it first entered into an exploration
and production agreement with the Government of
Indonesia in the late 1960s, and today we form an
important component of the worldwide TOTAL
operation - one of the world's largest Oil & Gas
Corporations, with fully-integrated upstream and
downstream capabilities.
We are proud to have been an integral part of economic
development and social progress in Indonesia, the
fourth most populous nation in the world, and a growing
democracy with a sense of vitality, enterprise and
optimism. As TOTAL E&P INDONESIE has evolved
and developed in these decades, Indonesia itself has
emerged as a promising business, industrial and
economic force in global affairs.
I am pleased to be able to say that the business
outlook for TOTAL E&P INDONESIE is excellent, we
have been appraised and judged to adhere to the
tenets of good corporate governance and corporate
social responsibility, and we are in balance with
production and market demand.
Nevertheless there are issues that should be addressed,
as part of the future strategic direction of TOTAL.
Non-renewable energy resources - the kind the world
depends on for its daily activities - are ever more central
in the public's awareness these days, and that poses
a specific issue for a company like TOTAL E&P
INDONESIE. We strive to fulfil inherently diverging
goals of all stakeholders, in a time of sharpening
contradictions, specifically the equitable balance
between gas export and domestic supply should be
found within the general framework of energy supply
and demand problematic of the country.
The environmental consequences of fossil fuel
combustion are another major issue absorbing the
commitment of people everywhere. Fortunately, the
environmental sciences have grown and developed
remarkably in recent decades, allowing TOTAL E&P
INDONESIE to study, craft and implement effective
environmental safeguards in every stage of our
operations.
TOTAL has posted some of the highest growth rates
in the industry over recent years, and its Exploration
& Production operations have come in with cutting-
edge technology and ever more sophisticated
techniques to coax elusive hydrocarbon resources
from under the earth.
The accent is on performance, in all its aspects: human,
technical, monetizing and social. As partners in progress
with Indonesia and its peoples, TOTAL E&P INDONESIE
is expected to share the best and the latest in doing
business here. As we celebrate our 40th Anniversary
in this nation we remain firmly committed to this goal.
Philippe Armand
President Director & General Manager
TOTAL E&P INDONESIE

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The fifth largest publicly-traded integrated energy company
in the world, and a major chemicals manufacturer, TOTAL
is a multinational energy company operating today in
more than 130 countries; the Company work force currently
registers nearly 130,000.
TOTAL is committed to leveraging its innovation and
applying its initiative to reliably fulfil humankind's energy
needs, while conducting our business according to the
highest professional standards.
In developing the earth's natural resources, we are
dedicated to protecting the environment, integrating our
operations into host country cultures and working side
by side with the local government to empower the local
community. The Company maintains an ongoing
commitment to transparency, dialogue and respect for
the rights and aspirations of others.
THE WORLD FIFTH - LARGEST ENERGY CORPORATION
TOTAL's upstream business encompasses oil and natural
gas exploration, development and production, along with
coal, gas and power operations.
The Group explores for oil and gas in 42 countries and
produces in 30 of them. Our main production regions are
the North Sea, Africa and the Middle East, followed by
South-East Asia and North & South America.
TOTAL has been active in the downstream segment of
the gas chain for 60 years. We are also a leader in the
gas market, with strong positions in Liquefied Natural Gas
(LNG) and fast-growing operations in gas distribution and
power generation from combined cycle gas plants and
renewable energies in Europe, the Middle East and Latin
America. TOTAL is a partner in 5 producing gas liquefaction
plants, accounting for nearly 40% of LNG world production.

The Company also trades and markets electricity and
coal. Determined efforts to discover and develop
renewable energy resources are a key part of the
downstream operation.
As of December 31, 2006, TOTAL held interest in 27
refineries (including thirteen that it operates), located
in Europe, the United States, the French West Indies,
Africa and China.
TOTAL's refining capacity in Western Europe is 2,342
kb/d, accounting for more than 85% of the Group's
global refining capacity and making TOTAL the leading
refiner in this region.
Of the nearly 17,000 service stations TOTAL operates
worldwide - mostly in Europe and Africa - approximately
50% are company-owned. A pilot retail operation is
planned to start up in the Jakarta area in 2008.
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TOTAL is today one of the world's largest
integrated chemical producers, and our chemicals
segment is organized into Base Chemicals
activities (petrochemicals and fertilizers) and
specialties activities, which includes the Group's
rubber processing, resins, adhesives and
electroplating.
TOTAL E&P INDONESIE - Company Profile

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Four decades ago on the 6th July 1968 TOTAL, through its
100% wholly owned subsidiary in Indonesia, TOTAL E&P
INDONESIE, signed the first production sharing contract
with the Government of Indonesia, starting our journey to
tap the nation's impressive petroleum potential (Jambi PSC).
In 1970, TOTAL E&P INDONESIE farmed in as operator to
Japanese company Japex's (now INPEX) Offshore Mahakam
Block (Mahakam PSC) in East Kalimantan. Ever since our
mission has been to explore, develop and then to produce
oil and gas. Following the discoveries of the oil fields of
Bekapai in 1972 and Handil in 1974, and then a series of
gas fields - the giant Tunu field in 1977, Tambora in 1980,
Peciko in 1983, Sisi and Nubi fields in 1986 has today made
TOTAL E&P INDONESIE the largest gas producer in Indonesia
since 2000.
The extensive field development programs have fulfilled gas
sales commitments for both export and domestic markets.
FORTY YEARS OF ACTIVE DEVELOPMENT
A Notable History ~ A View to the Future
Four major production centres in the Mahakam Delta and
associated field operations involve a work force of more
than a thousand people, the vast majority of whom are
Indonesian nationals. It is a major logistic challenge, with
daily movements of boats, helicopters, barges, well servicing
vessels and drilling rigs.
Production facilities include 562 producing wells, a gas
processing capacity of 3000 MMSCFD, 1200 km of pipelines,
33 gas turbines and 15 offshore production platforms, 34
GTS's (Gathering & Testing Satellite) swamp platforms and
an oil tanker SBM (Single Buoy Marine) loading facility.
As the existing energy deposits approach maturity, newer
and more efficient technologies are being exploited to recover
a higher percentage of oil & gas from current reservoirs,
while TOTAL E&P INDONESIE continues to search out
promising new areas of exploration.

TOTAL E&P INDONESIE manages oil & gas
extraction and processing, human resources,
environment, and the welfare and development of
communities surrounding our operational areas.
This is in accordance with our duty to fulfil obligations
of Corporate Social Responsibility and Sustainable
Development Policies, working in the best interests
of all stakeholders.
TOTAL E&P INDONESIE - Company Profile
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TOTAL E&P INDONESIE Office in Balikpapan & Jakarta

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TOTAL E&P INDONESIE has dedicated itself to the care and protection
of natural resources, both human and environmental, over the years.
This commitment has been acknowledged widely by independent
assessors, and among the many awards for safety and environment
protection the Company has received the following:
Zero Accident Award from the Ministry of Manpower &
Transmigration, presented by Her Excellency the President of
the Republic of Indonesia, Megawati Soekarnoputri, in January
2004.
Zero Accident Award for Bekapai, NPU, Project and Drilling
activities and Golden Flag Certificate for HSEMS, presented
by His Excellency the Vice President of the Republic of Indonesia,
Jusuf Kalla, 2005.
"The Most Caring Company," amongst oil & gas, mining and
support industries in 2005.
Blue classification for operational sites (CPU, NPU, CPA) from
Ministry of Environment as acknowledgement of company's
effort to comply with environmental regulations (PROPER
program) in 2005.
Overall Winner in the 10th Fire and Rescue Challenge, 2006.
OHSAS 18001 : 1999 Occupational Health and Safety
Management System Requirements in 2006.
A FIRM COMMITMENT TO HEALTH,
SAFETY AND ENVIRONMENT (HSE)
Ongoing Company training programs keep employees and contractors
alert and focussed on safety regulations, with safety as the supreme
operational priority. Each production installation is systematically
audited, to confirm that the established safety and environmental
standards are adhered to.
Each project is subject to an Environmental and Social Impact
Assessment (EIA/ESIA) at TOTAL E&P INDONESIE, to identify and
minimise potential impacts on both human and natural environments.
Another safety assurance is the Oil Spill Contingency Plan (OSCP),
which is designed to ensure prompt and effective response in case
of any accidental pollution in drilling or production. There is also a
waste management procedure with strictly-regulated procedures and
periodic monitoring. These programs are coordinated closely with the
local community in each operating area, to assure environmental
protection.
Environmental objectives in production areas includes minimizing gas
flaring and full water treatment before discharge into the Mahakam
River or the sea, with plans to re-injected production water in the near
future.

These and other activities signify that TOTAL E&P INDONESIE
Environmental Management System (EMS) conforms to the ISO 14001
Standard, which the Company has been rewarded.
Biologists appraise the Mahakam Delta as containing a rich biodiversity,
and this has been a major consideration in all decisions involving
developmental activities. One high-profile program involves restoration
of damaged mangrove sites, with replanting of nearly four million
mangrove seedlings.
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Bekapai's discovery in 1972 was an early milestone for TOTAL E&P
INDONESIE. The complex field covers some 20 square kilometres, just
off the East Kalimantan coast in the Makassar Strait. Installations are
sited in water around 30m deep, and the first phase was thus a floating
unit. This was replaced by a multi-well platform linked to central processing
and living quarter platforms.
Up to the present over 100 distinct oil reserve reservoirs have been
identified at Bekapai, at depths ranging from 1,300 to 2,500 meters. By
end-2006, 76 wells were already drilled from 9 multi-well platforms.
Seventeen of these are still active. Current production level of oil is 1,500
BOPD and well head gas 8 MMSCFD, corresponding to around 2750
boepd.
TOTAL E&P INDONESIE - Company Profile
Bekapai is, at present, considered a mature oilfield, as approximately
95% of recoverable reserves have been extracted, but new wells drilled
during the course of 2007 have shown that potential remains in the field.
Handil is sited among swampy shores partially submerged at high tide
in the Mahakam River Delta. These areas are covered with a thick forest
of nipa-nipa vegetation.
With an area of some 40 square kilometres, Handil Field requires swamp
barge rigs for the drilling of deviated wells along island banks.
OPERATION
Bekapai and Handil Fields
Main zone reservoirs are concentrated between 1,500 and 2,700 meter
depth, with hydrocarbon deposits spanning a complex superimposition
of more than 500 individual delta sand deposits between 400 and 3,200
meters of depth.
Drilling first yielded promising results in March 1974, with production
commencing some 15 months later, peaking at 200,000 BOPD in March
1977.
To further boost overall recovery TOTAL E&P INDONESIE applied first
water injection and then gas lift as depletion became more pronounced.
Tertiary recovery, involving gas miscible injection into water-flooded
reservoirs, commenced in 1996, and in 2001 an air injection pilot was
started up, to test a new oil production enhancing technique.
By end-2006, more than 350 wells had been drilled at Handil; current
production is 23,000 BOPD and 130 MMSCFD of well-head gas.
Cumulative production (up to end-2006) stood at 850 Mbbl of oil (including
condensates) and 1.771 TCF of well-head gas.
It is estimated that Handil is fully matured as far as conventional petroleum
potential is concerned, as 95% of recoverable oil reserves have been
extracted. A pilot programme is planned starting in 2010 to test the
feasibility of polymer/surfactant injection to recover residual oil inaccessible
by conventional production methods.

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Senipah Oil and Condensate Handling Terminal
The Mahakam Delta, while rich in hydrocarbon deposits, lacks the
deep-water access necessary for large tankers; thus a permanent
oil-handling terminal was built, near the coastal village of Senipah,
north of Balikpapan. Senipah oil terminal started-up operations
in 1976, to deal with rapidly-increasing production in the mid-
1970s. To date more than 3,000 vessels have docked at Senipah
Terminal, to lift more than 1 billion bbl of crude oil and condensate.
Oil and gas from Bekapai are transported via a 12 inch submarine
pipeline, whilst oil from Handil is sent via a 20" buried pipeline to
Senipah where field products are separated and stabilized, before
oil is sent to storage and then exported from the Single Buoy
Mooring (SBM).
Tank farms with a storage capacity of 2.6 MMbbl, along with an
SBM loading facility capable of handling 125,000 DWT tankers,
were constructed at Senipah. From June 1996 a Condensate
Stabilization Unit (CSU) allowing condensate marketing after treatment
and stabilization, came on-line. Current processing capacity of the
CSU is 40,000 bbl of condensate per day.
Gas export for TOTAL E&P INDONESIE began in 1982, when
associated gas from the Handil field was first sent to the Bontang
LNG Plant. This gas production was later augmented from Tambora,
Tunu, Peciko and the latest fields to start up in November 2007,
Sisi-Nubi. Today gas production from Bekapai and Peciko is also
processed within the Senipah perimeter, to be joined by gas from
the yet to be developed South Mahakam fields.
TOTAL E&P INDONESIE - Company Profile

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Tambora and Tunu Fields

Tambora is an onshore gas field, sited in the central part of the
Mahakam River Delta. First discovered in 1974, it was the catalyst
for the discovery in 1977 of the giant Tunu Field, a 400 square
kilometre resource stretching 80 kilometres from north to south
along the Mahakam River Delta coastline. Combined production
from these two fields is currently around 1,500 MMSCFD.
Tambora began production in 1989 and Tunu a year later;
hydrocarbons from these two fields collected at wellhead Gathering
and Testing Satellites (GTSs), then sent to the project's first Central
Processing Unit (CPU-1), an installation consisting of a gas
separation unit, gas dehydration unit, Oily Water Treatment Unit
(OWTU), condensate pumping and two electric gas turbine
generators; CPU-1 has a processing capacity of 350 MMSCFD.
In a second development phase built and brought on-stream
in 1994, two additional GTSs units were installed, together with
new delivery lines and a second processing , CPU-2, with an
additional capacity of 900 MMSCFD. Two more GTSs were
added in 1995.
Production from the Northern extension of the Tunu field began
in late 1998 following a project to install four new GTSs, linked
to a new treatment centre in the North part of the swamp (the
Northern Processing Unit or
NPU). This phase of the
development was completed
with new gas and condensate
export lines, including a new
metering centre installed close
to Badak known as the TATUN
- Tambora Tunu Receiving
Facilities (TRF).
As the reservoir pressure declined, it became necessary to
install compression facilities in the field. The first of these
consisted of a medium-pressure compression platform installed
next to CPU2 was the Tunu Compression Platform - TCP, with
a 900 MMSCFD capacity, a medium-pressure (MP) pipeline
network, along with various manifolds, scrapper traps and air
cooler surface platforms. This came on stream in 2000, and
was followed a couple of years later by a similar project in Tunu
North - known as the Northern Compression Platform - NCP.
In parallel to the compression facilities, additional wellhead
GTS's were installed as the field limits were extended
Northwards and Southwards.
Today there is still an intensive development effort in Tunu and
to a lesser extent Tambora, with the drilling of some 60 wells
per year. Projects in progress include the Tunu Phase 11 Project
consisting of the installation of Low Pressure (LP) compression
facilities for the southern and northern parts of the field to
ensure that even such lower wellhead pressures are achieved
to maximise recovery.
At the same time, the Tunu Phase 12 project consists of
construction 3 GTSs and adjacent wellhead platforms
(connected in a modular fashion to a common production
header and test). The 3 GTSs are planned to be ready for
drilling in 2009. This project is notable as being the first all
steps of the project, including Basic Engineering, were carried
out in Indonesia.
A PoD (Plan of Development) is currently in the approval
process to add a further two GTSs (Tunu 13).
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Peciko Field
A major achievement and showpiece for TOTAL E&P INDONESIE,
the Peciko Field has been a spectacular success story since
starting up production in end-1999. The volume of output raised
the Company to the position of the largest gas producer in
Indonesia just one year later.
Contained within an area of some 300 square kilometres, in
water depths ranging from 30-50 metres offshore, Peciko is
geologically complex with gas trapping both structural and
stratigraphical. The reservoir section within the field is composed
of a series of very fine - to medium - grained sands distributed
through shale siltstone deposits. The main reservoir sequence
is at 2,100 to 3,900 metres below sea level.
Peciko was first discovered in 1983, but its commercial viability
was not confirmed until 1991 when the NW-1 well was drilled.
Like Tunu, Peciko is also a giant gas field.
Today there are six 12-slot manifold wellhead platforms (MWP
A, B, C and SWP G, K & E) and four 24-inch sealines connecting
the offshore field to onshore installations. The onshore processing
is at Senipah (PPA-Peciko Process Area), linked to gas exports
via an 82-kilometer 42-inch onshore export pipeline. This massive
project first came on stream in December 1999.

Peciko condensate from PPA is mixed with Tunu condensate,
then processed in the Senipah Condensate Stabilization Unit
(CSU), before being exported through the Senipah SBM.
Since the start up of the field, two trains of gas compression,
each with a capacity of 450 MMSCFD have been added.
Development continues with the 7 th wellhead platform recently
installed, and a project underway to install LP (Low Pressure)
compression onshore adjacent to the existing processing facilities.
Development engineers and subsurface teams are currently
working on further projects to ensure that the full potential of
this field is realised.
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Sisi & Nubi Fields
These two offshore gas fields were first discovered in
1986, located 25 km offshore from the Mahakam Delta
and 30 km to the Southeast of the Tunu field.
Comprehensive evaluation was undertaken, with a
total of 19 exploration and delineation wells drilled.
The first phase of Sisi Nubi Project Development
included construction of the Sisi Manifold and Wellhead
Platform (MWPS), the Nubi Manifold and Wellhead
Platform (MWPN), one Nubi Satellite Platform (WPN2)
and one slug catcher platform (SNPS). A 26-inch main
export pipeline, a 22-inch interfield pipeline and a 16-
inch trunkline are laid during this phase. This project
is the latest Greenfield development carried out by
TOTAL E&P INDONESIE, with first production coming
on stream on 20th November 2007.
Both fields are characterised by multiple layers of
poorly consolidated sands, and the 27 development
wells to be drilled to complete in phase 1 required
advanced drilling techniques. Development drilling
started in September 2007 followed by production
Start-Up in November 2007 to reach production
plateau of some 350 MMCFD within the next 18
months. Further development phases are foreseen
later to extend the plateau period.

This series of small, complex fields are promising
production sources for future years, and are located
approximately 35 kilometres offshore, at a sea depth
of 45 to 60 metres, some 58 kilometres South of the
Peciko Field.
The Stupa Field was discovered in 1996, yielding
strongly, with highly over-pressured sections. Four more
wells were drilled in 1998, confirming the scale and
scope of the accumulation. The plan of development
is currently under the approval process with the
Authorities.
Additional successful exploration drilling on the West
Stupa and East Mandu structures conducted in 2007
further verifying the potential of the area. Development
studies are currently being fast-tracked so that these
fields can be included in the original Stupa development
and brought into production by the beginning of the
next decade.
Geoscientists are now working with the latest seismic
imaging techniques to identify additional upside in this
area.
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South Mahakam

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Largest Supplier to Bontang LNG Plant
In collaboration with two other East Kalimantan producers, TOTAL
E&P INDONESIE supported the development of the Bontang LNG
Plant in East Kalimantan, a modern engineering wonder, where
gas piped north from TOTAL E&P INDONESIE fields is processed
and liquefied for shipment to markets in Japan, Korea and Taiwan.
The Bontang LNG Plant today remains one of the largest gas
liquefaction plants in the world.
The Bontang gas feedstock is supplied from the operations of
TOTAL E&P INDONESIE, Vico Indonesia and Chevron Indonesia
Company through two 42-inch and two 36-inch pipelines,
beginning in Badak and ending some 60 kilometers further North
in Bontang. The three East Kalimantan PSCs currently deliver
over 2,800 MMSCFD of natural gas to Bontang together with a
further 400 MMSCFD to domestic industrial consumers that have
grown up around the LNG plant; today around 80% of this
production is operated by TOTAL E&P INDONESIE.
Eight gas liquefaction trains (Trains A-H), each fitted with LPG
extraction capability, have an annual production capacity of 22.3
million tons of LNG, nearly one million tons of LPG and 10 MM bbl.
of condensates. The Bontang LNG Plant is operated by PT Badak
NGL, a non-profit firm owned jointly by Pertamina (55%), Vico
Indonesia (20%), JILCO (15%) and TOTAL E&P INDONESIE (10%).
Trains A & B began commercial operation in 1977, with pioneer
LNG shipment to markets in Japan. Rising LNG demand in that
country supported the development of Trains C & D, in 1983. Train
E was completed in 1990, to support LNG sales to markets in
Taiwan.
Higher Japanese demand led to the development of Train F (1994)
and Train G (1997). Market demand from Korean and Taiwanese
buyers was the driving force behind the completion of Train H, in
1999.
In addition to the construction of
these 8 gas liquefaction trains,
debottlenecking projects allow an
increased capacity and enhanced
reliability of the plant at present.
Bontang can handle up to 400
mixed cargoes per year, and to
date, more than 6,600 LNG mixed
cargoes have been safely loaded
and delivered to buyers in Japan,
South Korea and Taiwan.
The Bontang LNG Plant is truly a
state-of-the-art complex, and has
been granted numerous awards
and certifications for its safety and
management achievements.

DEVELOPING THE BUSINESS
FOR MUTUAL BENEFIT
TOTAL E&P INDONESIE is continually exploring new avenues of
enterprise, in the effort to expand its markets and add value to
the Company. While in some ways the "pull" of markets for energy
is considered a sufficient force for successful business, TOTAL
E&P INDONESIE sees the need for a determined "push" into new
and relatively unexplored regions.
Two areas of business development are of particular focus at
present.
The first one is managing patrimonial interests of the Mahakam
PSC, where TOTAL E&P INDONESIE has built an excellent track
record over 40 years, in terms of experience, technology and a
highly trained and well motivated workforce. The remaining
quantities of undeveloped gas would justify operations beyond
the expiration of the current PSC. Long term plan shows huge
activities for the next 5 years in production, drilling and projects
in order to meet the long term production objectives in a safe
manner.
The second one is TOTAL E&P INDONESIE also searches out
new opportunities throughout the country, the most recent example
of which has been the signing of the Southeast Mahakam Block
in early 2007.
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A COMMITMENT TO
SUSTAINABLE DEVELOPMENT
Since commencing operations in 1970, TOTAL E&P INDONESIE has
become known as a prudent operator of the Mahakam PSC, with a
sincere commitment to Sustainable Development, in line with
worldwide TOTAL Group policy. These principles, developed according
to the particular challenges of the Oil & Gas industry, are organised
around three main themes:
Managing and reducing any negative impact of operations on
the environment, including safety and health issues.
Creating value for all stakeholders, including Human Resources
and social policies for employees, relations to suppliers and to
local communities.
Better preparing for the future by promoting alternative sources
of energy and a better use of products.
TOTAL E&P INDONESIE is adapting this policy to the local context,
by putting emphasis on environment, safety, ethics and integration
of our operations with local communities, as the external stakeholders
of its operations activities (societal initiatives).

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TOTAL E&P INDONESIE - Company Profile
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It is clearly necessary for TOTAL E&P
INDONESIE to have the acceptance,
cooperation and support of communities
surrounding operational areas when
conducting operations.
Starting in 1981, TOTAL E&P INDONESIE
has demonstrated its commitment to
maintain good relations with local
communities and to empower them by
conducting various community
development projects since 1981. For
this sustained commitment, TOTAL E&P
INDONESIE received an award for social
empowerment of local communities from
the Coordinating Minister for People's
Welfare in 2007.
PARTICIPATING IN
LOCAL DEVELOPMENT
TOTAL E&P INDONESIE has organised
its activities towards local communities
(societal activities) around seven major
topics: health, education, local economic
development, environmental protection,
infrastructure, access to energy, social
studies and mitigations. It is seeking to
develop its societal activities in
partnership with local authorities and
local non - governmental organisations,
in order to reinforce their sustainability.
As an example of this action, TOTAL E&P
INDONESIE has concluded a partnership
with the UNDP (United Nations
Development Program), INPEX and the
Indonesian central and local government
authorities, aiming at developing capacity
building of human resources, promoting
economic development and livelihood in
the Delta area, replanting mangroves and
clarifying the issues related to land
occupation.

Since 1999, in the frame of its infrastructure programme,
TOTAL E&P INDONESIE assists in developing local
infrastructure in the Mahakam Delta and surrounding area
such as 14 kilometers of wooden pathways and 54
wooden bridges. Forty-nine small-scale prayer centres
(both mosques and churches) were built or renovated.
10 diesel-powered electricity generating sets were also
installed in 5 villages, serving a total of 2,300 inhabitants.
The numerous natural disasters faced by the country in
the last few years have led TOTAL E&P INDONESIE to
conduct several programs to assist communities in
emergencies and helping with reconstruction. It focused
its assistance towards Aceh victims after the tsunami in
2004, Yogyakarta and Pangandaran after the earthquake
in 2006, and Jakarta after the 2006 floods.
TOTAL E&P INDONESIE - Company Profile
21

TOTAL E&P INDONESIE - Company Profile
22
DEVELOPING OUR
INTERNAL RESOURCES
In a time of accelerating technological change and rapid social evolution -
as is found in the enterprising population of contemporary Indonesia - certain
constants remain. Any business that wishes to maintain a competitive
advantage will pay close attention first of all to the welfare, competency,
commitment and upgrading of its precious human resources.
In practice this takes many forms. Regular upgrading is perceived by
Management as "people investment", as important in its way as any other
form of investment. TOTAL E&P INDONESIE has over the years invested
heavily in the competencies and career development and well-being of its
work force. Employee training has always been a key priority, with leading-
edge, expert programs being made available, both in Indonesia and at
professional facilities abroad. TOTAL E&P INDONESIE inaugurated its training
schemes as early as 1975, with the "Pre-Employment Training Program"
(PET), which aimed to prepare the skills of incoming graduates for positions
such as Supervisor, Operator or Technician. This 14-24 month training
program included an intensive English course, supervised field experience
and on-the-job training.

An effective mentoring system is currently in operation, involving knowledge
transfer from experienced expatriates or national employees (Mentors) to
young recruits (Mentees), with cross-functional emphasis over a 6-9-month
period. This program, known as SMART, has the further objective of stimulating
open, frank and honest communication between generations and job levels.
A Technical Development Exchange Program, first inaugurated in 2002, has
successfully catalyzed the transfer of business skills through exchanges of
site personnel among subsidiaries.
Highly potential employees are sent on International Assignment to
Headquarters or other TOTAL affiliate and sites around the world to accelerate
their technical competency. Leadership and "global" way of thinking is also
part of the goal of International Assignments.
The major focus of HR is summed up in the following principle:" Recruit the
best, develop, maintain and retain."
Improvement in the work environment means building industry with a human
face - a friendly, supportive and comfortable place to spend a career.
TOTAL E&P INDONESIE - Company Profile
23

1968
1970
1972
1974
1975
1976
1977
1980
1982
1983
1984
1986
1988
1989
1990
MOMENTOUS MILESTONE
• Signing of Production Sharing Contract (PSC) with Pertamina
for the Jambi region of South Sumatra.
Incorporation of TOTAL E&P INDONESIE.
• Interest and operatorship for the Mahakam and Bunyu,
East Kalimantan areas are assumed, in collaboration with JAPEX
(today known as INPEX Corporation).
• Discovery of Bekapai offshore oil field, near the Mahakam Delta.
• Discovery of Handil and Tambora oil fields within the Mahakam
Delta.
• Oil production start-up at Bekapai.
• Oil production start-up at Handil.
• Completion of Senipah Oil Storage and Loading Terminal
• Signing of Muturi PSC, Irian Jaya (today known as Papua
Province).
• Mahakam oil production peaks, at an average of 230,000 BOPD.
• Discovery of Tunu gas field, Mahakam River Delta.
• Production start-up of Bontang LNG Plant.
• Discovery of Tambora gas field, Mahakam Delta.
• First deliveries of Handil and Bekapai associated gas to the
East Kalimantan gathering system, for deliveries to the
Bontang LNG Plant.
• Discovery of Peciko gas field, offshore near the Mahakam Delta.
• Signing of Melawi PSC, West Kalimantan.
• Start-up of Tambora oil production.
• Discovery of Sisi gas field, offshore from the Mahakam Delta.
• Signing of Muara Kampar PSC, Central Sumatra.
• Signing of Tengah JOB, East Kalimantan.
• Interest taken in the Tuban Block, East Java.
• Commissioning of LPG Extraction Plant at Bontang.
• Signing of Lahat JOB, South Sumatra.
• Start-up of Tambora gas production.
• Start-up of Tunu gas production.
• Start-up of Tambora-Tunu CPU, Phase I.
• Signing of West Natuna PSC, South China Sea.
1991
1992
1993
1994
1995
1996
1997
1999
2000
2003
2004
2005
2006
2007
• Extension of Mahakam PSC until 2017.
• Interest taken in Rebi, Kai and Tanimbar Blocks, Banda Sea,
East Indonesia.
• Discovery of Nubi gas field, offshore from the Mahakam River
Delta.
• Early Production start-up of Tambora-Tunu (CPU), Phase II.
• Continuation of Tambora-Tunu Phase II.
Completion of Tunu field Phase II Development.
• Gas production reaches 1,000 MMSCFD.
• Discovery of Mudi field, in the Tuban Block.
• Start-up of production, EOR Gas Lift, Handil.
• Kick-off of Tunu North Development Project.
• Interest taken in South Jambi B Block, South Sumatra.
• Cumulative oil production at Mahakam contract area reaches
1.0 bn bbl.
• Kick-off of Peciko Development Project.
• Liquid Hydrocarbon production reached and exceeded 1977
peak of 230,000 BOPD.
Discovery of Stupa, offshore near the Mahakam Delta.
Discovery of Bungkal, South Jambi.
• Start-up of Saliki and Sebawang PSCs, East Kalimantan.
Start-up of Tunu North gas production.
• Mahakam hydrocarbon production reaches 180,000 BOPD.
• Start-up of Peciko gas production.
• Completion of Tunu Phase VII.
Inauguration of Peciko by the Minister of Energy and Mineral
Resources, Susilo Bambang Yudhoyono.
• Inauguration of Tunu Compression Project (Tunu Phase VII and
Tunu Phase VIII), by Her Excellency President Megawati
Soekarnoputri (15 September).
• Start-up of Peciko Phase III (February).
• Daily production peaks at 624,063 BOE (15 February), including
2,908 MMSCF of gas.
• Start-up of Peciko Phase IV-MP compression (30 April).
• Completion of Tambora Phase 2 Project.
• Completion of Tunu Phase 10 Project.
• Signing of South East Mahakam Block.
• Start-up of Sisi Nubi gas production on November 20.