Their News [Archives:2008/1200/Local News]

October 20 2008

– Total farms into Block 70 with KNOC

TOTAL announces the signature of an agreement with Korea National Oil Corporation (KNOC) to farm into onshore exploration block 70 (Attaq Area, Shabwa Governorate) in Yemen with an interest of 30.875%. This agreement has been approved by the Yemeni Ministry of Oil and Minerals.

Block 70, which covers an area of 1,367 square kilometres, is located in the south-eastern part of Central Yemen's Marib Basin. Following the farm-in, Total has a 30.875% interest in the block, alongside KNOC (30.875%, operator), Samsung Corporation (19%), Daesung Industrial Co. Ltd. (14.25%) and Yemen General Corporation for Oil and Gas (5%). A 2D seismic has been acquired in 2007 and a well is being drilled.

Mr. Martin Deffontaines, the General Manager of Total E&P Yemen, stated 'I would like to thank the Ministry of Oil and Minerals for approving this agreement with KNOC. The agreement is an indication of TOTAL's extensive expertise in the oil industry and of the trust TOTAL has built with both the Yemeni Government and the foreign investors in the oil sector in Yemen. This is a great achievement and I hope that our exploration efforts will substantially contribute to the Yemen's future oil production.'

Already Yemen's leading foreign investor, with this acquisition Total will increase its portfolio of exploration acreage in the country, beyond its recently acquired interests in Blocks 69 and 71, and will bring its technical expertise to the Block 70 consortium.

Total in Yemen:

Present in Yemen for more than 20 years, Total is the operator of Block 10, East Shabwa and holds several other participations in oil exploration and production blocks. Since 1997 the Group has been producing from Block 10 and celebrated the milestone of 100 million barrels of production earlier this year.

Total is also the leader of the Yemen LNG project with a 39.6% interest. Two liquefaction trains with a combined capacity of 6.9 million metric tons per year are under construction and will be supplied with natural gas from developed fields in the Marib region of Central Yemen.

– PM launches Felix Airways 1st flight to Aden

Prime Minister Ali Mujawar launched Saturday the low-cost domestic carrier Felix Airways' first flight from Sana'a to Aden.

The Premier expressed, in a press conference held in Aden after landing the plane, his satisfaction of launching the Felix Airways, noting that this company would open wide horizons assisting flowing of investments and facilitate the investors and citizens' transportation among governorates.

The Felix Airways is a fruit of Conference on Exploring Investment Opportunities, Mujawar said, voicing hid appreciation to the Saudi investors, who have 75 per cent of the company's capital.

In return, the chairman of the company's board of directors Saleh al-Awaji expressed his thanks to government's direct support for this project.

He highlighted that good investment environment in the country that needs media propaganda. “Press has to play its key role in encouraging investments””