Chief Executive of Elf Petroleum Nigeria Limited (EPNL) upstream subsidiary of Total, Mr. Jacques Marraud des Grottes has stated that the company is on course in its determination to meets its objectives for 2006. In his mid-year appraisal of the company's performance, made available to Staff, he stated that "for the first 6 months, we reached our objectives for operated liquid production with good oil production level on Ofon and Amenam . the good work performed to clear the technical issues which followed the Obite de-bottlenecking will allow the export of 9.5Msm3/day production to NLNG at Bonny."

He also stated that the company's safety record remains good. Given the priority the company attaches to issues relating to safety, this is significant in realizing its overall objectives.

According to the chief executive, the creation of the Local Content Division in the company is to ensure compliance with governments objectives on local content on all projects embarked upon by the company.

Mr. Marraud des Grottes had, at the beginning of the year, identified the Ofon Phase2 Project as key to the company's planned zero flaring objective and for sustaining its mid term joint venture oil production. The Ofon Phase 2 Project, he stated, is progressing according to schedule.

Approval for the OML58 upgrade has also been given by NAPIMS, the investment management arm of the NNPC.

He informed that the company is also making progress on its Obite Independent Power Project, which is designed to add 400MW to the national grid on completion. There has been call for tenders for the transmission line and the contract for the power plant. Also, negotiations are ongoing with PHCN and NAPIMS to finalize the contractual framework to allow FID at the end of this year.

For its deep offshore project, Akpo field, construction of the various components of the field is progressing at a satisfactory rate in various yards in Nigeria, Korea and Europe. Two drilling rigs are due to start drilling in August. The importance on this field has necessitated the secondment of 60 Nigerian Staff to the project in 2006, 45 of whom are abroad.

The Eastern Deepwater Asset has started the tender process for the development of the Usan field. Exploration activities have been pursued with the drilling of two wells. Activities in the Amenam Kpono field also stepped up with the loading on July 20 th of the AMP2 platform, with a sail away from Malaysia to Nigeria planned for mid-August and estimated arrival in Nigeria in early October.

Mr. Marraud des Grottes also informed Staff that the exploration team is preparing massive seismic acquisition in deep water and traditional offshore, with a probable campaign start date of early 2007. The company is also consolidating through acreages outside its present assets - farm-in 40% in OPL 215 with Noreast as concessionaire and farm-in 40% in OML 112 and 117 with AMNI.