Earth Sciences

SAFETY MOMENT ● BP Macondo blowout

● April 20, 2010
● Last 6 months
● 4.9 million barrel spill
● 7,000 m3 of Corexit
● Clean cost + Fines  More than
60 billion USD

SAFETY FIRST !

Protection of Environment

2
 TOTAL FLUIDES EARTH SCIENCES TEAM
Head of Earth Sciences
(Marine Dispersant)
Anthony LIU

Commercial Manager Commercial Manager Technical & Marketing

(Drilling) (PAM, Mining, Fracturing) Manager
Angelique BRUNON Gregor DECKERT John ROBINSON

EDC Finasol Aqualane

EFC Crystal Elixore

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 KEY FIGURES & HIGHLIGHT

MARKET RE 2016 YTD 04-2017 BU 2017 LTP 2021 YTD vs

BU
Volumes GMVC Volumes GMVC Volumes GMVC Volumes GMVC
(kt) (M$) (kt) (M$) (kt) (M$) (kt) (M$)

Drilling 88 8.6 26 2.2 99 11.4 133 13

Fracking 10 0.5 6.3 0,7 11 0.6 13 0.9

Mining 3 0.1 5 0,4 8 0.5 17 2.0

PAM 24 1.2 10.5 1,3 28 1.5 36 2.1

Dispersant 0.1 0.2 0.03 0.1 0.1 0.1 0.4 0.7

TOTAL 125 10.6 47.8 4.7 146 14.1 199 18.7

- Market warm-up, more tender coming

- Lower activities in West Africa, Norway, UK, Asia-Pacific
- Awarded giant tender of Zadco (>18KT/year) and Grupo Mexico (>12KT/year), but …
- Secured TEP’s project in Egypt, Bulgaria, Argentina, working on Azerbaijan, UK,
Uganda, etc…
- Won Ecolab 2017 tender in Germany, Italy, Spain. Increase SNF sales in France.

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 MARKET – INDICATION OF RIG COUNTS
3 500

3 000

2 500

2 000 Middle East

Latin America
1 500 North America
Europe
1 000
Asia-Pacific

500 Africa

-
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17

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TOTAL SPECIAL FLUIDS INTERNATIONAL SEMINAR 2017 - Earth Sciences 6
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 SOME FACTS

Platform Tender
TOTAL E&P’s Current Land
Compact Rig /
Swamp Jack Up Semi Sub Semi
Drillship Total
Deep
Rig Rig Rig Anchored Sub DP water
Rig HWO
Activities
Exploration/Delineation 2 0 0 0 1 0 0 0 3 0
Development/Work-over 4 0 1 0 5 0 1 5 16 6
Total 6 0 1 0 6 0 1 5 19 6

Down from 60 rigs mid 2014 to 19 (May 2017)

● 2016, Total EDC account for 95% of

Total E&P OBM baseoil consumption
● 2016, Total E&P indirect sales account
for 30% of Total EDC sales worldwide
● From different source & IHS, Total
EDC’s market share was 14% in 2016
for clean fluids in OBM

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 MAIN PROJECTS & ACTIONS
● One Total
- Drilling / Fracking / Dispersant
Establish real & tight partnership between Total EP & Total Fluides
- Mining solution
- Focus on key affiliates, ‘fluide’ communication
● Rebuild drilling fluids strategy (supply chain / commercial)
- EDC 200 SE launching
● Drilling / PAM / Mining Key account management (Monthly review,
Salsa, Credit, Consignment stock …)
● Innovation / R&D
- WBM additive & Anaerobic-Pass product
- Elixore high-viscosity grade trial
- Biolife
● Lobbying
- US EPA / Chevron on synthetic definition, Diesel  Clean fluids
- Registration of Finasol

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1st Drilling Fluids Workshop

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 TO BE
A REAL GLOBAL FLUIDS PLAYER

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 DEVELOPING
TOGETHER
SPECIAL FLUIDS
INTERNATIONAL SEMINAR 2017
Clean Drilling Fluids Initiative - USA

The Scope of the Initiative

• United States Oil & Gas Operators and Drillers are not
restricted from using diesel based drilling fluids on
inland wells even though this practice compromises
the health/safety of employees and the environment.

• The Clean Drilling Fluid Initiative will educate drillers

about the risks associated with the use of diesel and
the benefits of using alternatives that are safe for
employees and the environement.

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Clean Drilling Fluids Initiative - USA

United States Rig Count

Bayport

Each Rig requires approximately

960 mts of fluid per year

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 Clean Drilling Fluids Initiative - USA

Everything's in
place Diesel is Up to 25% Less
Cheap

Availability
of
Alternative
Mud
Inventory

How Do We
Transition? +800kt annually of alternative?
Why Change from Diesel to an Alternative Fluid?

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 Clean Drilling Fluids Initiative - USA
Consistent Fluid Properties 30% ROP Improvement

Reduced
Litigation Drilling
Costs
Reduced Aromatic Reduced Fluid Consumption
Exposure
Reduced odor and non-carcinogenics
Reduced Reduce
Dermal Employee
Exposure Exposure Onsite
Bioremediation
Workers Prefer It

Clean Alternatives are the Best Choice

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Clean Drilling Fluids Initiative - USA

The Next Step

•Select Drillers for Field Trial to compare EDC to Diesel

•Acquire and Assemble the Data
•Present the findings
MUD Companies
Drillers
Oil & Gas Operators
SPE
•Set-Up Transition Program With MUD Formulators
•Set-Up Transloading
•Bring on Additional Capacity

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Clean Drilling Fluids Initiative - USA

Thank You!

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