Total announces that Total Gabon and Gabon have signed an agreement to renew for 25 years the convention of establishment, which expired on June 30, 2007. The convention of establishment defines, among other things, the legal and tax system governing Total Gabonís concessions, operating licenses and crude transportation installations. It covers 17 concessions and operating licenses representing an area of nearly 1,500 square kilometres and more than 60% of Totalís share of output in Gabon (more than 50,000 barrels per day in 2006).
The system was thoroughly updated to promote exploration and development of oil and gas resources and to support oil and gas production in Gabon. Total is therefore considering additional development of the Anguille field, wholly owned by Total Gabon, which came on stream in 1966. A final investment decision could be made at the end of 2007. This project would add more than 100 million barrels of proved and probable reserves and 30,000 barrels of oil per day in first half of next decade.
The renewal of the convention of establishment between Total and Gabon demonstrates their renewed trust in developing the countryís natural resources.