AFFORDABLE, RELIABLE AND CLEAN ENERGY

HOW WE DO BUSINESS IN THE UK 2016/17 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 AFFORDABLE, RELIABLE AND CLEAN ENERGY

TOTAL IS THE WORLD’S FOURTH LARGEST INTERNATIONAL OIL AND GAS COMPANY, BACKED BY NEARLY A CENTURY OF HISTORY AND WITH OPERATIONS IN MORE THAN 130 COUNTRIES.

Engaged in every sector of the oil and gas industry, renewable energies and power generation sectors, our ambition is to become the responsible energy major. To accomplish this, we are leveraging our integrated business model to capture synergies between the different activities of the Group, using our operational excellence, technological expertise and capacity to manage complex projects.

Our ambition: to become the responsible energy major The next 20 years poses three major energy challenges: fulfilling the energy requirements of a growing world AFFORDABLE, population, tackling climate issues and RELIABLE AND anticipating changing customer needs and expectations. We believe we have CLEAN ENERGY a responsibility to provide tangible solutions. That means first of all providing affordable, reliable and clean energy. That’s why we’re developing a production mix that takes into account the International Energy Agency’s 2°C scenario and monitoring the energy efficiency of our facilities. We are determined to find innovative solutions for the new ways our customers use energy and to help them to do so more responsibly. HOW WE DO BUSINESS IN THE UK 2016/17 That’s what it means to be “Committed to Better Energy.” Cover: Our number one strength is our people. Strong, confident teams working together to drive progress. Situated in North Lincolnshire, Lindsey has been operational and part of the local community since 1968. ©Total/Michel Labelle TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 01 CONTENTS

INTRODUCTION OUR BUSINESS IN THE UK AFFORDABLE ENERGY

PAGE 02 PAGE 06 RELIABLE ENERGY

PAGE 08 CLEAN ENERGY

PAGE 12

CONTACTS

PAGE 20 PAGE 16 02 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 INTRODUCTION FROM ELISABETH PROUST AND MICHAEL BORRELL

WITH A CONSTANT FOCUS ON SAFETY, BY CAREFULLY MANAGING COSTS, DELIVERY AND SOLUTIONS TO CLIMATE CHANGE, WE WILL MEET OUR AMBITION TO BECOME THE RESPONSIBLE ENERGY MAJOR.

Below: Michael Borrell, Chairman of Total Holdings UK and Elisabeth Proust, UK Country Representative

Above: The Elgin Franklin fields: using high pressure/high temperature technology to recover oil and gas from the UK’s deepest producing reservoirs.

Below: Every year, Total publishes a report showing how climate is being integrated into its business strategy. www.total.com TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 03

Context and Strategy By improving energy efficiency, reducing We operate in a complex economic the carbon intensity of our production international environment marked mix and accelerating the development by continued price volatility and that of renewable energies, our ambition is to volatility is not likely to decrease. We position Total as a global leader in these need to concentrate on what we can do three priority areas and drive progress. and do it well – manage the challenges We have evolved our organisation to by implementing a sustainable capital achieve the 20 year ambition. A new expenditure policy, remain competitive, Gas, Renewables and Power division maintain a high level of operational will spearhead our ambitions in the excellence and, first and foremost, be growth of renewable energies and a exemplary in the area of safety. Safety Strategy-Innovation division, under the is a prerequisite. We believe the best leadership of an Executive Committee run operations are also the safest, so board member, to ensure our strategy by improving safety, we consequently incorporates climate issues. Our portfolio improve efficiency. Today safety is more is moving more to gas, an abundant than a priority; it is a core value, the energy source, to assist the transition to cornerstone of success and sustainability lower carbon forms of energy. When it in our business. comes to generating power, gas is the best Operating costs have come down from fit for renewables since it can offset their US$10 per barrel to under US$6 per intermittency thanks to its flexibility. barrel in the period 2014 to 2016. This Acquisitions in 2016 of SAFT, a leading is reflected in our results, where Total’s provider of energy storage solutions, and strategy to lower the break-even point Lampiris, reflects our strategic expansion and increase cash flow is proving in gas and power marketing activities. successful. Our integrated business Our achievements in ensuring the model, along the full value chain of oil success of projects and our ability to and gas, stretching from exploration and manage complex developments, means production to the distribution of products we are consolidating our position as one to the end customer, through refining, £7.1BN of the world’s leading energy majors. Turnover in 2016 petrochemicals and trading, has been We have been able to start capitalising pivotal in our ability to successfully on that position by engaging in new address the challenges we are facing. opportunities around the world: such At the same time, we want to contribute as liquefied natural gas and Barnett shale £561M to the solutions that are needed for the in the US since 2016, increasing our Capital investment in the UK future of energy and, in particular, presence in Uganda, Middle East, Iran, decarbonising energy. Fulfilling the Korea, Algeria, a major project in Brazil energy requirements of a growing world with Petrobas, and expanding our population, while addressing climate marketing and services business in East 14.5% issues and adapting to changing Africa. In August 2017, Total acquired of all gas extracted from customer behaviours and expectations, 100% share of E&P company Maersk Oil & British waters is by Total are three challenges that Total must meet Gas A/S, deepening and accelerating our over the coming years. strategy for value creation and delivering significant synergies. Our strategy is to become the responsible 12.2% energy major, providing affordable, We continue to focus on core activities Total Group shares held in the UK reliable and clean energy. With a constant to deliver strong results. We have focus on safety, by carefully managing made efforts to bring costs down and costs, delivery and solutions to climate restructure the business to deliver change, we will meet this ambition. our objectives and manage cash. Our strategy, under the 20 year ambition, will 2,536 This strategy, consistent with meeting People are directly employed in the UK ensure the business is resilient to external the International Energy Agency’s 2°C pressures, responsive to customer needs scenario, will provide safe, affordable and responsibly delivers energy across energy solutions to as many people the markets in which we operate. as possible whilst managing energy consumption and the related emissions. 04 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 INTRODUCTION CONTINUED

Below: Developing technologies for the future and digitalisation are a key part of our strategy.

WE ARE THE UK’S LEADING ENERGY MAJOR AND CONTINUE TO GROW OUR MARKET SHARE.

How Total is responding in the UK Since then we have also completed the Total has over five decades of doing Edradour-Glenlivet project. These two business and has invested more than satellite wells have been developed under £5 billion in the last five years. We are budget and ahead of schedule. actively working on implementing the We have completed the restructuring 20-year ambition across UK operations. of the Total Lindsey Oil Refinery in Naturally, the return of oil price volatility North East Lincolnshire. The Refinery’s has put the entire UK energy industry production capacity and organisation IN THE UK, TOTAL under pressure. With the North Sea basin has been streamlined to become a now very mature, prospects are smaller smaller but higher converting and HAS OVER FIVE and more difficult to develop. Therefore profitable refinery. The organisation’s margins are tight and exploration restructure has been achieved without DECADES OF costly. As part of our restructuring, compulsory redundancies and through we have divested our UK mid-stream redeployments that have created new DOING BUSINESS gas transportation assets in order to opportunities for employees. The AND HAS reduce our invested capital. adaptation has enabled us to improve our efficiency and enhance competitiveness Nevertheless, we remain committed by reducing costs and cash breakeven. INVESTED MORE to the North Sea as part of our global strategic position. Our focus is, therefore, Developing technologies for the future THAN £5 BILLION on ensuring lower costs, better safety and and digitalisation are a key part of our stable production from our UK assets. strategy and we continue important IN THE LAST work with universities across the UK and In Shetland, we brought the Laggan- new R&D-focused bodies, such as the Tormore fields on-stream early last year FIVE YEARS. Oil & Gas Technology Centre. and quickly ramped up production. TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 05

We want to expand our energy efficient The opportunities in the UK, as well as its offerings, with a range of Fuel Economy influential position in the global energy lubricants and by increasing the blend market, means that this country is, and of biofuels in our fuel by 7%. We are continues to be, a major market. We exploring opportunities for renewable are the UK’s leading energy major and energy with SunPower at two UK sites, continue to grow our market share. and we want to increase the number of We are a leading producer on the United renewable producers we buy from, adding Kingdom Continental Shelf. 68% of our an additional 100 sites. This will increase production in 2016 was gas, of which the volume we purchase from 2TWh 95% goes into the National Grid. Above: 2016, currently to 3.5TWh by the end of 2018. acquisition of Saft, The UK oil and gas industry is mature By pursuing these types of projects we part of our ambition and stable and is an important region to complement aim to be the supplier of choice in the for us. A number of our key functions our portfolio with UK and globally. electricity storage globally have operational hubs in the solutions, a key Opportunities in the UK are promising UK, including trading, distribution, component of the because of innovation in the energy and marketing. future growth of industry, and we are committed to being renewable energy. Safety as a core value; respect for others; a part of that journey. The energy business pioneering spirit; stand together; and is evolving and Total is evolving with it. performance minded are our new Group values, aligned with what is already Who we are in the UK expressed in our Code of Conduct and Total in the UK is fully integrated in Ethics Policy. Identified through a all sectors of the energy business from collaborative process with our workforce, exploration, production, refining, these values unite us, provide clarity in trading and marketing to end users who we are and what we do and give and customers. greater commitment and motivation We do this across four business units: to our staff. Exploration and Production; Gas, Below: We want to Renewables and Power, which includes expand our energy our energy trading division; Refining and efficient offering and have developed a range Chemicals and Marketing and Services. of Fuel Economy lubricants and bitumen products which are supplied at lower working temperatures. 06 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 AFFORDABLE, RELIABLE AND CLEAN: OUR BUSINESSES IN THE UK

OUR FOCUS ON DELIVERING Elisabeth Proust Managing Director, AFFORDABLE, RELIABLE AND Total E&P Limited CLEAN ENERGY RUNS THROUGHOUT OUR FOUR UK BUSINESS DIVISIONS. HERE WE OUTLINE BUSINESS HIGHLIGHTS FOR 2016/17. EXPLORATION AND PRODUCTION 158,000 Boe/d (Total Group Share) produced in 2016

West of Shetland 8% We are developing the of the UK’s gas needs supplied potential of this frontier region by bringing by Total in the UK on‑stream new gas fields to supply UK homes and businesses. In order to be affordable, we have to work more closely with our supply chain to keep costs low and efficiency high. We have reduced our operating costs by 30% since 2014 and are operating at 90% production efficiency. We have done this Lindsey Oil Refinery by using our skills more effectively and In order to produce more by reducing service costs through more cleanly, we have reduced SO 2 efficient production. We have managed emissions, and improved the operational excellence of the to make all these changes and savings Refinery to reduce downtime without any compulsory redundancies. and increase efficiency. This is at the same time as bringing production from Laggan-Tormore online Saft early last year. We have extended the life Our wholly-owned subsidiary of our northern North Sea fields by two specialises in advanced- to five years by improving efficiency and technology battery solutions for industry, in space, at sea, reducing costs. Production from our in the air and on land. Alwyn North platform has now exceeded two billion barrels of oil. We have improved our production by increasing our efficiency. With fewer unplanned stops, less flaring – which Total Concept TP Total aims to phase out globally by We develop multi-purpose oils (such as Total Concept TP Star) 2030 – and greater efficiency in our so the client can more easily North Sea operations we can provide manage on-site fluids for more reliable production. greater efficiency and safety. In 2016, we continued our relentless focus on safety with both staff and our contractors. Some of the things that we have undertaken as part of this initiative Pioneers in LNG trading include: ‘safety moments’ at the Total’s energy trading beginning of each formal meeting, ‘stop function is strategically cards’ where everyone has the authority hubbed in London to to stop a piece of work if they think it is maximise opportunities to match energy supply unsafe; and our 12 Golden Rules, which and demand both in the have been simplified and clarified. UK and globally. TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 07

Laurent Vivier Jacques Beuckelaers John Wilson Senior Vice President, General Manager, Managing Director, Gas Total Lindsey Total UK Limited Oil Refinery

GAS, RENEWABLES REFINING MARKETING AND POWER AND CHEMICALS AND SERVICES 175,000+ £33mn 18 Industrial and commercial Investment to adapt the UK Refinery Total Ecosolution products on offer to customers in the UK for the future reduce greenhouse gas emissions 7% 2 6mn Increased capacity flows in 2016 Hutchinson speciality chemical Capital investment in 2016 into South Hook LNG Terminal affiliates in the UK

Going further downstream in the gas We have had a successful year at Our proximity to customers is key as we value chain, Total is the second largest our Lindsey Oil Refinery in North continue to help deliver our integrated gas supplier by volume to Industrial and Lincolnshire, realising our commitments solutions to a range of UK customers. Commercial operators in the UK with and hitting key milestones. We work daily with clients to understand 19.6% market share. Our expansion has Safety is always in the forefront of our their evolving needs and co-create continued and is going well. We now minds. The Refinery achieved one year solutions to improve their efficiency. This complement those gas sales with without injury and we continue to focus is the benefit of our integrated approach. electricity and have 72,509 electricity on safety as a core value for us all. We and 103,480 gas sites. We now have a bitumen import facility want our employees to go home safely on the Thames, so we have been able to This year we have become an energy after their day’s work. expand our distribution in the south of purchaser, to enhance our position as We have successfully completed England. This also means we need fewer an energy provider. We have found it a complex restructuring programme. trucks delivering along UK motorways. prudent to purchase electricity from other This was achieved without any providers – notably renewable providers. We also develop multi-purpose oils compulsory redundancies and enabled We currently purchase from more than (such as Total Concept TP Star) so the us, through significant investment in 300 small renewable providers and, in this client can more easily manage on-site training, to both upskill employees and way, we support the development of the fluids for greater efficiency and safety. facilitate redeployment to other parts market and help to provide financial Additionally, the unique properties of of the business. security to smaller renewable energy these products enables lower fuel suppliers, supporting the delivery of We achieved a successful turnaround consumption, meaning greater energy reliable and clean energy. and inspection, which was realised safely, efficiency, making them a valuable on budget and on time. contributor to our ‘clean’ ambition. Our activities bring reliable and affordable gas and electricity down to the end-user. Our speciality chemical affiliates, We continue to be a high value supplier, Stop‑choc and Pamargan, offer bespoke focusing on how our products and Total is also a partner in the South Hook solutions to their customers. Pamargan services can deliver cost and fuel LNG terminal. This impact capacity manufactures and markets bonded seals, efficiencies over the lifetime of equipment. complements our domestic gas working closely with its major customers, We have also implemented a cost agility production, allowing the UK to benefit giving input and assistance at the programme over the last two years to help from the increasing global gas market. development stage and when problems us continue to deliver efficiencies we can These efforts to develop an array of arise. Stop-choc produces vibration and pass on to our customers. services to our customers are further shock isolators, aircraft cockpit displays, exemplified by the acquisition of SAFT, designed according to customer needs a leader in battery storage. across a range of big industry sectors including airline operators, the automotive industry and big ship building contracts. Stop-choc is working closely with Rolls- Royce on researching and developing next stage generation of large aircraft engines. 08 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17

AFFORDABLE ENERGY TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 09 AS WE LOOK TO EXPAND ACCESS TO ENERGY WE ARE FOCUSED ON PROVIDING AFFORDABLE ENERGY BOTH GLOBALLY AND IN THE UK.

To help our customers we are investing GAS, RENEWABLES in and developing new technologies AND POWER which are not only more affordable, but also more cost effective to produce. We We are a shareholder in the South Hook aim to promote responsible energy use LNG Terminal in Wales and have in our operations and by our customers. increased flows into the UK by more than 7% in the past year. EXPLORATION Our global trading division is bringing AND PRODUCTION LNG cargoes into the UK to complement In order for us to be able to provide North Sea production, enabling the affordable energy we need lower costs UK to benefit from the downward cost and higher efficiency at all steps in our pressure on gas due to the increase in production process. Since 2014 we have global production. seen a 30% reduction in operating costs. These benefits are passed to our These cost efficiencies have been filtered customers. By streamlining our down through our energy value chain. operations and becoming more efficient Digitisation and agile logistics are also in how we work, we can also keep our helping us to maintain our stock and costs lower for our customers. equipment at efficient levels across our sites. We are increasingly using cutting SPOTLIGHT edge technology to improve our operational performance. The ultimate Over the next three years gas production goal is for our exploration activities to be globally is expected to grow resulting more cost-effective. We have sought to in increased flows to Europe. The benefit engage our staff in these cost reduction of our integrated approach will allow campaigns. Involving our staff has lead us to absorb new gas supply through to greater acceptance and enthusiasm our existing infrastructure and LNG for transforming our business, as well as transportation networks, including discovering many more innovative ways here in the UK. In doing so, we are to reduce waste and create new value. adding certainty in supply, reliability To sustain this success and maintain and affordability. efficiency, we have recently reviewed the cost of our operations again and REFINING will shortly launch the next phase of our AND CHEMICALS cost reduction programme called ‘3C’ – Consolidate Cost Culture. With the completion of the first phase of our major restructuring plan, Future in Total, in 2016, we have significantly SPOTLIGHT improved the competitive position of This year we are hosting two pilots Lindsey Oil Refinery within the UK and of robotic technology to undertake rig Europe, to ensure the long-term survival inspections in Shetland – helping lead of the site. We invested heavily in training technological evolution in the industry. to redeploy employees and achieved zero We are targeting a 50% reduction in compulsory redundancies. Over 30,000 the costs of inspection through hours of training were delivered in 2016 this programme. for the restructuring project. We believe the Refinery is now more efficient, ready to meet the demands of the inland market and our customers and is well positioned to compete globally. 10 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17

Right: Between 1000 AFFORDABLE and 1500 families depend on the Refinery, whether ENERGY as direct employees CONTINUED or as suppliers.

WE BELIEVE THE BEST RUN OPERATIONS ARE ALSO THE SAFEST AND STRONG LEADERSHIP AT ALL LEVELS IS CRITICAL

Indeed, our Refining and Chemicals SPOTLIGHT division declared 2017 the ‘Year of the Customer’; to focus on our customers’ In a shrinking market it was essential to needs and listen to their feedback. invest in superior products and with fuel Listening to our customers is very oil usage continuing to drop, we needed important to us and we encourage visits to significantly reduce its production, to the Refinery so we can show them what while increasing other products. To we do and how we value their business. reduce crude capacity to 110,000 barrels per day, the crude distillation unit (CDU1) The achievements at the Refinery and the stage 1 units were stopped have also been recognised this year. on 22 September 2016. Meanwhile It received three awards from the the number 2 crude distillation unit Total Group, recognising operational underwent a major inspection and BY BECOMING excellence, innovation and teamwork. turnaround which included a project The Operational Excellence Award to improve the furnace at the heart MORE EFFICIENT was given for the best progress in the of the unit. This streamlined our availability of the units over the last IN HOW WE WORK operations, delivering full capacity four years, while the other two awards and efficient production. WE CAN ALSO recognised the hard work involved in the furnace re-vamp project and innovation KEEP OUR COSTS on new projects. LOWER FOR OUR CUSTOMERS. TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 11

for injection at point of use (which can COMMUNITY MARKETING AND SERVICES save up to 3% on fuel bills). For a large In 2017, Total signed a five year customer with a fleet of vehicles, these Partnership Agreement with We have had a downstream cost agility products, combined with fuel economy Heriot‑Watt University’s Institute programme in place for a number of years lubricants, can provide substantial savings of Engineering. and we are constantly reviewing our over the course of a year. processes to keep them lean and our The agreement covers global research products affordable. Total takes a ‘Cost of Proximity to our customers is key. We and development and educational Ownership’ approach to our products and have integrated our bitumen offering and activities undertaken jointly by Total services. These products, including our other products into our Total energy mix and Heriot-Watt, including sponsored lubricants and bitumen range of solutions, and now have a bitumen supply depot for PhD and post-doctoral studies, guest help reduce cost over the life of a piece of our exclusive use on the Thames, fixing lectures and presentations, internships equipment – enabling our customers to our position as the national supplier and scholarships, seminars and save on maintenance costs. We offer TIG 6 of bitumen. training events, career, business and maintenance management software to We are also offering our customers tools education forums and conference and better manage maintenance of industrial to enable them to be more efficient, such university and industry-based site equipment in a cost efficient manner. as digital fixed-price ordering tools and visits. This partnership marks Total’s We produce products which are multi-use, lubricants ‘push’ logistics solutions. ongoing commitment to Heriot-Watt’s such as oil for the gear box and the engine R&D activities which are underpinning of earth-moving equipment. This Across our divisions, we want to engage the future success of the offshore oil improves safety, because there is less further with our customers showcasing and gas industry. likelihood of product mix-up and reduces the full scope of our activities and how the number of products that need to be much more we can offer them. stored on site (such as TP Star). This also increases efficiency and adds value for our customers. We also sell Excellium additives 12 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17

RELIABLE ENERGY TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 13 SAFETY IS MORE THAN A PRIORITY; IT IS A CORE VALUE, THE CORNERSTONE OF SUCCESS AND SUSTAINABILITY IN OUR BUSINESS.

We believe the best run operations are GAS, RENEWABLES also the safest and strong leadership at all AND POWER levels is critical. This embeds reliability at the heart of what we do. We must also The size of our fully integrated activity ensure that we meet our customers’ provides reliability of gas flows to the end energy demands. user. Testament to this, the UK is a reference on many contracts for natural gas. Over Reliability of energy supply is dependent 200 people in our global trading activity on the flexibility of our production and based in London ensure energy goes to supply of energy to meet fluctuations in where our customers need it both in the demand in the short term, and evolving UK and overseas. energy needs in the long term. The benefit of our integrated business We continue to expand our profitable approach is that it enables greater marketing business, including here in the flexibility helping us move towards UK where we have held a leading position a diverse, lower-carbon energy mix. in B2B business selling for the past 15 years. We focus on the particular energy requirements of our customers and have EXPLORATION developed the specific skills and experience AND PRODUCTION to offer them a superior service, competitive Our teams, lead by highly-experienced prices and a set of innovative products. supervisors, are using their skills more Our range of products offer a choice to our effectively to ensure our operations are as customers to meet their needs at every level, safe and, therefore, as reliable as possible. from 1-60 month contracts, including a Our ambition in the coming years is to 100% eco-energy product from entirely reduce, by a factor of three, the number of renewable sources. safety incidents, moving us to a position where we are one of the top safety REFINING performers worldwide. AND CHEMICALS In 2016, 68% of our UK production was Lindsey Oil Refinery is committed to gas The integration of our business in the UK and focused on maintaining the UK and globally means that we have operational excellence. Our continuing built in the flexibility to be able to import improvements in health and safety gas from other markets to balance contribute towards our reliability – safety UK supply, where needed. We will now is the cornerstone of our operational focus our exploration well programme excellence. Our goal is to continue safe on gas prospects, especially in the operations. By minimising downtime West of Shetland region, to ensure we improve the reliability of our products. continued production. We differentiate ourselves by the quality of service we provide throughout the SPOTLIGHT entire supply chain. We are in permanent Within months of starting up, the control of the quality of our feedstocks, Shetland Gas Plant was operating at components and blending operations. 99% efficiency. Operational efficiency This gives us the ability to ensure has remained high as production has consistent good quality and allows us matured. The platform continues to the flexibility to respond quickly and supply lower carbon energy to the UK. efficiently to changing market needs. In 2016, we undertook a major intervention in one of our units and our supply of finished products continued unaffected. 14 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 RELIABLE ENERGY CONTINUED

Our units have to be up and running to ensure a continuous supply to our COMMUNITY customers. In 2019/20 we will see In Preston in Lancashire, and continuing investment for our Future Ferrybridge in Yorkshire, we have in Total (FIT) programme with a further met with local schools and politicians £15 million on two key units, enabling us to build stronger relations with the to increase the amount of sulphur-free local community. In Ferrybridge products and gasoline we produce. This on World Day for Safety we showed will enhance the Refinery’s flexibility in schoolchildren how to be aware of the management of its feedstock buying, the dangers of HGVs and industrial where it will not only be working with traffic. At our sites, we are now using North Sea groups but capable of taking our SRM+ stakeholder relationship in crude oil from other regions. management tool, to get a greater understanding of our locality. SPOTLIGHT We allocated £33 million to adapt the Refinery for the future, under our FIT programme. In 2019/20, remaining We approach reliability with the aim to be investment will be spent on two key considered dependable by our customers units to produce sulphur-free products so that they continue their relationship and gasoline. with us. Our stakeholders and suppliers also need to have confidence in our delivery. MARKETING AND SERVICES We are fostering a partnership approach with all our clients, working together to The strength of our relationships develop solutions. Our relationship with with customers and our integrated our customers – large and small – plays business model ensures that we can take a fundamental role in our success and is opportunities along the whole of the value something we continually review. With chain. The collaborative approach taken a dedicated sales force, we pride ourselves across our UK subsidiaries allows us on understanding and anticipating flexibility to provide new forms of energy customer needs. We are also committed to distribution and innovative services. building strong partnerships, such as those Working closely together enables us to with Tarmac, PSA and Renault-Nissan. showcase to our customers the full scope of our products and services, offering solutions in the areas of energy efficiency Below: We have developed and cost savings. An example is our apprentice schemes with integrated approach to selling low- regional training centres, including a 10-year temperature asphalts along with our relationship with the IT IS IMPORTANT logistics solution, which makes sure our Catch Centre for process, customers’ trucks are where they need engineering and renewable them to be at the right time. skills where we currently FOR US TO BE have 16 apprentices PART OF THE undergoing training. COMMUNITY IN WHICH WE OPERATE AND FOR US TO UNDERSTAND THE COMMUNITIES SURROUNDING OUR SITES. TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 15

Left: Over 23,500 young people across the UK participated in our national education programme in 2016/17.

SPOTLIGHT Total Ecosolutions is a flagship programme to promote smarter, more energy efficient consumption. Total Ecosolutions offer our customers innovative solutions that perform above market environmental expectations. Azalt ECO² and Total Styrelf ECO² bitumen have been awarded the Total Ecosolutions label as thirty percent less energy is consumed during manufacturing meaning asphalt installation temperature and therefore emissions are subsequently reduced. We have built up a strong collaborative partnership with Tarmac to develop their Ultimate range of asphalts which can incorporate these specialist binders. Tarmac has developed a portfolio of warm mix asphalts which are supplied at temperatures typically 40°C lower than conventional mixes. Reduced temperatures during paving operations cause less disruption to the travelling public as road works can be completed in less time. Azalt ECO² and Total Styrelf ECO² binders can provide all our customers with the sustainable approach to construction they expect, whilst reducing energy

consumption, VOC and CO2 emissions. The performance of the finished product ensures sustainability through durability.

Lost Time Injury Rate (LTIR) UK

2016 067 201 06 201 076

UK

Total Recordable Injury Rate UK

2016 1 201 11 201 02

TI T 16 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17

CLEAN ENERGY TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 17 TACKLING CLIMATE ISSUES IS AN INTEGRAL PART OF OUR CORPORATE STRATEGIC VISION.

Tackling climate issues is an integral SPOTLIGHT part of our corporate strategic vision and is consistent with the IEA’s scenario Total’s Shetland Gas Plant was built on of preventing global temperatures an area of peat land which supports a very from rising more than 2°C. We have fragile ecosystem and is home of many a responsibility to provide safe and of Shetland’s indigenous bird species. affordable energy to as many people Ensuring that the water from the plant as possible, while managing energy does not harm the environment was consumption and the related emissions. critical to the plant’s design. Our approach involved mapping all EXPLORATION possible ways in which water gathers AND PRODUCTION and runs off from the site of the plant to We believe in gas as a transition energy the surrounding water courses. We also to a lower-carbon energy mix. We have installed very sensitive monitoring brought new capacity online with our equipment to accurately measure and Laggan-Tormore start up, which began record what is happening across the site. production in February 2016. The plant Allied with frequent inspections both has a daily production capacity of internally and by third parties, we are open 500 million cubic meters. Following to challenge in order to maintain a rigorous processing at the plant, the gas is sent standard of environmental protection. to the British mainland via the Shetland This careful design and construction Island Regional Gas Export System criteria together with a regime that goes pipeline, while the condensates are beyond the basic regulatory requirements exported via the . gives the best assurance possible that our The fields are expected to produce 90,000 activities do not harm this very special barrels of oil equivalent a day, boosting part of the world. the United Kingdom’s production capacity helping the transition to a lower-carbon energy mix. We have installed LLP gas GAS, RENEWABLES recompression facilities at the Shetland AND POWER Gas Plant. This is in line with best In the UK, we address the challenge of practice and will allow us to capture climate change by committing to provide emissions at low temperature and lower carbon forms of energy, while also improve heat recovery. encouraging a buoyant market. Gas is the cleanest fossil fuel widely available, and We are improving energy efficiency, we want to ensure the wide availability with facilities at 90% production of its supply. efficiency through reducing the number of stoppages alongside a reduction in The UK is at the forefront of the switch

flaring. Methane emissions account from coal to gas – essential for CO2 for less than 0.5% of Total’s marketed emission reduction as gas emits half the operated production. We are working carbon emissions of coal. The UK produces to eliminate routine flaring by 2030. a substantial share of natural gas for domestic use. Infrastructure in the UK is in place to distribute more gas, but it is underused – we want to increase its use and capacity. We are putting more effort into understanding each stage of the value chain in order to realise opportunities: how much we refine and sell to customers, how much gas is entering the national grid, so we can expand our offering to customers, and support a gas market at scale. 18 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 CLEAN ENERGY CONTINUED

We have signed an agreement with two SPOTLIGHT ferry companies to implement liquefied natural gas bunkering at major ports We are supporting and encouraging our between France and the UK from 2019, customers to become more aware of their an innovative supply chain solution energy usage and have installed 83,000 using mobile storage tanks. We remain automated meter readers in the UK. committed to providing clean energy and will continue to invest and innovate both REFINING on land and at sea. AND CHEMICALS We also support developers of renewable We are ensuring our processes are as energy to guarantee that the electricity environmentally friendly as possible they produce will be brought to market. and developing greener solvents and We purchase from more than 300 more sustainable solutions. We are in renewable power producers in the UK a transformation period, moving from providing a stable market for their output. crude oil, raw materials to end product. Our purchasing capacity from renewable We have reduced SO2 emissions from distributors is set to increase from the Refinery in the UK, and improved 1.5 TWH to 3.5 TWH by the end of 2018. productivity to reduce downtime and As part of our 20-year ambition, we are increase efficiency. committed to expanding in renewables. Planning is underway for two projects We are actively involved in solar in 2019/20: two of the main units will be photovoltaics, in particular through changed with the hydrodesulphurisation WE PROVIDE our majority interest in SunPower whose unit and the solar panels are among the most reliable unit will be adapted to make cleaner, SOLUTIONS and efficient in the world. As renewables lighter fuels. become larger suppliers of energy, then THAT ENCOURAGE the requirement for back-up energy Our units are now configured to make and, hence, storage becomes ever more superior products with less impurities, RESPONSIBLE important. Brought into the Total group including sulphur. We have increased of companies in 2016, Saft is the world’s our provision of sulphur-free products, ENERGY USE BY leading designer and manufacturer used in road vehicles to increase motor of advanced-technology batteries efficiency and reduce CO2 emissions. OUR CUSTOMERS. which provides greater capacity for energy storage. TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 19

Left: At the Shetland Gas Plant, approximately 70% of the waste heat is recovered for use.

WE ARE OPERATING AT 90% PRODUCTION EFFICIENCY

have less waiting time. In solvents, we SPOTLIGHT CO2 emissions want purity and low aromatic solvents (tonnes) We have seen a reduction, by half, in SO – for more environmentally friendly fuels 2 2016 2,485,857* emissions from 2016 compared with 2012. including aviation fuel. 2015 2,311,297 Total Special Fluids, our major producer 2014 2,329,416 MARKETING for industry, has designed a unique AND SERVICES range of base oils derived from biomass, Greenhouse gas intensity combining outstanding performance As a producer of biofuels since the O2 / 1990s, we are committed to developing with unparalleled environmental sustainable products through our properties. We have moved to the cutting T E UK industrial units, partnerships and R&D edge of innovation for safer solvents and 2016 162 a more environmentally-friendly outcome. programmes. We are proud of our Biolife 201 200 range of Special Fluids, a collection of We are also developing solar energy 201 26 products obtained from 100% RSPO products with some of our key clients – certified renewable vegetable origin this is a long-term vision. Produced water feedstocks. We ensure that the palm oil we use in our products is from sustainable T E UK sources. The range provides solutions SPOTLIGHT 2016 67 for many industries, ranging from inks Our BioLife products have demonstrated and lubricants to cosmetic emollients an 83%, 92% and 93% reduction in primary 201 2 and home care products. We believe it energy consumption compared to diesel, 201 0 gives our customers an opportunity to CTL and GTL respectively, a CO2 credit significantly reduce their environmental Flare gas losses that equates to 1.4 times the fossil CO2 impact with no compromise on emissions of the product. Additionally, (kilo tonnes) Total Lindsey Oil refinery performance or availability. the opening of our Bitumen import depot Through our additives or fuel economy on the Thames means fewer HGVs on the 2016 22.3 lubricants, our products reduce fuel country’s motorways. 2015 19.7 consumption. Bitumen low temperature 2014 22.4 asphalts, which get to temperature more quickly mean that lorries and vehicles * Bringing on-stream the Shetland Gas Plant and development of new assets in 2016 20 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17 CONTACTS GLOSSARY

Total Holdings UK Limited Total UK Limited b: barrel 10 Upper Bank Street One Euston Square bn: billion Canary Wharf 40 Melton Street boe: barrel of oil equivalent London E14 5BF London NW1 2FD boe/d: barrel of oil equivalent per day Tel: +44 (0)1224 297000 Tel: +44 (0)20 7339 8000 CTL: Coal to liquids Fax: +44 (0)1224 298999 Fax: +44 (0)20 7339 8033 GTL: Gas to liquids k: thousand Total E&P UK Limited Pamargan Products Limited LNG: liquefied natural gas Crawpeel Road 47 Mochdre Enterprise Park m: metre Altens Newtown mn: million Aberdeen AB12 3FG Powys SY16 4LE mw: mega watt Tel: +44 (0)1224 297000 Tel: +44 (0)1686 625181 t: metric tonne Fax: +44 (0)1224 298999 Fax: +44 (0)1686 627849

Total Finance Corporate Services Saft Limited Limited River Drive, South Shields, 10 Upper Bank Street Tyne and Wear. NE33 2TR Canary Wharf Tel +44 (0) (191) 456 1451 London E14 5BF Fax +44(0) (191) 456 6383 Tel: +44 (0)20 7719 7800 Fax: +44 (0)20 7719 7887 Stop-choc Limited Banbury Avenue Total Gas & Power Limited, Slough London Berkshire SL1 4LR 10 Upper Bank Street Tel: +44 (0)1753 533223 Canary Wharf Fax: +44 (0)1753 693724 London E14 5BF www.total.uk Tel: +44 (0)20 7718 6000 facebook.com/TotalUK Fax: +44 (0)20 7718 6005  @totalinuk Total Gas & Power Limited, Redhill Bridge Gate 55-57 High Street Redhill Surrey RH1 1RX Tel: +44 (0)333 0037874 Fax: +44 (0)1737 784900

Total Lindsey Oil Refinery Eastfield Road Immingham Lincolnshire DN40 3LW Tel: +44 (0)1469 563300 Fax: +44 (0)1469 563766 TOTAL IN THE UK | HOW WE DO BUSINESS IN THE UK 2016/17

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