15TH NOVEMBER 1999
In late October 1999 under terms of their operating agreement, the majority of the Bayu-Undan co-venturers approved the gas recycle development phase of the project. First production of liquids is projected to begin by late 2003 or early 2004.
The US$1.4 billion gas recycle project will involve producing and processing natural gas, separating and exporting condensate and liquefied petroleum gas liquids, and re-injecting lean gas back into the reservoir.
The project is planned to allow for the future export of lean gas, subject to future co-venturer and government approval of a gas export development project. Phillips and its co-venturers are continuing to make progress toward the establishment of gas markets for Bayu-Undan gas resources.
Following the outcome of a referendum conducted in East Timor in August 1999, Indonesias Peoples Consultative Assembly adopted a decree revoking its annexation of East Timor. Authority over East Timor will be transferred to the United Nations Transitional Administration in East Timor. It is expected that the UN will, in due course, assume the responsibilities under the Timor Gap Treaty previously held by Indonesia, including the administrative obligations performed by the Ministerial Council and Joint Authority.
Phillips has had substantive and encouraging discussions with relevant parties involved in East Timors transition to independence. The company and its co-venturers will continue to monitor the legal, fiscal and administrative arrangements under the Timor Gap Treaty and will proceed with development in a manner warranted by these arrangements.
The Development Plan will soon be presented to the Joint Authority for final approval. Joint Authority approval is expected before the end of 1999.
Mobilisation for Detail Engineering is anticipated to also be complete by the end of 1999. Detailed engineering will be performed in the Phillips Project office in Perth.
Engineering andProcurement Contract
On behalf of the co-venturers Phillips has issued a Letter of Intent to TIGA Joint Venture for the performance of the Detailed Engineering and Procurement Contract. TIGA (Total Integrated Group Approach) is a joint venture between Fluor Daniel and Worley. The Engineering and Procurement Contract will be undertaken on an integrated basis, with Phillips and TIGA personnel working within an "Integrated Team" in joint offices at 1 Mill Street, Perth, WA.
FSO and Mooring System
A Letter of Intent (LOI) has been issued to the Korean shipbuilding company, Samsung Heavy Industries Co, Ltd for the construction of an Integrated 130,000 m3 Condensate / 95,000 m3 LPG Floating Storage and Offloading Facility (FSO) Vessel for the Bayu Undan Gas Recycle Project. The vessel is expected to be completed by mid 2003.
A Letter of Intent (LOI) has also been issued to Advanced Production and Loading systems for the supply of a mooring system for Floating Storage and Offloading Facility (FSO) Vessel.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR"
PROVISIONS OF THE U.S. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The contents of this website contain forward-looking statements made by, or on behalf of, Phillips and the other Unit Participants. Neither Phillips nor the other Unit Participants undertake to update or revise any of these forward-looking statements. These include, without limitation, statements relating to operations, plans, strategies, objectives, expectations and limitations. These statements are not guarantees of future performance or result. Rather, due to risks, uncertainties and other factors, actual results may differ materially from those expressed in any such forward-looking statement. The following are certain (but not necessarily all) important risk factors that could cause actual results to so differ:
Plans to drill wells and develop Bayu-Undan are subject to: the ability to obtain agreements or consents between or from co-venturers and governmental authorities; engaging drilling, construction and other contractors; geological, land or sea conditions; world prices for oil, natural gas and natural gas liquids; applicable law and regulatory requirements; and the availability of economical financing.
Estimates of proved reserves, raw natural gas supplies, and project cost estimates have been developed using the latest available information and data, and recognized techniques of estimating, including those prescribed by the U.S. Securities and Exchange Commission, generally accepted accounting principles and other applicable requirements.
Please note that all references to Phillips or Phillips Petroleum on this page refer to Phillips Petroleum (91-12) Pty Ltd as Unit Operator for the Bayu-Undan development, except as specifically mentioned otherwise.
Copyright 2001 Phillips Petroleum (91-12) Pty Ltd. All rights reserved.