BAYU-UNDAN Gas Recycle Project

Project Status

23RD AUGUST 2002


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Overall Project Status update – August 2002

June and July were again important months for the Bayu-Undan Gas Recycle Project. The project continues to move forward as scheduled.

Offshore, the CPP jackets were installed during this period. The infield pipelines were tied in and the preparations are being made for the installation of the bridges and the flare tripod in late August/early September. On average there are in excess of 400 people offshore on any given day and 8-9 vessels in the field. We fly on average 7 helicopter flights to the field per week. What was just a few months ago an artist concept is starting to take place in physical form offshore.

Drilling is progressing with the batch drilling of the initial hole sections for the 6 WP1 wells. The WP1 drilling program is scheduled to continue for approximately 8 more months before moving over to DPP to complete the drilling of the development wells.

In Batam, we are nearing completion of the bridges and flare tripod with sailaway currently scheduled for late August. This will mark the conclusion of the activities in Batam which started in January 2001.

With the completion in Batam, the onshore focus will truly be directed towards Korea and the supply of the CPP decks by Hyundai Heavy Industries and the supply of the FSO by Samsung Heavy Industries.

The decks are really taking shape with equipment installed over the last months and piping and cable installation underway. There is a significant amount of work to go on these decks over the next months as we start mechanically completing the systems.

The FSO is coming together nicely and it is sometimes difficult to believe that it was only 1 April when the work in the dry dock commenced. The launching of the FSO from the dry dock is due in August. This will then clear the way for the remaining outfitting and completion of this massive facility.

One of the other significant events in the last months was the presentation of Supplier Excellence Awards to a select set of suppliers to the project. These suppliers have demonstrated superior performance either in the technical and/or in the timely execution of their scope of work. Please see our supplier page for details of these 5 excellent suppliers. Their efforts have contributed significantly to the success of this project.


 

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.
Updated 08/06/04