BAYU-UNDAN Gas Recycle Project

Unitisation of the interests of the co-venturers in ZOCA 91-12 and 91-13 occurred on the 14th July 1999, when the Unit Agreement was signed and Phillips Petroleum (91-12) Pty Ltd was confirmed as Unit Operator. Project Sanction, which is currently anticipated by the end of 1999, remains subject to approval of the Development Plan by the Unit Participants and the Joint Authority.

Information for Suppliers and Contractors

The project team is still focused upon the activities necessary to secure approvals from the Unit Participants and the Joint Authority to enable the development to move forward in an expeditious fashion.

No firm details of the project schedule are presently available as they are dependent upon the resolution of some issues of significance among the Unit Participants. The project recognises the interest held by suppliers and contractors in the project schedule and intends to publish likely milestones as soon as possible.

Work is however progressing on qualification activities for the large fabrication contracts (integrated decks and jackets) and hook-up and commissioning. Potential sources for these needs have been contacted.

All other suppliers and contractors are asked to only contact the project if absolutely necessary and to do so in writing or by e-mail (see contacts page). The project does not intend to commence detailed engineering until the end of the year.

The project intends to phase in all the remaining elements of the original website structure over the next few weeks and visitors are advised to return later when more information will be available. In particular the registration system and the materials, services and equipment list is nearing completion and will be accessible in the very near future.

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.