BAYU-UNDAN Gas Recycle Project

Project Overview

Project Status

Project Photos

Site Cameras

Project Status

2ND SEPTEMBER 2002

2002 Updates | 2001 Updates | 2000 Updates | 1999 Updates

Overall Project Status update – Septemebr 2002

August was another month of milestones for the Bayu-Undan Project.

Offshore, the installation of the FSO mooring system commenced and should complete in early September. The weather has been kinder to us this month and weather downtime was minimal.

Drilling is continuing with the batch drilling of the initial hole sections for the 6 WP1 wells to be complete early next month.

Another chapter finished this month with the sail away of the bridges and flare tripod from Batam on 17 August. The site team was demobilized at month end.

The decks in Korea continued to take shape with the lift of the DPP main deck complete this month. Equipment installation commenced and progress towards the first mechanical completion milestone in October is well underway. Excessive rain in Korea has impacted progress somewhat, but the activity level remained high even during the Korean annual holiday week.

The launching of the FSO from the dry dock is due August 31. A typhoon predicted for late August may delay this until the first week of September. Steel and piping outfitting have progressed well and work is well underway for the instrument and electrical outfitting work include the pulling and termination of nearly 500 km of cable.

Overall, the project remains on track with some exciting months ahead.

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.