Phillips Increases Interests in Timor Sea;

Phillips Increases Interests in Timor Sea; Agreement with Woodside and Shell for Timor Sea Cooperation Envisions Gas Sales in 2004
Feb, 22
Phillips Petroleum Company Australia Pty Ltd and other of its subsidiaries ("Phillips") have agreed to acquire an additional interest in the Greater Sunrise field (subject to pre-emption) -- bringing Phillips' total interest to 30% -- and have entered into an agreement with Shell to purchase a 25% interest in the Evans Shoal gas field. The Evans Shoal offer is subject to Board approvals and pre-emption rights.
Phillips, Woodside and Shell today also announced they have finalized principles for cooperative development of their Timor Sea gas resources. This cooperative effort includes the Bayu-Undan and Greater Sunrise fields.
The agreed principles, which cover supply of gas and marketing of liquefied natural gas (LNG), pipeline infrastructure and field optimization, will be developed further into cooperation agreements which will be ratified and executed by all relevant stakeholders by mid-year.
The agreed principles further envision production to commence from Bayu-Undan in 2004 to supply domestic customers in the Northern Territory and elsewhere, with Greater Sunrise production commencing as early as the second half of 2006. Gas required to satisfy Greater Sunrise deliveries prior to this time will be made available to the Greater Sunrise participants from Phillips-owned equity reserves in Bayu-Undan and possibly other participants in the Bayu-Undan project.

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