The Woodside-operated offshore Chinguetti oil development offshore Mauritania remains on schedule for first oil in February 2006. The project is 88% complete.

The Chinguetti joint venture has completed an update of estimated project costs. Known project costs to complete the installation and start-up total US$705 million. An additional US$45 million has been set aside to cover unplanned contingencies that may occur during the offshore, deepwater installation program.

The current project cost estimate is primarily a result of increased drilling scope due to complex geology, resulting in extra time to drill sidetracks, as well as additional costs to prepare the subsea flowlines for installation.

The Chinguetti joint venture is operated under a production sharing contract subject to project cost recovery. Chinguetti joint venture interests are: Woodside 47.38448%; Hardman Resources 19.00800%, BG Group 10.23440%, Premier 8.12328%, Roc Oil 3.24984% and Groupe Projet Chinguetti 12%."