Conoco Receives Approval to Develop Five Natural Gas Discoveries

Conoco (U.K.) Limited and its co-venturers GDF Britain Limited and Tullow Exploration Limited, have received government consent to develop five natural gas discoveries adjacent to the Caister and Murdoch fields in the southern area of the North Sea. It is expected that the US $294 million CMS III project will achieve first production of natural gas in the fourth quarter of 2002.

A potential 500 billion standard cubic feet of natural gas from the Hawksley, McAdam, Murdoch K, Boulton H and Watt reservoirs will be produced through subsea wellheads and flowlines to the adjacent Murdoch production platform. From there, the existing Caister Murdoch System (CMS) pipeline will transport it 115 miles to the Conoco-operated Theddlethorpe Gas Terminal in Lincolnshire, England.

The Conoco-operated Caister and Murdoch natural gas fields, which are located 115 miles north east of Lincolnshire, England, entered production in October 1993. The participating interests are Conoco (U.K.) Limited, as operator with 42.24 percent; Consort Caister Limited 24.5 percent; GDF Britain Limited 16.25 percent, and Tullow Exploration Limited with the remaining 17.0 percent. Partners in the CMS III development are Conoco (U.K.) Limited as operator with 59.5 percent; GDF Britain Limited 26.4 percent, and Tullow Exploration Limited with the remaining 14.1 percent.