Enterprise Oil Announces First Oil Through Italian Pipeline

Enterprise Oil has announced that first oil flowed through the pipeline linking the Val d'Agri Oil Centre at Viggiano in Italy's Southern Apennines to the Taranto refinery on October 30, 2001, as part of a six-month commissioning phase.

The construction of the 20-inch pipeline, which covers 136 kilometers and has a capacity of 150,000 barrels of oil per day, was completed in early October. The line is currently carrying crude from the Monte Alpi/Enoc fields in the Val d'Agri area of the Basilicata region to Taranto and will enable production to reach around 45,000 bopd by year-end. Once development work is completed on Cerro Falcone, it is anticipated that 104,000 bopd will flow through the oil center in 2003.

Sam Laidlaw, Chief Executive Enterprise Oil, commented: 'This is a milestone for Enterprise in Italy, where many years' hard work is now coming to fruition. The Val d'Agri region will provide the group with important revenue and be a key part of our future production. We will now focus on increasing output from Monte Alpi, the development of the Cerro Falcone field and moving Tempa Rossa towards sanction. I am also pleased to be able to report that after extensive consultation with relevant stakeholders we have conducted all our activities in compliance with regional environmental requirements in what is an area of outstanding natural beauty, and that the project has contributed significantly to the local economy.'