Brunei Shell Proceeding with Egret Field Development

Brunei Shell Petroleum Co. is on schedule to proceed with the development of the new Egret oil and natural gas field offshore Brunei this year. The Egret field is expected to supply gas to Brunei Liquified Natural Gas plant in Lumut, and to meet an anticipated shortfall in BLNG's gas demand in the fourth quarter. The cost of the development is approximately US $79 million.

The first gas production from the field is expected by August 2003. Phase 2 of the project will be oil development, with production coming onstream in 2006. The Egret field development comprises two phases involving construction and installation of a drilling platform. A contract worth US $22 million for Egret Phase 1 gas development project was awarded to Technip-Coflexip earlier this year. Under the terms of the contract, Technip- Coflexip will be responsible for project management, engineering, procurement and fabrication.