Minister launches Unocal West Seno Floating Production Unit hull, signifies progress toward 2nd quarter 2003 oil production

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10 September 2002

His Excellency Minister Purnomo Yusgiantoro, Minister of the Department of Energy and Mineral Resources, today presided over the launch of Unocal Makassar Ltd.'s (UML) West Seno floating production unit (FPU) barge hull from Surabaya in East Java.

Also attending the ceremony were Mr. Phillip Antweiler, US Consulate General in Surabaya, Mr. Rachmat Sudibjo, Head of BP MIGAS, Mr. Iin Arifin Takhyan, Pertamina Director of Upstream, Mr. Ibrahim Hasyim, Pertamina Deputy Director of Downstream, Mr. Adwin Suryohadiprodjo, President Director of PT PAL, and Mr. S.K. Park, Vice President of Hyundai Heavy Industries.

The Minister noted that today's event "marked exciting and significant progress toward first oil production from the West Seno Field — Indonesia's first deepwater development."

He also reminded those present that this pioneering project "will surely lead to other new deepwater developments - which can only benefit Indonesia and her people."

On behalf of Unocal Makassar Ltd., President Brian Marcotte echoed the sentiments of the minister adding, "We are very proud of the progress made in the development of the West Seno project and appreciate the partnership with the Indonesian government and communities that made this day possible."

The FPU hull was fabricated by PT Perusahaan Angkutan Laut (PAL), an Indonesian government-owned shipyard in Surabaya. From there, the hull will be towed to Ulsan, Korea, for outfitting with the topside processing modules for treating oil and natural gas from the field.

The FPU will serve as the central processing unit for Phase One of the West Seno development. Flexible steel pipelines will link the FPU to the nearby Phase One Tension Leg Platform.

The FPU has a capacity of 60,000 barrels of oil per day and 150 million standard cubic feet of gas per day. It measures 152 meters in length, 38 meters in width and 12 meters in height. It will be moored in approximately 1,000 meters of water in the Makassar Strait, offshore East Kalimantan.

The processed oil and gas will be shipped through separate 12-inch submarine pipelines over 62 kilometers from the FPU to Unocal's onshore Santan terminal on East Kalimantan.

The West Seno Field lies in the Makassar Strait, about 190 kilometers northeast of Balikpapan, East Kalimantan, in water depths of between 732 meters and 1,000 meters. The field was discovered in 1997.

The West Seno development is significant to the country for several reasons. The project is expected to generate more than US$1 billion in taxes and revenue during the life of the project. New offshore jobs (71 direct Unocal employees, and an estimated 150 contractors during the drilling phase) and support businesses in East Kalimantan will be created and continue for many years in the future. Oil production in 2003 and beyond will offset declining production in other areas of Indonesia.

As the first deepwater development in Indonesia, the West Seno project could lead to other deepwater developments in the area, thereby creating many new opportunities in the region.

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