press release

Clough Group wins $160M share of major new Indonesian oil field work

The following news release was issued by Clough Limited.

Perth, Western Australia - Sept. 25, 2001 -- The Clough group has been awarded contracts worth US$80 million (A$160 million) as part of a consortium which will construct Indonesia's first deepwater production oil field.

Work is to start immediately on the West Seno field in the Makassar Strait between Kalimantan and Sulawesi, with project completion and production start-up due in the first quarter 2003.

"This is the next major oil and gas project to get off the ground in Indonesia and confirms our optimism about the prospects for winning more new work in the sector, particularly in South East Asia," Dr Brian Hewitt, Clough Limited Managing Director said.

The latest work takes the total value of oil and gas sector contracts won by the Clough group since last September - when global crude oil prices began generating new petroleum industry investment and field developments - to A$431 million.

Today's announcement comes after Clough was awarded a US$44 million (A$86 million) contract in July to develop the Lakshmi gas field project off India's north-west coast.

The West Seno field is being developed by the US-based Unocal group. In July, Clough also announced it had been awarded a tranche of contracts worth A$55 million under a seven-year deal to undertake all Unocal's wellhead platform and submarine pipelines work in the Gulf of Thailand.

"West Seno is a great project for the Clough group to be involved in and testifies to our ability to secure work with quality clients like Unocal and then grow the relationship based on our demonstrated capabilities and performance," Dr Hewitt said.

The West Seno field is located in 1,050 metres of water, 200 kilometres north-east of Balikpapan on the central east Kalimantan coast. Balikpapan is home to a major Clough group operational base. The new field will eventually have two platforms and 48-52 wells, with planned production of 60,000 barrels per day.

The field development project is worth a total of US$344 million (A$688 million). The full scope of the project includes a Floating Production Unit (FPU) of 12,000 tonnes and a Tension Leg Platform (TLP) of 6,000 tonnes, fixed to the seabed, plus associated offshore and onshore production facilities.

Within the consortium, Clough's Offshore Division's project scope is worth US$70 million (A$140 million) for the engineering, procurement and installation of the submarine pipelines and all other installation work, including moorings, piles and tendon legs. Two 62-kilometre long pipelines are to be constructed as part of the work, to take the oil and gas to onshore facilities at Santan on Kalimantan.

The Clough group's Indonesian subsidiary, PT Petrosea, has a share of the work worth US$10 million (A$20 million) to undertake all onshore terminal modifications at Santan, plus provide logistical and administration support for the project.

The third member of the consortium, Hyundai Heavy Industries, has been awarded work worth US$265 million (A$530 million) to fabricate the FPU and TLP facilities in South Korea and deliver them to the site by dry tow.

With the addition of this contract, Clough's work in hand now stands at A$840 million.

Updated: September 2001