Texaco Press Release - Texaco Announces First Gas Delivery to Singaporefrom Indonesia's Block B
FOR IMMEDIATE RELEASE: TUESDAY, JULY 3, 2001.
Jakarta, July 3, 2001 - Texaco and its partners today announced the first delivery of natural gas to Singapore from South Natuna Sea "Block B" in the West Natuna Sea, Indonesia. This first natural gas delivery is part of the 22-year Gas Sales Agreement between Pertamina, Indonesia's state-owned oil and gas company and SembCorp Gas Pte. Ltd, to deliver 325 million cubic feet of natural gas per day (mmcfd) from Indonesia's West Natuna Sea to Singapore.
Natural gas is piped to Singapore via the 656 km-long West Natuna Transportation System (WNTS), one of the world's longest undersea pipelines.
The gas supply contract was signed in early 1999 and is expected to bring between $7 billion to $8 billion in revenue which will be split between the Indonesian government and the three production sharing contract holders.
In March 2001, South Natuna Sea "Block B" partners; Conoco (operator) Inpex Natuna, Ltd and Texaco Block B South Natuna Sea Inc.; announced a second gas sale when Block B was named the sole supplier to deliver 1.5 trillion cubic feet (tcf) of natural gas to Petronas, Malaysia's National Oil Corporation.
"The worldwide demand for natural gas is increasing at a significant pace. Texaco's long-term strategy of building our natural gas resources and finding innovative methods for commercializing this gas is beginning to yield dividends. Indonesia's Block B is one of several natural gas projects that Texaco is already bringing to market," said Robert Solberg, President of Texaco Commercial Development.
According to Chuck VanAllen, Vice President of Texaco's Indonesia Operations, "The first Block B gas delivery to Singapore and the recently announced second sale of Block B gas to Malaysia mark the beginning of a long and profitable relationship between the Block B partners, Indonesia, Singapore, and Malaysia. Through the transport of natural gas resources, we are able to provide Singapore and Malaysia with a clean, reliable, and cost effective supply of energy while generating increased revenues for the Government of Indonesia and the Block B partnership."
Conoco Indonesia Inc. Ltd. holds a 40 percent working interest in the Block B PSC and is a contractor of PERTAMINA. Partners of Conoco are Inpex Natuna, Ltd with 35 percent and Texaco Block B South Natuna Sea Inc. with 25 percent.
Cautionary Note to U.S. Investors:
This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
The forward-looking statements are subject to risk factors associated with the gas businesses. It is believed that the expectations reflected in these statements are reasonable, but may be affected that by a variety of variables which could cause actual results or trends to differ materially, including, but not limited to: production results, reserve estimates, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates, and worldwide and industry economic conditions. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 26, 2001, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as expected gas production, gas in place and estimated resources, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the Supplemental Oil and Gas Information disclosure in our 2000 Annual Report on Form 10-K referenced above.
Updated: July 2001