OPERATIONS

First oil for West Seno

Unocal Makassar, Ltd. has begun oil production from Phase 1 of its deepwater West Seno project offshore East Kalimantan.

Current production is 14,000 barrels of oil per day (BOPD) and 18 MMcf per day of gas from the first four wells already in production. The fifth well will be put on production within a week and will bring production to over 17,000 BOPD.

Overall, gross production from Phase 1 is expected to reach between 35,000 - 40,000 BOPD by the end of the year when additional wells are completed. Additional production expected in 2004 as development drilling continues.

By completion of Phase 2 development in 2005, daily production is expected to peak at 60,000 barrels (8,220 metric tonnes) of oil and 150 million cubic feet (4.2 million cubic metres) of gas per day.

Unocal Makassar expects to recover 210 to 320 million barrels of oil-equivalent from the West Seno field and is the country's first deepwater oil and gas project.

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