Basker-Manta project on track

Offshore staff

(Asia-Pacific) - After the successful flow test and sampling of Basker-2, theOcean Patriot secured the well and departed the location. The FPSO Crystal Ocean is now ready for connection to the Basker-2 wellhead offshore Gippsland Basin.

The flowline laying vessel, CSO Venturer, arrived in the Gippsland Basin on October 10. The CSO Venturer will be laying the flowline and the control umbilical between the Crystal Ocean and the Basker-2 wellhead as well as the export line to the already installed single point mooring (SPM).

The SPM will be the location of the shuttle tanker,Basker Spirit, anticipated to arrive next week.

The work of theCSO Venturer is expected to be completed by mid next week, subject to favorable weather conditions.

Commissioning of the entire production system is anticipated to occur late next week on the basis of a trouble-free operation.

The participants in the BMG joint venture are Anzon Australia Ltd. as operator with 62.5% and Beach Petroleum Ltd. with 37.5%.

10/12/05