Conoco SE Asia earnings to exceed $100M on Gulf deal

Conoco SE Asia earnings to exceed $100M on Gulf deal

SINGAPORE (Dow Jones): Conoco Indonesia Inc. Ltd., a wholly owned subsidiary of Conoco Inc. expects 2001 earnings from Southeast Asian production to more than double from 2000, company President and General Manager Patrick Meyer told Dow Jones Newswires in an interview Wednesday.

The 2001 earnings projection assumes Conoco's successful acquisition of Gulf Canada Resources Ltd., a 72 percent shareholder of Gulf Indonesia Resources Ltd.

Incorporating earnings from a 72 percent stake in Gulf Indonesia, natural gas sales, and oil production from Conoco Indonesia's operations in West Natuna, Conoco's earnings from Southeast Asia following the acquisition is set to exceed $100 million in 2001, Meyer said.

After the acquisition, Conoco's proven oil and gas reserves in Southeast Asia will more than double to 365 million barrels of oil equivalent, and total net production from the region in 2001 will more than triple on year.

Conoco has made "significant progress" in exploration discoveries and production in Vietnam, Meyer said.

In Indonesia, where Conoco's Southeast Asian oil and gas investments are concentrated, Conoco and Gulf Indonesia will continue operating as separate entities post-acquisition as Gulf Indonesia isn't a wholly-owned Gulf Canada unit.

"We are still separate companies and there would be very few changes in the management of both companies," Meyer said, adding that both will still be indirect competitors in the Indonesian context.

Conoco and Gulf operate in different areas within the country but are both keenly pursuing gas projects, Meyer said.

"We don't compete head to head because of our focus in separate parts of Indonesia," Meyer said.

Conoco's gas projects are concentrated in West Natuna, while Gulf Indonesia's gas production comes from South Sumatra. Both are involved in gas sales contracts that Indonesia has signed with Singapore and Malaysia.