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.