Gulf Indonesia?s Q2 earnings down on lower crude price

Gulf Indonesia Resources Limited (GIR), a 72 percent subsidiary of Conoco Canada Resources on Thursday reported earnings of US$ 10 million for the second quarter of 2002, lower than last year?s corresponding quarter earnings of US$ 18 million.

"During the second quarter of 2002 we increased our sales volumes compared to the first quarter and matched our profit of US$10 million. Unfortunately, we were unable to improve on our first quarter 2001 profit principally due to lower crude oil prices and higher exploration expenses," said Paul C. Warwick, president and chief executive officer.

During the quarter, GIR signed MoU with state gas distribution company PGN for the supply of up to 50 MMCFD of south Sumatra gas to the island of Batam. GIR also said projects to supply additional gas to Caltex?s steamflood facilities in Duri, Riau and to Singapore remained scheduled for start-up during late 2002 and late 2003 respectively.

During the quarter, Conoco Canada made a cash tender offer of US$13.25 per common share for all of the shares in GIR that it does not own. The offer will expire at 6:00 p.m. New York time on July 19, 2002. (alex)