InterGen confirms Island Power, ConocoPhillips gas sales agreement

Following is a press release from InterGen:

ISLAND POWER SIGNS GAS SALE AGREEMENT WITH CONOCOPHILLIPS FOR ITS PROPOSED 720MW CCGT PROJECT IN SINGAPORE

Burlington, MA, July 28, 2003 - InterGen today announced the signing of a Gas Sales Agreement for the Island Power Project, a 720-megawatt (MW) natural gas-fired, combined cycle power facility located on Jurong Island in Singapore.

Island Power Company Pte Ltd, a wholly-owned subsidiary of InterGen, signed the Gas Sales Agreement with ConocoPhillips (Grissik) Limited for the purchase of approximately 15 Bcm of natural gas over 15 years, commencing in 2005. The gas will be sourced from fields in South Sumatra, Indonesia, and this agreement represents Singapore's first wholly private sector gas supply contract. BPMigas, the Indonesian regulatory established to oversee the upstream oil and gas industry in Indonesia, has appointed ConocoPhillips (Grissik) Limited to sell gas on behalf of the State and Production Sharing Contract holders (ConocoPhillips, Talisman and Pertamina) in the Corridor Block supply area. The Gas Sales Agreement marks an important development in the forthcoming de-regulated gas market in Singapore.

Island Power will be the first independent power producer to participate in Singapore's de-regulated power pool market. Island Power Company Pte Ltd holds a generation license to produce up to 800 MW. Power sales will be targeted at a combination of long-term contracts and the merchant market.

Island Power will contribute to Singapore's economic development and help to meet the country's need for low cost, environmentally friendly generating capacity in Singapore.

InterGen is a global power generation firm. The Company is operating or building a total of 20 power stations representing over 16,000 megawatts (MW). The Company has projects operating, under construction and/or in active development in the United States, the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Turkey, Brazil, Australia, The Netherlands, Spain, Germany and Singapore. InterGen is a Shell-Bechtel venture. (End of release)