Press Release: PetroChina: Chronological report of Sukowati 5 well

On July 29, 2006 at around 00:20 hour, a directional development well Sukowati #5 in Tuban Block, East Java, encountered lost circulation while drilling at 6143? (1872 meter). The well started kicking during the process of pumping Loss Circulation Material (LCM), both annular preventer and pipe rams were activated and the well was shut in, the flow from the well as directed and controlled through the choke manifold and to flare pit. Since there is possibility that the gas from the well may contain H2S, the flare gas was lighted and burnt until 4:45 am. The well was then shut in the choke to monitor the pressure. The whole process took place without evacuating anybody, no body was injured, and no damage to the well location and surrounding environment. All drilling activities are in normal condition and under control.

The gas was flared around mid night. Noise caused by the gas flow through restriction seems to be louder at night. Some of people from surrounding villages came to see the flare outside the well site. After realizing no dangerous situation will affect them, they proceed to return to their home in the villages. In the morning of July 30, 2006, few people from the villages went to the local hospital for physical check up. None of them was poisoned by H2S.

Tuban block is operated by Pertamina, an Indonesia National Oil Company, while parties having working interest in the block are Pertamina, PetroChina, and Medco.

PetroChina International Java Ltd.

August 1, 2006