Release: SPC: SPC evaluates Jeruk discovery

(singapore, December 9, 2004) Singapore Petroleum Company Limited (?SPC? ) wishes to advise that oil and gas have been discovered in the Sampang Production Sharing Contract (?Sampang PSC?), Indonesia.

Santos Ltd (?Santos?), co-venturer and operator of the Sampang PSC, in its announcement of 18 October 2004, reported that the Jeruk-2 well which was drilled on a sole risk basis flowed 7,488 barrels of oil and 2.21 million cubic feet of gas per day on test. The Jeruk-2 well is located offshore East Java, about 42 kilometres from Surabaya in water depth of 44 metres.

According to the Joint Operating Agreement of the Sampang PSC and the terms therein, SPC is entitled to reinstate its right to participate in the Jeruk discovery subject to the payment of:-

1. 40% share of the incurred cost of the discovery/appraisal wells; and

2. a premium of 10 times its 40% share of the cost of the discovery well and five times its 40% share of the cost of the appraisal well, payable in kind out of its share of future production from a Jeruk development.

SPC has the right to reinstate its interest in the Jeruk discovery in each stage of any future appraisal or re-working programme, up to the receipt of a proposed plan of development on the discovery.

Aside from its right of reinstatement in the Jeruk discovery, SPC continues to have a 40% interest in the remaining Sampang PSC area. SPC and its partners in the Sampang PSC are evaluating a number of prospects in the block for possible exploration drilling in 2005. A large 3-D seismic survey in the block is planned to be acquired shortly.

SPC will evaluate and consider its right to reinstate its interest in the Jeruk discovery upon further technical and commercial review and analysis. Further announcements will be released by the Company as and when appropriate.(end of release)

Background

SPC is a regional oil and gas company with interest in oil and gas exploration and production, refining, terminalling and distribution, marketing and trading of crude and refined petroleum products. It is an associated company of Keppel Oil & Gas Services Pte Ltd, a wholly-owned subsidiary of Keppel Corporation Limited.

SPC holds its interest in the Sampang PSC through its wholly owned subsidiary, Singapore Petroleum Sampang Ltd (formerly known as Coastal Indonesia Sampang Ltd).

Participants in the Sampang PSC are:Santos (Sampang) Pty Ltd 45%, Singapore Petroleum Sampang Ltd 40%, and Cue Sampang Pty Ltd 15%