galoc proved reserves increase over 60 percent, page-8

62 Strat, I am not quite sure who has or will pay for what in terms of vessel hire. The standby vessel is a local PI vessel and very cheap and paid for by GPC. The work scope for the installation of the riser and moorings is Rubicon's and I would assume (never a great move!) they would be footing the bill to rectify any problems.

This is small fry though compared to the return on investment (development costs) lost through delay and the fact that oil price is now lower than when first oil was originally due. this is what a lot of investors in the Philippines are griping about I believe.

Dgrove has a point though. It is ok having a technical and commercial solution that fits your reservoir profile but you have to have competent management in place and chose competent contractors. Otherwise your risk mitigating solution could cost you dear. By their nature these solutions are low on capex and high on management demand. The next time round I hope investors wil be asking more questions about the development plan. Are the core competencies there? And even more important, does the contractor have the money to complete the project?

Avarian