2013 annual report, page-7

Shamish

Thanks.

I agree that development refers to the activities you say - but the engineering assistance, design services are front end and apply as much to the cold boxes, loading arms etc, as to the ground works at Keera. This equipment cost in the vicinty of $200m.

The LNG capitalised development costs are been disclosed in each of the years as follows (2009 was disclosed in 2010):

2009: US$184m
2010: US$208m
2011: US$224m
2012: US$226m
2013: US$277m.

Have a look at these numbers - all of this equipment was ready years ago (2010/2011)- but something was going on behind the scenes to prevent it being put on the ground. I know not what. But the issues with Bumi, BP Migas/SKK Migas, the string of arrests for bribes, as well as the give away of shares in Inpex may give us some inkling.

As for the slow progress since the POD - I don't know enough. I think what we are looking at is a fair amount of progress on the ground works - the earlier photos don't show much other than some piling. The latest photos appear to show at least part of a pad complete. I heard they were delayed by the monsoon flooding. Combine monsoons with a site beside the sea and I suspect the ground works here are a bit like an iceberg - there is a sh*t load going on under the surface. But I am guessing. If there is an engineer in the room please raise your hand!!!

However to your point - there has been a fudge where EWC were expecting to produce LNG by Q214. They now expect to have all the pads finished and the equipment set up by Q2 and they will commence commissioning thereafter. I also think they will need to complete the wasambo field works by then as well as it is that gas earmarked for LNG. Therefore I would be surprised to see production by Q4 2014/Q1 2015.

This is a frustrating process. I think we can take some comfort from the relatively good progress in expanding the PTES power station from 135mw to 315mw, and the good progress in the Philippines - I honestly think that shows the impediment is not EWC and should the whole story be known (I dont know the story) that EWC has navigated some tough waters well.

In a prior post I am now less concerned about the completion of the LNG facility as EWC proving up sufficient reserves to justify the share price.