Tullow's position in relation to The Daily Star article "Fresh moves for awarding Blocks 9 and 11 to Tullow" published on August 3. 1999 is as follows:

1. Tullow's bids for blocks 9 & 11 were the top bids on the basis of the criteria set by Petrobangla and its advisers, in accordance with standard international practice. Tullow's work programme and licences are in line with those expected by the International Industry to be offered for quality blocks. Tullow has never offered a commitment it could not carry out. or that was not in the best interest of the local Government.

2. While Tullow has all the necessary technical expertise and financial support to fulfil its obligations. While Tullow was prepared to take 100% and Rejoinder

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support this with a 100% Bank Guarantee, we offered to the Government the. right to select a partner in each of the blocks if the Government so wished.

3. Tullow's bids had always included a 10% carried interest for BAPEX and a 100% bank i guarantee was offered in each I case in respect of our obliga- , tions.

4. No "political high ups" : have stakes in or with Tullow. The 5% interest in our subsidiary. Tullow Bangladesh Ltd. held by Co) Kazi Shahid Ahmed has been publicly disclosed and was issued in consideration for the provision of typical agency services over a lengthy period 18 from Okland and Rexwood. That transaction is currently following the approval procedure.

6. Tullow's recent financial results, which mirrored other industry companies, reflected the low oil price at the time and Tullow’s conservative accounting policies. They have no bearing on Tullow's underlying assets or its ability to fulfil its second round obligations.

7. The linkage of the references to Scimitar with Tullow's name are clearly malicious and especially defamatory. Tullow has had a successful 13 year period as an international oil and gas exploration company and has entered into numerous onerous commitments in over 15 countries. Never once have we defaulted on an obligation to a government, or a government entity, and we have no intention of doing so now.