Interim Results

Enterprise Oil PLC
6 September 2001

PART 1

                             2001 Interim Results

Enterprise Oil, one of the world's leading independent exploration and
production companies, today announced its results for the six months ended 30
June 2001. The main points are:

  * Post tax profits of £204 million (£162 million in corresponding period
    of 2000£);

  * Earnings per share of 42.3 pence (first half 2000: 32.3 pence£);

  * Interim dividend of 3.15 pence (first half 2000: 3.0 pence);

  * Production of 255,116 barrels of oil equivalent per day (boepd)
    including associated production (first half 2000: 277,056 boepd);

  * Substantial progress on operated projects in Ireland and Brazil, and
    non-operated ventures in the UK, Norway and US Gulf of Mexico;

  * Start-up of new facilities at Val d'Agri oil centre in Italy;

  * Drilling success in the UK, Norway and Brazil.

£ The results from the six months ended 30 June 2000 have been restated for
the effects of applying FRS19 'Deferred Tax'



Announcing the results, Sir Graham Hearne, Chairman, said: 'It is with much
pleasure that I can report that the first half of 2001 has seen Enterprise
continue its recent progress. Our post tax profit of £204 million demonstrates
the group's ability to deliver outstanding financial results and robust
returns, and we will not be complacent as we seek to continue our drive to
create value for our shareholders, which remains our prime objective.'

Chief Executive Pierre Jungels commented: 'We continue to focus on the
maintenance of capital discipline, and gearing has remained low. This, coupled
with continuing strong cash flows, enabled the group to initiate its stock
repurchase programme during the period. In addition, the group has seen some
success across all elements of its strategy: exploration and appraisal, new
field developments and asset trades. The rest of 2001 will be an important
time for Enterprise, as the group further progresses its operated developments
and maintains a busy exploration and appraisal programme.'

                                     ****

A copy of the Stock Exchange announcement is attached.

Copies of the Interim Statement are due to be posted to the Company's
shareholders on 10 September 2001. Copies will be available to the public at
the registered office at Grand Buildings, Trafalgar Square, London WC2N 5EJ.


For further information, please contact:
Pierre Jungels, Chief Executive                         [phone]
Andrew Shilston, Finance Director                       [phone]
Patrick d'Ancona, Head of Public Relations              [phone]
Peter Reilly, Head of Investor Relations                [phone]
Sucharita Sethi, Senior External Affairs Advisor        [phone]



                              Enterprise Oil plc

                         Interim Results Announcement

                          Thursday, 6 September 2001


Highlights
                                                     Six months      Six months
                                                          ended           ended
                                                   30 June 2001    30 June 2000
                                                    (unaudited)     (unaudited)
                                                                    (Restated**)
                                                             £m              £m
Turnover                                                    804             835
Operating profit                                            465             477
Profit before tax                                           476             457
Profit after tax                                            204             162
Profit after tax excluding exceptional item*                204             205
Earnings per share                                        42.3p           32.3p
Dividends per share                                       3.15p            3.0p
Average production (barrels of oil equivalent
per
day) including associated production                    255,116         277,056
Average realised oil price                      £18.54 ($26.79) £17.80 ($28.08)
Cost of sales per boe produced                            £5.94           £5.47
Operating expenditure per boe produced                    £2.63           £2.30



** The results for the six months ended 30 June 2000 have been restated for the
effects of applying FRS19 'Deferred Tax' (see note 1 to the accounts)

* The exceptional item related to the results for June 2000 (see note 3 to the
accounts)



Chairman's Statement
     Enterprise has It is with much pleasure that I can report that the first
      continued its half of 2001 has seen Enterprise continue its recent
   recent progress, progress.
         delivering
        outstanding Our post tax profit of £204 million demonstrates the
  financial results group's ability to deliver outstanding financial results
                    and robust returns. Crude oil prices maintained their
                    recent levels in the $23-26 per barrel range and we also
                    benefited from a favourable exchange rate.

                    Recent high oil prices should be seen in the context of a
                    cyclical business. Initially we used the cash surpluses to
                    increase our financial strength after the very low oil
                    price in 1998. Our attention is now focused on meeting our
                    production targets and enhancing the quality of our
                    portfolio, partly by making selective disposals of assets
                    no longer considered core in a relatively strong market, as
                    well as by making selective acquisitions both of assets and
                    acreage in our core areas as opportunities arise. The
                    disposal of our Danish interests is an example of the
                    former, and the acquisition of the Petrobras UK portfolio
                    an example of the latter. This policy will be pursued in
                    parallel with returning capital to shareholders as
                    circumstances permit.

                    In the context of our organic investment programme, I can
                    report that the first half of 2001 has seen substantial
                    progress made on our operated developments in Ireland and
                    Brazil. In addition, non-operated projects in the UK, US
                    and most notably Italy are nearing completion. Our drilling
                    programme to date has achieved mixed results. Successes in
                    the UK, Norway and Brazil have been offset by
                    disappointments elsewhere, though several key wells in this
                    year's programme are still to be completed. We have also
                    enjoyed strong lease sale and licensing round performances,
                    not least in Brazil where we continue to establish
                    ourselves as a leading player in the industry.

                    Our policy on distribution of funds to shareholders now
                    embraces a dividend which is sustainable even at very low
                    oil prices and buy-backs when circumstances allow. The
                    Board has declared an interim dividend of 3.15 pence,
                    payable on 1 November 2001 to shareholders on the register
                    at close of business on 14 September 2001, and the stock
                    repurchase programme is active.

                    We remain committed to maintaining capital discipline and
                    planning the business through the oil price cycle. I can
                    assure you that we will not be complacent as we seek to
                    continue our drive to create value for our shareholders,
                    which remains our prime objective.



                    Sir Graham Hearne

                    Chairman



Chief Executive's Review

 Enterprise has The first half of 2001 saw Enterprise deliver a strong
 delivered a    financial performance, with post tax profits of £204 million,
 strong         compared to £162 million* in the same period of last year. With
 financial      a realised oil price of £18.54 per barrel (first half 2000: £
 performance    17.80) reflecting strong crude prices and a favourable exchange
                rate, the group achieved a return on capital of 30.1 per cent
                on an annualised basis.

                We continue to focus on the maintenance of capital discipline,
                and gearing remained low, at 34 per cent (full year 2000: 39
                per cent*). This, coupled with continuing strong cash flows,
                enabled the group to initiate its stock repurchase programme
                during the period.

                During the first half of the year, the group has seen some
                success across all elements of its strategy: exploration and
                appraisal, new field developments and asset trades.

                There was exploration and appraisal success in the UK, Norway
                and Brazil. The Howe discovery in the UK and the Svale and
                Skarv discoveries in Norway were successfully appraised during
                the period, and potential development options for these fields
                are currently being evaluated. In addition, the group's first
                well drilled in Brazil resulted in the Curio discovery on Block
                BC-2 and the group recently secured adjacent exploration
                acreage in the country's third licensing round. Despite these
                successes, some of our high risk wells drilled so far this year
                have been disappointing. However, the remainder of the year
                will see the completion of the Llano and Deep Mensa wells in
                the US and Rea-1 in Italy, as well as the drilling of several
                wells in Norway and one in Greece.

    Significant Work continues on the group's key operated projects, with
    progress on significant progress made during the first half of the year on
       operated both Corrib and Bijupira-Salema. Enterprise also became
    projects in operator of Llano in May, and is now co-ordinating appraisal
    Ireland and and field development study activities.
         Brazil
                2001 has also been a significant period for the group's
                non-operated projects, and in particular the Val d'Agri
                development in Italy. The new oil centre is now complete and by
                August was already processing over 20,000 barrels of oil
                equivalent per day (boepd), with work on the pipeline
                connecting the oil centre to the Taranto refinery and export
                facilities expected to be finished shortly. Output will also be
                enhanced as the Skene field in the UK comes on stream by the
                end of 2001 and Boomvang in the US achieves production in early
                2002. In the UK, the Clair field owners are moving that project
                forward, with it expected to see sanction in October, while in
                August the plan for the Valhall Flank development project was
                submitted to the Norwegian authorities.

                The group has continued to manage its portfolio actively, with
                the completion in August of the acquisition of the Petrobras UK
                assets and the disposal of Enterprise's Danish interests due to
                complete shortly. In addition, successful performances in
                licensing rounds in Brazil and Norway and lease sales in the US
                provide new opportunities for the group to create value from
                its portfolio.

                Production for the first half averaged 255,116 boepd, including
                associated production from the group's interest in KMOC. As a
                result of remedial work on Nelson's gas compressor, delayed
                work-overs to two wells on Pierce and increased water-cut on
                Jotun, it is anticipated that output for the year, including
                associated production, will average just below the 250-260,000
                boepd range published in March.

                Longer term, we remain committed to growing the value of the
                company, balancing short-term returns against longer term
                capital growth. In this context, we are targeting production
                growth of 5 per cent per annum from the company's record
                production levels in 2000. This target, which is one of
                management's key objectives, is viewed as challenging but
                achievable over a five-year timeframe. More than half of this
                production growth has already been identified in our existing
                portfolio; the balance will be achieved through exploration
                success, identifying further upside potential in our existing
                producing fields and developments and portfolio management.

                The rest of 2001 will be an important time for Enterprise, as
                the group further progresses its operated developments and
                maintains a busy exploration and appraisal programme, and I am
                confident that I will be able to report further successes in
                February.

                Dr Pierre Jungels

                Chief Executive

                *As a result of the adoption of the new deferred tax accounting
                standard published in December 2000, last year's accounts have
                been restated.



Financial Review
                                                First half      First half 2000
                                                      2001
                                               (Unaudited)          (Unaudited)
                                                                (Restated - see
                                                                         below)
                                                        £m                   £m
Turnover                                               804                  835
Operating profit                                       465                  477
Profit before tax                                      476                  457
Profit after tax                                       204                  162
Profit after tax excluding exceptional item*           204                  205
Operating cash flow after tax and financing            364                  503
costs
Average oil price                                   £18.54               £17.80

*the exceptional item related to the results for June 2000 (see note 3 to the
accounts).

The group has maintained its strong financial performance, despite a decline
in production levels, reflecting the sustained high sterling oil price
realisations and continued cost and capital discipline.

Return on average capital employed (RoACE) was 30.1 per cent on an annualised
basis compared with 28.7 per cent for the first half of 2000.

Profit before tax of £476 million has increased by £19 million compared with
the first half 2000 result. The effective tax rate in the first half of 2001
was 57 per cent (2000 first half 59 per cent, excluding the exceptional item).
Profit after tax was £204 million (2000 first half £162 million).

Basic earnings per share were 42.3 pence compared with 32.3 pence in the first
half 2000.

In the first half 2001, the group generated operating cash flow after tax and
financing of £364 million compared with £503 million in the first half of
2000. Net debt was £433 million at the end of the first half 2001 compared
with £579 million at the end of the first half 2000. Gearing was 34 per cent
at the end of the first half 2001 compared with 60 per cent at the end of the
first half 2000 and 39 per cent at the end of the full year 2000, as restated
(see below).

Restatement of prior periods

In December 2000 the Accounting Standards Board issued Financial Reporting
Standard (FRS) 19 'Deferred Tax' which has been adopted by the group for the
first time in the first half 2001. The impact of this standard is a move from
partial to full provisioning for deferred tax. The standard allows the
optional use of discounting for the calculation of future provisions; the
group has not used this option. The implementation of the standard has
resulted in a prior year adjustment, which has decreased shareholders' funds
and increased provisions of the group by £260 million at 1 January 2000.
Comparatives have been restated and consequently reserves have decreased and
provisions increased by £47 million for the six months ended 30 June 2000 and
£95 million for the year ended 31 December 2000, decreasing shareholders'
funds and increasing provisions at those dates by £307 million and £355
million respectively. The tax charges for the six months ended 30 June 2000
and for the year ended 31 December 2000 have increased by £34 million and £81
million respectively (see note 1 to the accounts).

Turnover

Turnover for the first six months of 2001 was £804 million, which represents a
4 per cent decrease compared with the same period in 2000. This decrease was
due to lower production levels, partially offset by higher sterling oil price
realisations. The average realised oil price for the period was £18.54
($26.79) per barrel of oil equivalent compared with £17.80 ($28.08) for the
first half of 2000.

Direct production in the first half of 2001 of 251,632 barrels of oil
equivalent per day (boepd) was 9 per cent lower than the same period last
year. This reduction is mainly due to a planned but extended shut down on the
Nelson field in the UK in June 2001, which allowed maintenance and
modification work to be carried out, and operational problems on the Pierce
field, also in the UK.

Operating profit

Cost of sales in the first six months of 2001 was £271 million. Cost of sales
for the same period in 2000 was £319 million including an exceptional charge
of £43 million. Excluding the exceptional item, cost of sales for the first
half of 2001 has decreased by 2 per cent compared with 2000.

On a per barrel basis, cost of sales in the first six months of 2001 was £5.94
(first half 2000 £5.47). Operating costs per barrel have increased by 14 per
cent compared with 2000, mainly in the UK where well maintenance work on
several fields, including Nelson, Miller and Pierce, was incurred.

Exploration and appraisal spend for the period was £71 million (£33 million
for the first half of 2000). Exploration and appraisal costs written off, as a
percentage of expenditure, were 65 per cent compared with 63 per cent in the
first half last year. First half 2001 administrative and selling expenses of £
25 million have increased by £6 million compared with 2000. The half year 2000
charge benefited from a £2 million release of a restructuring provision. The
remaining rise in administration costs reflects the increase in portfolio
management and other corporate activities across the group.

Operating profit for the first half of 2001 was £465 million compared with a
profit of £477 million in the first half of 2000.

Profit before tax

Profit before tax in the first half of 2001 was £476 million, an increase of £
19 million over the same period last year.

Net interest and similar income in the first six months of 2001 was £10
million compared with a charge of £22 million in the first half of 2000. This
includes foreign exchange gains of £15 million arising from the revaluing of
the Norwegian krone tax liabilities and other dollar denominated working
capital. Excluding foreign exchange gains, capitalised interest and unwinding
of discounts on long term provisions, the net interest charge for the first
half of 2001 was £29 million (first half 2000: £37 million). This decrease is
due to significantly lower net debt levels. Interest capitalisation has
increased by £12 million compared with the first half 2000, mainly due to the
inclusion in 2001 of the Boomvang development in the US Gulf of Mexico and the
Skarv gas development in Norway, together with higher spend in Italy on the
Monte Alpi and Cerro Falcone developments.

Taxation

The tax charge for the first six months of 2001 was £272 million (first half
2000: £295 million). The UK petroleum revenue tax ('PRT') charge was £36
million (2000: £52 million). The provision for PRT is calculated for each
discrete period based on average oil prices for those periods and the number
of barrels produced for each PRT paying field. In the first half of 2001
production from these fields, in particular the Nelson field, was lower than
in 2000, resulting in a lower tax charge. UK corporation tax was £71 million
in the first half of 2001 (first half 2000: £75 million).

The overseas tax charge for the first half 2001 is £164 million (first half
2000: £168 million).


The effective tax rate for the period was 57 per cent (first half 2000: 59 per
cent, excluding the exceptional item).

Profit after tax

The profit after tax in the first six months of 2001 was £204 million (first
half 2000: £162 million).

RoACE was 30.1 per cent on an annualised basis (first half 2000: 28.7 per
cent).
                                                       First half    First half
                                                             2001          2000
                                                      (Unaudited)   (Unaudited)
                                                                     (Restated)
Return on average capital employed (RoACE)                     £m            £m
calculation
Profit after taxation                                       203.9         161.7
Add back:
Interest                                                   (10.1)          22.4
Depreciation of capitalised interest                         12.6          14.4
                                                            206.4         198.5

Average capital employed: shareholders' funds, plus
net debt
And excluding capitalised interest                        1,369.7       1,384.5
RoACE calculation on an annualised basis                    30.1%         28.7%

Capital expenditure

Capital expenditure, including capitalised interest and acquisitions, was £280
million in the first half of 2001 (first half 2000: £256 million). Production
and development expenditure, including capitalised interest but excluding
acquisitions, was £206 million (first half 2000: £133 million). This increase
is mainly due to the development since the first half 2000 of the Skarv field
in Norway and the Boomvang field in the US Gulf of Mexico. Exploration and
appraisal expenditure was £71 million for the first half 2001 (first half
2000: £33 million). Drilling activity in the US Gulf of Mexico, Ireland and
Brazil in the first half of 2001 has resulted in higher expenditure compared
with the first half of 2000, which saw a relatively low level of drilling
activity compared with the second half of that year and the first half of
2001.

Second half exploration and appraisal expenditure in 2001 is expected to be
higher than the first half at approximately £84 million, with planned drilling
activities in the US Gulf of Mexico, the UK, Greece, Norway and Italy.
Production and development expenditure for the full year, including
capitalised interest but excluding acquisitions, is expected to be slightly
over £500 million.

Cash flow and financing

Operating cash flow after tax and financing costs was £364 million compared
with £503 million in the first half of 2000. This anticipated decrease
reflects the significantly higher cash taxes paid in the first half 2001,
mainly in Norway. The second installment of the Norwegian tax liability for
2000 was paid in the first half of 2001, representing the balance of the 2000
liability, based on high oil prices in the second half of 2000. The second
installment of the 1999 liability, paid in the first half of 2000, was based
on much lower 1999 earnings in Norway. The UK corporation tax payment dates
are currently in a transition period. The first half 2001 payment represents
the major part of the 2000 tax liability.

Interest cover for finance costs was 13 times, compared with 17 times for the
first half 2000. This decrease also reflects the high level of tax payments in
the first half 2001 compared with the first half 2000.

Net cash payments on capital items of £237 million increased by £100 million
compared with the first half of 2000 due to the increase in the number of
exploration and development projects. Net debt at the end of June 2001 was £
433 million compared with £579 million at the end of June 2000. Gearing was 34
per cent compared with 60 per cent at the end of June 2000, as restated. The
impact of the application of FRS19 as a prior year adjustment, referred to
above, was to increase gearing at the end of June 2000 by 15 percentage
points.

The group had available funds, including committed facilities, of £1.2 billion
at 30 June 2001. The group's credit ratings from Standard and Poor's and
Moody's are unchanged at BBB+ and Baa1 respectively.

At the March 2001 Board meeting the directors approved a share repurchase
programme pursuant to the authority granted by shareholders at the 2000 AGM.
During the three and a half months to 30 June 2001, 6.7 million ordinary
shares of 25p each were purchased and then cancelled. The nominal value of the
shares that were cancelled was £1.7 million. The repurchase prices ranged from
548.8p to 618.76p, resulting in £38.4 million being returned to shareholders
at 30 June 2001. To date a total of £47.9 million has been repaid to
shareholders at 5 September 2001.



Operational Review

A solid performance During the first half of the year total production
    positioning the including associated output averaged 255,116 boepd (2000:
group for long term 277,056 boepd).
             growth
                    Enterprise has performed solidly in all its key
                    geographical areas and has seen operational success
                    throughout its core businesses laying the foundation for
                    future growth.

                    The first six months of 2001 have seen the following
                    operational highlights:
UK
       The group is The first half of the year saw the announcement of the
      accessing new group's acquisition of Petrobras UK Limited which was
   opportunities to completed in August 2001. This acquisition provides the
      build for the group with assets including fields in production, potential
future in the North developments and exploration acreage. In particular the
                Sea assets include eight potential developments of which four
                    are operated. This acquisition has strengthened the group's
                    ability to unlock value from undeveloped discoveries.

                    Production from the 21 fields in the UK North Sea averaged
                    139,500 boepd in the first half of the year. The group's
                    operated UK fields, Nelson, Pierce and Cook, produced 43
                    per cent of the group's UK production in this period.

                    The Nelson field is now producing at rates of 80,000 boepd
                    following an extensive planned production shutdown, which
                    was extended by the need to rework an incorrectly assembled
                    compressor.

                    In late August, an infill drilling programme of up to six
                    wells commenced on the Nelson field, and it is expected
                    that this will give a significant boost to the field's
                    production rates in 2002.

                    Pierce is currently producing at rates of 38,000 boepd.
                    Production is expected to increase further following
                    completion of the work-over programme on the field.

                    The Cook field continues to produce steadily, at rates of
                    up to 24,000 boepd, and has now produced in excess of seven
                    million boe. The Conoco-operated Banff field re-commenced
                    production in March 2001 and is producing consistently at
                    rates of up to 28,000 boepd following the upgrades to the
                    Floating Production Storage and Offtake vessel (FPSO) and
                    the installation of a storage tanker.

                    Activity on the Skene development has progressed with the
                    project moving towards first gas by the end of 2001. The
                    field is being developed as a sub-sea tieback to the Beryl
                    Alpha platform. At peak the Skene field is expected to
                    produce approximately 180 million cubic feet of gas and
                    25,000 barrels of associated liquids per day. The Maclure
                    development is expected to receive project sanction in
                    September 2001. First production is anticipated in the
                    second half of 2002.

                    The Clair field in the West of Shetlands area was
                    discovered in 1977 and is the largest undeveloped field in
                    the UK. The field is heading towards project sanction
                    expected by the end of the year. The export route for oil
                    will be through a pipeline to the Sullom Voe terminal and
                    work is nearing completion on the front-end engineering and
                    design phase of the project.

                    Exploration and appraisal activity in the UK during the
                    first half of the year included the drilling of four wells.
                    The Howe appraisal well, close to our Nelson field, was
                    suspended as a potential producing well in February 2001
                    and possible development options for the field are being
                    evaluated. Enterprise has also participated in the first
                    well to be drilled on the Faroese continental shelf which
                    whilst not a discovery has yielded valuable information on
                    the potential of the area.
Ireland

A major gas project The Corrib development continues to gather momentum with
      on course for significant progress made in the first six months of the
Enterprise, and for year. The development is expected to ensure an indigenous
            Ireland gas supply in Ireland for at least 15 years.

                    In February, Enterprise and its co-venturers announced
                    project sanction for the development, which will comprise
                    the construction of an offshore pipeline connecting subsea
                    facilities to an onshore terminal in the West of Ireland.

                    In June another step in the project was taken with the
                    award of three major contracts for both the on and offshore
                    elements of the development. The contracts cover the subsea
                    equipment and installation, and the construction of the
                    onshore terminal. The value of these contracts covers a
                    significant part of the total project costs, and the award
                    is a milestone in the project's schedule.

                    The group has engaged in extensive consultation with local
                    communities and stakeholders in the region. Following this
                    process, planning permission for the terminal (subject to
                    an appeal to be heard later this year) was granted in
                    August 2001 by Mayo County Council. In addition, agreement
                    is in place for the sale of 60 per cent of the group's
                    Corrib gas to Bord Gas Eireann, and the group is discussing
                    the sale of the rest of its share of the gas with other
                    potential customers.

Norway and Denmark

     Developing new The group's operations in Norway have been boosted by
  relationships and appraisal success and licence round awards.
       alliances to
       strengthen a In the first six months of the year Norwegian and Danish
   dynamic business production averaged 105,600 boepd from 10 fields. The Jotun
                    field, which produced significantly higher rates than
                    planned during 2000, has come off plateau and is now
                    producing more water than forecast as it matures, resulting
                    in declining oil production levels.

                    The Skarv discovery was successfully appraised confirming
                    additional reserves. The Svale discovery was appraised in
                    May and development options for both fields are being
                    considered.

                    The fabrication of the Valhall Water Injection Platform
                    began in April 2001 and was 25 per cent complete by the
                    middle of the year. Work is on schedule for first water
                    injection early in 2003. The Valhall Flank development
                    project has received the approval of the field owners, and
                    the group has submitted plans for government approval. This
                    project will enable the group to access further reserves
                    and accelerate production from the Valhall field.

                    In April the group celebrated its most successful
                    performance in a Norwegian licensing round to date, when it
                    gained three awards including its first operatorship in
                    Norway. As a part of the preparation for future licensing
                    rounds, Enterprise has entered into area of mutual interest
                    (AMI) agreements with major companies active in the
                    Norwegian Continental Shelf, and in particular those active
                    in natural gas production such as Shell and Statoil. Under
                    these agreements Enterprise and the other parties will
                    consider joint participation in future licensing rounds and
                    other opportunities to acquire interests offshore Norway.

                    In August the group disposed of its non-core Danish
                    interests through the sale of its subsidiary Enterprise Oil
                    Denmark Ltd for $35 million to Paladin Resources. The sale
                    is expected to be completed in September.
Italy

  Time and patience 2001 is an exciting year for the group's Italian operations
 in Italy have paid with the start of phase one production from the Val d'Agri
          dividends project. Gross production from this phase of the project
                    doubled in August to 20,000 boepd following commissioning
                    of the new facilities at the oil centre. The group's
                    Italian production during the first half averaged 4,100
                    boepd.

                    The first half of the year has seen the conclusion of
                    construction of the Val d'Agri oil centre, with production
                    expected to increase significantly in late 2001. The
                    group's target is that the oil centre will eventually
                    process 120,000 boepd at full capacity. The Tempa Rossa
                    field in which the group has a 25 per cent interest may
                    achieve project sanction later in 2001, and has the
                    potential to increase the production flowing through the
                    pipeline to around 150,000 boepd in 2005.

                    Work on the pipeline connecting the oil centre at Viggiano
                    to the refinery at Taranto is nearing completion. It is
                    anticipated that the pipeline will be commissioned in
                    October 2001. The oil from the Val d'Agri fields will be
                    delivered to the oil centre for separation and processing
                    and then through the pipeline onwards to the refinery and
                    the export facilities. Drilling of the development wells on
                    Monte Alpi and Cerro Falcone and an exploration well in the
                    Po Valley continues.

US Gulf of Mexico

    Building a core The US Gulf of Mexico is developing towards core area
area with diversity status within Enterprise's portfolio, with the group's
                    regional assets now including producing fields, development
                    projects and exploration acreage, providing exposure to all
                    aspects of the business cycle. The first half of 2001 has
                    been important for business activities in the US.

                    Gross production from the Gyrfalcon and Garden Banks 161
                    fields averaged 2,500 boepd during the first half of 2001.

                    In May Enterprise took over operatorship of the Llano field
                    from EEX and the group is now focusing on the forward work
                    programme for the field. This includes the drilling of a
                    third appraisal well which is currently underway. The
                    results of this well together with data acquired from
                    previous wells will help determine the best development
                    option for the field. A Llano project team has been formed
                    in Houston.

                    The Boomvang development is on course to achieve first
                    production in early 2002. The first half of the year has
                    already seen the construction of the SPAR platform hull in
                    Finland. The hull will be delivered to the US Gulf towards
                    the end of the year, with topsides scheduled for delivery
                    in late 2001. During the first half of the year six
                    development wells were drilled on the field, three of which
                    will be completed ahead of the installation and hook-up of
                    the SPAR platform in early 2002. Gross production from this
                    field is anticipated to reach a peak of 25,000 barrels of
                    oil and 150 million standard cubic feet of gas per day in
                    2003.

                    The group has gained access to several high quality
                    exploration opportunities in the first half 2001. This
                    follows a strategy of pursuing selective exploration
                    prospects where Enterprise can identify significant
                    potential. The Shell operated Deep Mensa well, which
                    Enterprise has farmed into and is currently drilling, is an
                    example of such an opportunity. The group intends to
                    continue to build up its acreage in areas in which it
                    maintains a strategic position such as the Boomvang area
                    where it recently added 10 blocks in the August lease
                    sales.

Brazil

 On fast forward to The group's growth in Brazil is an illustration of the
       a strong new dynamism of Enterprise's business culture. In the first
           business half of 2001 the group has strengthened its position as a
                    leading player in the recently deregulated oil and gas
                    industry.

                    Enterprise farmed into the Bijupira-Salema field
                    development in March 2000 as operator and has since then
                    driven the project on a rapid development schedule. In the
                    first six months of 2001 contracts for the provision of the
                    FPSO and subsea equipment were awarded to FMC Modec.

                    The development was sanctioned by the Brazilian licensing
                    authority, the ANP, in June 2001 and development drilling
                    is expected to begin in September. A total of 16 wells are
                    planned to be drilled over the next two years. The fields
                    are expected to begin producing in the second half 2003 at
                    rates of up to 70,000 boepd.

                    In the first half of the year the group also secured its
                    first operated block and three non-operated blocks in
                    Brazil's third oil and gas licensing round. The awards
                    provide access to future exploration opportunities in two
                    new deep-water basins offshore Brazil. The first well
                    drilled by the group in Brazil resulted in the Curio
                    discovery in Block BC-2 in January.

New Ventures

  Doing business in Enterprise is broadening its international presence with
     different ways interests in a number of new venture areas in which the
                    group seeks to find new ways of creating value for its
                    shareholders.

                    KMOC

                    The group's involvement with the Khanty Mansisyk Oil
                    Corporation (KMOC) has continued during 2001. KMOC's
                    operations programme for 2001 has progressed well with 18
                    new wells completed in the first half. Gross production for
                    this period averaged over 12,800 boepd of which over 11,100
                    boepd came from KMOC's operated fields, an increase of
                    approximately 60 per cent from the first half of 2000.
                    Following the completion of a new direct tie-in from the
                    Potanay field to the Transneft export pipeline, operated
                    production in June averaged over 14,600 boepd. As a result
                    of its 27 per cent (18.6 per cent fully diluted)
                    shareholding in KMOC, Enterprise has reported 3,484 boepd
                    as associated production for the first half of 2001.

                    Iran

                    The group continued to evaluate investment in Phases 6, 7
                    and 8 of the South Pars gas development in Iran. An
                    appraisal well, managed by Enterprise,was spudded in late
                    July. The basic facilities design work is nearing
                    completion and detailed discussions about commercial,
                    financing and project management arrangements are
                    progressing. The final investment decision will depend upon
                    satisfactory resolution of these discussions.

                    Morocco

                    Enterprise has been pursuing opportunities in Morocco
                    during 2001 and has acquired interests in two additional
                    onshore reconnaissance licences in the Azila Ouezzane and
                    Tissa areas. The group also holds an offshore exploration
                    licence over the Cap Draa Haute Mer area. The first half of
                    2001 saw the acquisition of 1,800 square kilometres of 3D
                    seismic in this permit with a further 2,000 square
                    kilometres due to be acquired in 2002.

                    Greece

                    During the first half of the year the North West
                    Peloponnesos licence was relinquished following the two
                    wells drilled in 2000. Drilling in the Ioannina area will
                    commence in September with the Demetra 1 well. This deep
                    onshore well is expected to take three to four months to
                    complete.

MORE TO FOLLOW