line basis over the term of the lease.
(o) Capitalisation of borrowing costs
Borrowing costs, including interest, finance
charges and foreign currency exchange
gains and losses relating to major plant and
equipment projects under development and
construction up to the date of
commencement of commercial operations,
are capitalised and amortised over the
expected useful lives of the facilities. Where
funds are borrowed specifically for
qualifying projects the actual borrowing
costs incurred are capitalised. Where the
projects are funded through general
borrowings the borrowing costs are
capitalised based on the weighted average
borrowing rate, which for the year ended
31 December 2004 was 5.09%
(2003: 4.91%).
Borrowing costs incurred in respect of
completed projects are expensed.
(p) Deferred income
A liability is recorded for obligations under
sales contracts to deliver natural gas in
future periods for which payment has
already been received.
(q) Depreciation and depletion
Depreciation charges are calculated to
write-off the carrying value of buildings,
plant and equipment over their estimated
useful lives to the entity. Depreciation of
onshore buildings, plant and equipment
assets is calculated using the straight line
method of depreciation. The estimated
useful lives to the entity will vary for each
asset depending on projected average rate 
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