November 14,
2002

Mr. Phil
IracaneOcean Energy, Inc.1001 Fannin, Suite 1600Houston, TX  77002-6794

RE: Amendment
to Natural Gas Purchase and Sale Agreement

The
parties hereby agree to amend the subject Natural Gas Purchase and Sale
Agreement between Duke Energy Trading and Marketing, L.L.C. (DETM)
or (Buyer) and Ocean Energy, Inc. (Ocean) dated October
1, 2001 (the Agreement) as follows:

1.   Article VIII shall be amended by the addition of the following language to the end of Article VIII:

| | In
addition to the foregoing, if the credit rating of Buyer is reduced below  investment
grade as determined by Standard and Poors, within five (5)  business days of a
demand from Ocean, Buyer shall supply to Ocean an  irrevocable, unconditional letter of
credit (in a form satisfactory to Ocean)  (the Letter of Credit) issued by a
national financial institution  having an office in the United States and whose credit
rating is at least  A- by Standard and Poors and at least A3 by
Moodys, in favor of Ocean in an amount equal to one hundred percent (100%) of  the
estimated payables for 60 days of flow under the Agreement. It is agreed  that the amount
of such Letter of Credit shall be determined by Ocean in its  sole discretion.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Should
Buyer be required to provide the Letter of Credit above, such Letter of Credit  shall
remain in force and effect until (i) Ocean is satisfied Buyer is fully  capable of
performing its obligations under the Agreement which determination  shall be made in Oceans
sole discretion, or (ii) the termination of the  Agreement and fulfillment of all
obligations thereunder by Buyer.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Parties acknowledge and agree that were it not for Buyers agreement to  supply
Ocean with such Letter of Credit as provided in this Amendment, Ocean  would exercise its
right to terminate the Agreement. In the event Ocean draws on  such Letter of Credit,
Buyer agrees to supply a replacement Letter of Credit  (within five (5) business days)
and will continue to provide additional Letters  of Credit in the manner specified herein
within such time period.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Parties agree that if Buyer fails to provide a Letter of Credit as provided  herein, the
Agreement will be immediately terminated.
| | --------------------------------------------------------------------------------------------------------------------------------------

| | In
order to secure its obligations hereunder, Buyer grants a security interest to  Ocean in
Oceans Gas being purchased hereunder. In accordance with this  provision, Ocean is
filing a Financing Statement with the Secretary of State of  the State of Delaware.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | To the
extent this Amendment conflicts in any manner with the Agreement, the Parties
agree that this Amendment shall control.
| | -----------------------------------------------------------------------------------------------------------------------------

| | Except
as amended herein, the Agreement remains in full force and effect.
| | --------------------------------------------------------------------------

All
capitalized terms used herein shall have the same meaning given them in the
Agreement.

Please
sign in the space provided below and return one original to DETM as soon as
possible.

We
thank you for your continued business.

_________________

Tim  McCabeSr. Director,
East Gas Origination

Agreed  to and
accepted this 22nd day of November, 2002.

_________________

Ocean Energy,
Inc.