Coming into force of the contract for the ethane cracker of the 9th Olefin Complex in Iran
The contract awarded to TECHNIP and NARGAN by the National Petrochemical Company of Iran (NPC) for the design and construction of its ethane cracker in the 9th Olefin Complex has just become effective.
This project, worth in excess of 200 million euros, involves the supply of a one million-ton-a-year ethylene steam cracker to be built in the 9th petrochemical complex at Asaluyeh, Iran, on the northern coast of the Persian Gulf.
According to this contract, TECHNIP will provide its proprietary technologies, furnaces and processes for the production of ethylene and, with its partner NARGAN, will carry out basic and detail engineering, procurement and supply of equipment and materials, supervision during construction and commissioning and start-up as well as training services.
These services will be performed by the engineering centres of TECHNIP in Rome, Paris and The Hague, and the Iranian company NARGAN, which will execute detail engineering and procurement of materials of local origin.
The effectiveness of the contract (signed in September 2000) was subject to the setting up of a multi-source financing scheme which has been finalized this week. Meanwhile, thanks to an "early start system" based on cash payments, TECHNIP has completed the basic engineering of the project.
Financing of the project is based on export credit facilities from Italy, France and The Netherlands.
The completion of delivery is scheduled for July 2003.
This project underlines Technip-Coflexip's world leading position in mega-crackers and associated technologies. Technip has also been awarded this year a contract for the ethylene cracker of the 10th complex at Asaluyeh, which will deliver the largest output of ethylene to date in the world (1.4 million tons/year). The coming into force of this contract is expected during the first half of 2002.
With a workforce of about 18,000 and annual pro-forma revenues of nearly 4.5 billion euros, TECHNIP-COFLEXIP ranks among the top five in the field of oil and petrochemical engineering, construction and services. Headquartered in Paris, the Group is listed in New York (NYSE: TKP) and in Paris (EURONEXT: 13170). The main engineering and business centers of TECHNIP-COFLEXIP are located in France, Italy, Germany, the UK, Norway, the Netherlands, the United States, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, and Finland as well as a world-class fleet of offshore construction vessels.
Statements in this news release other than historical financial information are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as capital expenditures in the oil and gas industry, the timing of development of offshore energy resources, materialization of construction risks, the strength of competition, interest rate movements and stability in developing countries.
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