Contract award for two petrochemical plants in China
Technip-Coflexip (NYSE: TKP and Euronext: 13170), in association with Sinopec Shanghai Engineering Company (SSEC), has been awarded by Shanghai Secco Petrochemical Company (SECCO), a lump sum turnkey contract worth about US $205 million for the design and construction of two polyethylene plants at Caojing, near Shanghai, in China.
SECCO is a 50/50 joint venture company between Sinopec and BP.
Each plant will produce 300,000 tons per year of Linear Low Density Polyethylene (LLDPE) and will use BP’s gas phase technology Innovene.
This project is part of the Caojing petrochemical complex currently being developed by the joint venture company made up of BP, Sinopec and Shanghai Petrochemical Corporation, which represents one of the largest-ever foreign investments in China.
Technip-Coflexip has already completed the Front End Engineering Design and will carry out, in association with SSEC, the detailed engineering, equipment supply, construction and precommissioning. The plants are scheduled to be delivered “ready for start-up” at the end of February 2005.
This project is a further step in the long-term collaboration between BP and Technip-Coflexip in the polyolefins business. It also strengthens Technip-Coflexip’s position as a leader in the polyethylene sector, for which it has designed and built 14% of the world’s production capacities.
Technip-Coflexip has been working in China for 30 years, particularly in the petrochemical, fertilizers and chemical sectors. Altogether Technip-Coflexip has designed and built about 100 units on 50 different industrial sites including a gigantic petrochemical complex in LiaoYang (22 process units) and a wide range of individual units of ethylene, propylene, aromatics, intermediate products, polymers, ammonia, urea and fertilizers. Technip-Coflexip is present in China through its affiliate Technip Tianchen, an engineering and construction firm created in 1997 in partnership with a Chinese chemical engineering company. Technip Tianchen is based in Tianchen and Shanghai.
With a workforce of about 18,000, Technip-Coflexip ranks among the top five in the field of oil, gas 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, Finland, 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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