TSKJ partners awarded EPC contract for further expansion of Nigerian plant
NLNG Plus will add two trains to Bonny Island operation
Paris, France - TECHNIP/COFLEXIP (NYSE Ticker: TKP and Euronext: 13170) announced today that Nigeria LNG Limited has awarded the engineering, procurement and construction (EPC) contract for the realisation of the trains 4 and 5 expansion project, or "NLNGPlus Project", at its existing $3.8 billion liquefied natural gas facility to the joint venture team of Technip-Coflexip, Snamprogetti, Halliburton KBR and JGC Corporation, known as TSKJ. The EPC contract to TSKJ is valued at over 1.7 billion US dollars.
When the NLNGPlus project is completed in July 2005, the plant will have an overall production capacity of 16.8 million tons per year of LNG and two million tonnes per year of liquefied petroleum gas. It will also utilize about 2,800 million standard cubic feet per day of gas.
Each of the two new trains and associated facilities will be able to process 4.0 million tonnes per year of LNG. The expansion also is intended to increase the capability of the complex to process associated gas feedstock, enabling a major reduction in gas flaring in Nigeria. In addition to the environmental benefits, the NLNGPlus expansion project is expected to increase significantly export earnings for Nigeria and further establish NLNG as one of the major players in the global natural gas industry.
TSKJ has also provided NLNG with a price for an additional LNG train (Train 6), which will further expand the LNG capacity to 20.8 million tons per year.
TSKJ was awarded the EPC contract for Trains 1 & 2 and the necessary site infrastructure in December 1995. Trains 1 & 2 started up in August 1999 and February 2000. Train 3 with LPG recovery facilities was awarded to TSKJ in March 1999. Construction of Train 3 is well under way and is expected to start up on schedule in 2002.
In early 2001, TSKJ successfully won the Project Specification for the NLNGPlus Project in an international competitive tender process. This work was completed in November 2001.
NLNG shareholders are Nigerian National Petroleum Company (49%) and subsidiaries of Royal Dutch/Shell (25.6%), TotalFinaElf (15%) and Agip (10.4%).
With a workforce of about 18,000 and annual revenues of about 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, 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. Technip-Coflexip's web-site is accessible at: http://www.technip-coflexip.com
Snamprogetti, a company of the ENI Group, is an international technology-orientated engineering and main contracting company, active in the fields of oil and gas processing production, refining, natural gas treatment and monetization, fertilizer and petrochemical plants, onshore and offshore pipeline systems, infrastructure, power and environment plants. Based in San Donato Milanese, Milan, Snamprogetti has major subsidiaries in Italy and in the United Kingdom as well as several offices worldwide. Staffed by 3,300 employees, the company has had an average turnover of over 1,500 million US dollar in the last five years. Snamprogetti's website can be accessed at http://www.snamprogetti.it.
Halliburton KBR, a business unit of Halliburton Company (NYSE: HAL), is an international, technology-based engineering and construction company which provides a full spectrum of industry-leading services for governments, public infrastructure and to the hydrocarbon, chemical, energy, and forest products industries. Halliburton Company, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company's World Wide Web site can be accessed at http://www.halliburton.com
JGC is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large-scale projects worldwide. JGC is currently executing projects in Nigeria, Algeria, Saudi Arabia, Malaysia, Australia, Venezuela and other countries. Established in 1928, JGC has a strong background in lump sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects with annual sales turnover of approximately $3 billion. JGC's website can be accessed at http://www.jgc.co.jp.
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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