Chiyoda Secured LNG Train EPC Contract in Oman

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January 15, 2003

Chiyoda Corporation, the leading engineering and construction company in Japan, today announced that Chiyoda-Foster Wheeler and Company LLC has been awarded a contract by the Government of the Sultanate of Oman represented by the Ministry of Oil and Gas for the detailed engineering, procurement and construction (EPC) of a liquefied natural gas (LNG) train at Qalhat, near Sur, the Sultanate of Oman. The contract includes construction of additional LNG storage facilities as an option.

Currently, the formation of a new joint venture is underway with the Oman Government, Oman LNG LLC and Union Fenosa S.A. being shareholders and the EPC contract is supposed to be transferred to the new joint venture in due course.

The new LNG train will be built adjacent to the existing Oman LNG Complex at Qalhat, where two identical LNG trains, each with a capacity of 3.3 million tons per year, have been operating since early 2000. During the completion of the existing two trains for Oman LNG LLC, Chiyoda-Foster Wheeler achieved the highest quality and an outstanding safety record while performing within budget and on a fast project schedule.

Through the excellent performance in the EPC for the existing plants, as well as the Project Specification Work for the new LNG train, Chiyoda-Foster Wheeler demonstrated its expertise as a reliable and competent engineering contractor and earned the confidence of Shell Global Solutions International B.V. which has been involved in the Oman LNG project as Technical Advisor from the outset.

The new LNG train is aiming for an improved production capacity and is expected to be on stream by the end of 2005. Chiyoda's rich experience and proven performance, in fast track base-load LNG projects worldwide, lends itself to meeting the challenging delivery schedule, that will enable the new joint venture to begin LNG supply to Union Fenosa in early 2006.


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