SNC-Lavalin-Al-Hassan Joint Venture Awarded Oman Gas Plant Contract

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June 23, 2002

A joint venture between SNC-Lavalin and Al-Hassan Engineering Co. S.A.O.G., of Ruwi, Sultanate of Oman has been awarded a contract by Petroleum Development Oman L.L.C. for the turnkey design and construction and first year of operational support of the Saih Nihayda Gas Plant (SNGP) in Oman. The fixed price contract signed today is valued at approximately US $115 million. The project will be managed by SNC-Lavalin’s Calgary-based Chemicals, Petroleum & Industrial Business Unit over a three-year period.

The contract includes the design, supply and installation of a 20 million sm3/day (standard temperature measurement) gas treatment plant and associated gas gathering facilities for the Expansion Phase 1 gas development project in central Oman. The plant will also produce 10,000 sm3/day of condensate, a light petroleum oil used in feed stock, and 1,000 m3/day of water. The gas produced will be delivered into an existing gas export pipeline to the Sharqiya region, ultimately supplying the existing liquefied natural gas plant at Qalhat near Sur.

“The SNGP project reinforces SNC-Lavalin’s well established presence in the Middle East, principally in Saudi Arabia, by expanding our oil and gas activities into other important markets in the region,” said Krish Krishnamoorthy, Executive Vice-President, SNC-Lavalin.

Today’s announcement reflects a new phase in SNC-Lavalin’s strategy to actively pursue projects in the growing gas processing field following its acquisition last year of Calgary-based Titan Projects Ltd., a recognized world leader in gas processing and heavy oil production.

“Our combined pool of expertise in the field was clearly a key factor in winning this contract,” said John Hutchison, Vice-President, Business Development for SNC-Lavalin’s Chemicals, Petroleum & Industrial Business Unit. “We are very pleased with this opportunity to participate in Oman’s rapidly developing oil and gas sector.”

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