SNC-Lavalin Awarded Contract At Vankor Oilfield Development In Siberia

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July 27, 2006

SNC-Lavalin UK Limited has been awarded a contract by NK Rosneft - NTC, an affiliate of OAO Rosneft, to carry out detailed engineering for its central processing facility at the Vankor oilfield development project in Siberia.

"We are delighted to have been selected by Rosneft to undertake one of its most important projects," said Tony Allen, Senior Vice-President and General Manager, SNC-Lavalin UK Limited. "During execution we shall be working closely with a number of Russian companies."

The project site is in the northern part of the Krasnoyarsk Territory, which has little infrastructure and severe environmental conditions, including permafrost, swamps, and winter temperatures falling below 50 degrees.

"We are pleased to be selected for this landmark development in Russia, where our design expertise in remote and harsh climates will be called into play," said Jean Beaudoin, Executive Vice-President, SNC-Lavalin Group Inc. "SNC-Lavalin has a proven track record in meeting the kind of unique challenges that this type of project presents."

"Our selection of SNC-Lavalin is a logical step in pursuing our strategy of attracting the best service companies worldwide for our key projects. I am certain that the combination of SNC-Lavalin's unique experience in carrying out projects in northern territories will assist us in the Vankor field’s successful development," said Sergey Kudryashov, First Vice-President at Rosneft.

Work on the project will start immediately and will be carried out in the UK, Moscow and Krasnoyarsk. The facility is scheduled to be operational in 2008.


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