Chevron Nigeria and NNPC Award KBR Snamprogetti JGC Joint Venture EPC Contract

    April 8, 2005

The joint venture team of KBR, the engineering and construction subsidiary of Halliburton…

…Snamprogetti, the engineering and main contracting company of Italy’s Eni, and JGC of Japan has been awarded the engineering, procurement and construction (EPC) contract for the Chevron Nigeria Limited (CNL)/Nigeria National Petroleum Corporation (NNPC) gas to liquids (GTL) facility in Escravos, Nigeria. The Escravos site is located approximately 100 kilometers southeast of Lagos. NNPC holds 25 percent equity in the Escravos plant with CNL, a wholly-owned subsidiary of ChevronTexaco, holding the remaining 75 percent.

The Escravos facility will use a leading application of GTL technology; Sasol’s state of the art Sasol Slurry Phase Distillate (SPD) process which consists of Haldor Topsoe’s proprietary Autothermal reforming, Sasol’s proprietary Fischer-Tropsch technology and ChevronTexaco’s proprietary ISOCRACKING process.

The Escravos GTL facility will provide significant environmental benefits by converting natural gas to produce ultra clean GTL diesel. The plant will have an output of 34,000 barrels per day of GTL diesel, naphtha and liquefied petroleum gas for export. The completion of the Escravos plant will add Nigeria to the list of countries leading the industry in implementation of GTL production facilities.

“This is KBR’s first EPC project for a GTL facility, and we look forward to bringing our world-class engineering, procurement and construction expertise to a technology that could create an entire paradigm shift throughout the petroleum industry,” said Andy Lane, COO of Halliburton. “In addition, we believe the award of this Escravos GTL project is a significant step in building a long-term relationship with ChevronTexaco and continuing KBR’s long history of successfully constructing major projects in Nigeria and providing sustainable employment.”

The EPC contract is valued at $1.7 billion. The KBR/Snamprogetti/JGC joint venture’s Project Directorate will be located in KBR’s offices in Houston, Texas.

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