JGC / KBR / Technip JV Awarded FEED Services Contract for Angola LNG Project

Source: www.gulfoilandgas.com 5/15/2005, Location: Africa

A joint venture of JGC Corporation, KBR, the engineering and construction subsidiary of Halliburton, and Technip USA, has been awarded a Front End Engineering and Design (FEED) contract for the Angola LNG Project, to be constructed near Soyo in Northern Angola, approximately 300 kilometers north of Luanda. The five million tons per year LNG facility will be operated by a new company to be formed by Sonangol (the Angola national oil company), ChevronTexaco, BP, ExxonMobil and Total.

Angola is known as a natural gas and crude oil producing country. Under the current circumstances, however, considerable quantities of associated gas produced during crude oil extraction are flared into the atmosphere. The Angola LNG Project will be the first large-scale onshore gas project in Angola, and encompass offshore and onshore operations to monetize significant gas resources from fields located offshore Angola. The planning is for the Angola LNG Project to facilitate the development of offshore hydrocarbon resources while reducing gas flaring. Natural gas will be collected and transported from offshore production facilities to the LNG plant near Soyo.

The JGC-KBR-Technip joint venture is convinced that it was selected for this project based on the three companies' successful track record of developing LNG facilities, with the intention being that the project will lead to long-term benefits for the development of Angola.

During the next 12 months, the JGC-KBR-Technip joint venture will participate in a design competition. This competition is expected to result in the selection of one contractor group to perform the engineering, procurement and construction (EPC), as well as start-up and commissioning services, once a final investment decision (FID) for the project is made.

With Angola positioned as a potential market, JGC will continue to promote its FEED and EPC services through effective sales activities for this Angola LNG Project, as well as for other gas-related projects planned for the future.

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