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Bechtel Wins FEED Contract for Brass LNG Project

Source: www.gulfoilandgas.com 11/15/2004, Location: Africa

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Brass LNG Limited has awarded the contract for the Front End Engineering and Design (FEED) of its liquefied natural gas plant to the San Francisco based Overseas Bechtel Incorporated. It is envisaged that the LNG plant will be sited in Brass, Bayelsa State.

The contract signing, which took place yesterday in Houston, Texas, was witnessed by top members of management of the company as well as representatives of its shareholders. Mr. Martin Hutchison, Managing Director of Brass LNG Limited signed on behalf the company, while Mr. Jim Jackson, Senior Vice President of Bechtel signed on behalf of the engineering firm.

Speaking at the ceremony, Mr. Hutchison said that the FEED will be completed within the 12-month period scheduled for the execution of the contract. He emphasized that the contract contains a provision for a Nigerian engineering firm - National Engineering and Technical Company Limited, (a subsidiary of NNPC) - to participate in the execution of the FEED contract.

Mr. Jackson expressed thanks to Brass LNG management and shareholders for selecting Bechtel for this very important assignment and provided Bechtel's commitment to executing the contract.

This contract award follows the Heads of Agreement (HOA) signed October 2003 by the shareholders of Brass LNG Limited for the development of the two-train liquefied natural gas facility. The award of the FEED contract has put the project on track towards completion by the second half of 2009.

Bechtel had earlier carried out conceptual studies for the project, which assessed the viability of an onshore LNG facility to be built near the Brass oil terminal operated by Nigerian Agip Oil Company (NAOC).

Successful execution of the FEED studies will pave way for the Engineering, Procurement and Construction (EPC) stage of the project, which is expected to commence in the third quarter of 2006.

With this contract award, Brass LNG Limited has moved a step further towards its shareholders’ objective of joining other stakeholders to monetize Nigeria’s vast natural gas resources and to contribute to gas flare down as well as meeting the growing worldwide demand for clean energy.

Brass LNG Limited is a company incorporated under the laws of the Federal Republic of Nigeria, with Nigerian National Petroleum Corporation, ChevronTexaco, ConocoPhillips and ENI International N.A.N.V. S.ar.l as shareholders.

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