QP, Sasol Chevron Announce US$6 Billion Blueprint to Boost GTL

Doha, March 23, 2004 - Qatar Petroleum (QP) and Sasol Chevron today announced plans to evaluate the expansion of ORYX GTL from 34,000 bbl/day to 100,000 bbl/day.

QP and Sasol Chevron have signed a Memorandum of Understanding (MOU) for the ORYX GTL Expansion project and have discussed the technical and business principles that will support the planned increase in the output of the foundation plant to 100,000 bbl/day. This will involve defining the feasibility of a three (3) train, 65,000 bbl/day facility with an expected start up by 2009.

QP and Sasol Chevron have also signed a Letter of Intent (LOI) to examine GTL Base Oils opportunities in Qatar.

QP and Sasol Chevron have agreed to pursue the opportunity to develop a 130,000 bbl/day upstream/downstream integrated GTL project based on the Sasol Slurry Phase Distillate Process and utilising resources from the North Field. This will involve defining the feasibility of a six (6) train facility with an expected start up by 2010. These efforts will lead to the establishment of a Heads of Agreement (HOA) for the project.

The combined plan will represent an investment of more than $6 billion, making it one of the most significant developments in the global GTL industry to date.

These ventures will build on the technical and operational expertise already established through the development of both ORYX GTL and the EGTL facility in Nigeria. The Integrated Project will also utilise the comprehensive upstream capabilities of ChevronTexaco.

At an announcement ceremony today in Doha, His Excellency Abdullah Bin Hamad Al-Attiyah, Second Deputy Prime Minister and Minister of Energy and Industry of Qatar said:“I welcome these projects and I welcome the participation of Sasol Chevron. We are working hard to realise the ambition of the State of Qatar to become the GTL capital of the world and these projects will make an important contribution to achieving that aim.”

Mr. Pat Davies, a Director of Sasol Chevron and Executive Director of Sasol, said: “I am delighted that we are further building on the success of the Oryx GTL venture. Sasol looks forward with our JV, Sasol Chevron, and QP to grow a very substantial GTL business in Qatar based on our unique technology”

Mr. John Gass, Chairman of Sasol Chevron and President of ChevronTexaco Global Gas, said:

“The pursuit of these opportunities builds upon the solid foundation already established from QP and Sasol’s original GTL plant and reinforces ChevronTexaco’s commitment to building a GTL business as an integral part of our Global Gas strategy. This is an impressive slate of GTL projects and, through Sasol Chevron, we look forward to working with QP to develop superclean liquid fuels from natural gas and to help advance Qatar’s stated ambition to become the GTL capital of the world.”

Mr. George Couvaras, Chief Executive of Sasol Chevron Consulting Limited said: “That Sasol Chevron can call on the extensive resources, expertise and experience of both its parents gives us a major advantage in expanding ORYX GTL and delivering a top class, fully integrated project. We at Sasol Chevron are looking forward to building on the excellent working relationship that Qatar Petroleum and Sasol have already established and to delivering the high quality business and project performance that is already accepted as standard for ORYX GTL.”

“We recognise that an important aspect of the State of Qatar’s diversification strategy is the development of world scale GTL plants utilising resources from the North Field. Sasol Chevron has been pursuing GTL and other opportunities in Qatar as a high strategic priority in order to develop ventures for the mutual benefit of the State of Qatar, QP and Sasol Chevron.”