"The award of a further project in Saudi Arabia, particularly one of this scale and complexity, recognises Aker Kvaerner's extensive project competence and strategic commitment to SABIC and the Kingdom of Saudi Arabia," says Inge K. Hansen, president and CEO of Aker Kvaerner.

The Aker Kvaerner led joint venture will provide the engineering, procurement and construction for the project. The new facility will include a polyethylene plant and a polypropylene plant, together with the associated product handling facilities. The new plants, part of a major new ethylene complex, will each have a nameplate capacity of 400,000 tonnes per annum. The PP plant will use Dow's UNIPOL(TM) polypropylene technology, whilst the polyethylene plant will utilise SABIC's LLDPE technology.

The project is scheduled to commence at the end of this month, and forms a major step forward in the development of one of the world's largest petrochemical plants. The new production operations will apply the latest cutting-edge technologies and the complex is expected to come on stream in April 2008.

Hansen continues: "Aker Kvaerner has an extensive track record in polyolefins*, with considerable experience in the application of Dow's leading UNIPOL(TM) PP technology. This project combines our in-depth technical expertise with our proven project execution methodology."

Aker Kvaerner has further significant involvement In-Kingdom through the Butanediol project currently being executed for GACIC (Gulf Advanced Chemical Industries Company). This 75,000 tonnes per annum facility is currently in the advanced stages of construction at Al Jubail, with five million field man-hours worked without a lost time incident. Plant start-up is expected in the fourth quarter, 2005.

YANSAB is the newest SABIC affiliate. In addition to the PP and LLDPE production capacity, YANSAB is planned to produce 1.3 million tpa of Ethylene; 400,000 tpa of Propylene; 500,000 tpa of High Density Polyethylene (HDPE); 700,000 tpa of Mono Ethylene Glycol (MEG); and 250,000 tpa of Benzene, xylene and toluene compound. The complex will manufacture a wide range of basic chemical, intermediate and polymer products.

ENDS

For further information, please contact:

 

Media: Torbjorn Andersen, SVP Group Communications, Aker Kvaerner: Tel: +47 67 51 3036 Mob: +47 928 85 542

Netherlands: Wim van der Zande, Aker Kvaerner, Zoetermeer, Tel: +31 (0)79 368 8434

Saudi Arabia: Henk Dolman, Aker Kvaerner, Al Khobar: Tel: +966 3801 0003 ext. 106 Mobile : +966 5 0681 9026 

UK: Vanessa Mourant, Aker Kvaerner, Tel: +44 (0) 207 339 1064 Mob: +44 7771 806566

 

Investor relations:
Lasse Torkildsen, Vice President Group Communications, Aker Kvaerner. Tel: +47 67 51 30 39                             

1.        AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities. The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 35.6 billion and employs approximately 22,000 people in more than 30 countries.

2.        AK Process is a trading name of Aker Kvaerner Netherlands B.V., a wholly owned subsidiary of AKER KVAERNER ASA and the legal entity responsible for the execution of the work. AK Process serves the chemicals and polymers, refining and onshore oil & gas industries.  It provides the full life cycle of a project from concept studies, through to design, engineering, project management, delivery of process technologies, procurement, construction and maintenance services. As a pure project execution/EPC specialist, AK Process can provide customers with strategic 'one-off' services or full turnkey solutions under a single project management control. It works with its customers in the development of major technological innovations, having participated in the conceptualisation and implementation of ideas, which are the foundation for world-class production facilities.

3.        SABIC is the largest petrochemical producer in the Middle East and now the 6th largest manufacturer in polypropylene and 4th in overall polyolefins production. The group produces almost 5 million tons of polyethylene and polypropylene per year. SABIC is owned by the Saudi Government (70%) and the private sector (30%). Private sector shareholders are from Saudi Arabia and other countries of the six-nation Gulf Cooperation Council (GCC).

4.        Sinopec Corp. is one of the largest integrated energy and chemical companies in China. It is China's largest producer and distributor of oil products (both wholesale and retail of gasoline, diesel, jet fuel) and No.1 producer and supplier of major petrochemical products (including petrochemical intermediates, synthetic resin, synthetic fibre monomers and polymers, synthetic fibre and chemical fertilizer), as well as the 2nd largest crude oil producer.

5.        *Polyolefins are a family of polymers derived from propylene and ethylene. As polymers, they form tough, flexible plastics with a large variety of uses. Applications range from rigid materials for refrigerators, computers and car parts, to soft, flexible fibres. Some have high heat-resistance for microwave food containers, while others melt easily and can be used for heat-sealable food packaging. Generally easy to recycle, polyolefins are steadily replacing traditional materials in many applications.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com