"We are delighted with this joint achievement. Our successful cooperation, hard work and mutual understanding has demonstrated our combined strength in this highly competitive international environment. This is the first opportunity to unite our strength, creativity and resource in international bidding. It establishes a sound basis for us to work together in the future on a wide variety of business prospects," said Wim van der Zande, President of AK Process, Aker Kvaerner's European Process business.

He continued: "Our organisations are extremely focussed on the successful delivery of this project and our integrated team is already making preparations to ensure we get underway quickly."

Aker Kvaerner will be the joint venture leader on this project for YANSAB, and expects its involvement to be in the region of USD400 million.  The total contract value to the joint venture is not disclosed. The joint venture will provide the engineering, procurement and construction for a Linear Low Density Polyethylene (LLDPE) plant and a Polypropylene (PP) 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.

There will be an integrated management team, whereby Aker Kvaerner's scope will include the overall project management services, the extended basic engineering and procurement of the critical equipment. SINOPEC will provide the detailed engineering and a significant proportion of the skilled labour required for the construction activities.

The project is scheduled to commence at the end of this month, and the complex is expected to come on stream in April 2008.

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).

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.

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