Aker Kvaerner's project scope, which commences immediately, includes program management services and basic engineering services for the Polypropylene (PP) expansion* and the associated OSBL utilities and offsite facilities. A new polypropylene line will be built with a capacity of 500,000 tonnes per annum (tpa), nearly doubling its current capacity.

"With the world's largest polyolefin market now in Asia, this expansion project will support our strategic focus towards meeting the growing demand in that region. The additional capacity is expected to come on stream in the second quarter of 2008," says Mr. Al-Suwaigh, President of Ibn Zahr Saudi European Petrochemical Company.

"Aker Kvaerner's significant project experience and committed resources In-Kingdom provide the necessary capabilities to ensure successful project delivery," says Wim van der Zande, president of AK Process, Aker Kvaerner's European Process Business.

The plant will make use of Dow's UNIPOL(TM) polypropylene technology.

Last month SABIC affiliate YANBU National Petrochemical Company (YANSAB) also selected Aker Kvaerner for the engineering, procurement and construction of its world-scale polyolefins complex in Yanbu. The project is being executed on a joint venture basis with China Petrochemical Corporation (SINOPEC Group).

Aker Kvaerner also currently has a significant involvement in-Kingdom through the Butanediol (BDO) project that is 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 scheduled for fourth quarter, 2005.

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

                                    

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 Projects Ltd., 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.        * Aker Kvaerner originally provided engineering, procurement, construction and pre-commissioning assistance for the Ibn Zahr I Polypropylene project back in the early nineties and subsequently carried out a major debottlenecking project.

4.        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).

5.        Ibn Zahr Saudi European Petrochemical Company is an affiliate of SABIC: SABIC (70%), Neste Oy-Finland (10%), Ecofuel-Italy (10%), Arab Petroleum Investment Corporation APICORP (10%).

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