AK Process, Aker Kvaerner's European process business, worked on the first phase of the project to provide the basic project definition and capital cost estimate for several months, with local support provided by Aker Kvaerner's Beijing and Shanghai offices. With a contract value to Aker Kvaerner of USD17 million, the scope of work during this second phase will comprise engineering, procurement and construction management services for the core process plant, including implementation of BP Chemicals' Cativaâ process technology.

Wim van der Zande, President, AK Process, said: "We are delighted to be working on the next phase of this project with YARACO, which completely fits with our business strategy. This is a joint venture between two of our key clients - Sinopec and BP - in, for Aker Kvaerner, an important Chinese market and one of our core process businesses. We have been selected based on our ability to provide YARACO with a project that meets the highest international standards for safety, quality and efficiency."

The plant is expected to start-up in March 2005.

The project expects to expand the capacity of the existing acetic acid plant to 350,000 tonnes per annum. It will also include a new carbon monoxide (CO) plant to provide additional feedstock.

In the first phase of the project, Aker Kvaerner provided the front end design for the acetic acid plant expansion and co-ordinated the total core plant FEED scope, including the new CO plant and interfaces with the off-site facilities.

Acetic acid, one of the world's most important chemicals, is used in a variety of products from textiles to pharmaceuticals. Major applications are in the manufacture of Vinyl Acetate which has its main outlets in paints, adhesives and coatings.

ENDS

Vanessa Mourant, Aker Kvaerner, London, UK: Tel : +44 (0)20 7339 1064 or +44 (0)7771 806566.

Tony Luetchford, Aker Kvaerner, Portsmouth, UK: Tel: +44 (0)1489 611111

1. Aker Kværner ASA is through its subsidiaries and affiliates ("Aker Kvaerner") a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner spans a number of industries, including Oil & Gas production, Refining & Chemicals, Pharmaceuticals & Biotechnology, Mining & Metals, Power, Pulping and Shipbuilding. Aker Kvaerner has aggregated annual revenues of approximately USD 6 billion and employs around 29,000 employees in more than 30 countries. The Aker Kvaerner group consists of many legally independent entities, constituting their own separate identities. Aker Kvaerner is used as the common brand or trademark for most of these entities.

AK Process