Skanska to build gas pipeline for USD 103 M, about SEK 800 M, in Brazil

Skanska has received a contract to build a gas pipeline in Brazil. The total contract value amounts to USD 206 M, of which Skanska’s share is 50 percent. Skanska’s share of USD 103 M, or about SEK 800 M, will be included in order bookings for the second quarter.

The customer is Transportadora Urucú-Manaus, a subsidiary of Petrobras, the state-owned Brazilian oil company that is one of Skanska’s repeat customers in the energy sector in Latin America. The contract relates to a section of a new pipeline between the oil and gas fields in Urucú in Northern Brazil and Manaus. Skanska will build the 186-kilometer section between Anama and Manaus. The gas pipeline will have a diameter of 50 cm (20 inches). The project will start immediately and be completed in 21 months for the start of operation in early 2008. Skanska and the Brazilian construction company Camargo Côrrea, which specializes in pipeline construction, will conduct the project through the joint venture Gasoduto Amazonia Consortium. Skanska is already represented in Manaus, where Skanska Infrastructure Development is active as an owner and operator of the Breitener Energetica co-generation plant, which is operated as a Public Private Partnerships project. Skanska Latin America is one of the continent’s leading construction companies and one of Skanska’s most profitable units. Operations focus primarily on construction, operations and services for the international energy industry. In 2005, the company had about 10,000 employees and sales of about SEK 3.6 billion. For further information please contact: Anna Wenner, Press Officer, Skanska AB, tel +46 8 753 88 99