Leading global engineering and construction services provider Aker Kvaerner wins world-scale polyolefins project in Saudi Arabia.

On behalf of affiliate YANBU National Petrochemical Company (YANSAB), Saudi Basic Industries Corporation (SABIC) has signed a letter of intent with Aker Kvaerner for the engineering, procurement and construction of its world-scale polyolefins complex, in Yanbu, Saudi Arabia.

The project is to be executed on a joint venture basis with China Petrochemical Corporation (SINOPEC Group). Aker Kvaerner will be the joint venture leader, and expects its involvement to be in the region of USD400 million.

"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 polypropylene technology, whilst the polyethylene plant will utilise SABIC''s LLDPE technology.

The project is scheduled to commenceat 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 PP technology. This project combines our in-depth technical expertise with our proven project execution methodology."

Norwegian company 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.

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, throughto 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.

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).

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.

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 replacingtraditional materials in many applications.

Aker Kværner Well Service AS is Aker Kvaerner''s Centre of Excellence for Well Service technology. The company is a principal supplier of Wireline, Tractor and Cased Hole Logging Services to the technology-oriented North Sea oil and gas industry.