Aker Kvaerner Expands Presence in Saudi Arabia

Aker Kvaerner is to build on its presence in Saudi Arabia through the consolidation of the activities of its two in-Kingdom organizations, John Brown SA Ltd and Saudi Davy Company Ltd, into a new business, AK Gulf. AK Gulf is a subsidiary of AK Process, one of Aker Kvaerner's core businesses serving the refining, chemicals and onshore oil and gas industries.

Aker Kvaerner has been active for several decades in Saudi Arabia. The present restructuring and renaming of its in-Kingdom operations reflect the company's ongoing commitment to the region. AK Process, together with its new joint venture partner, Saudi Pan Gulf, will intensify its business development effort and further increase its presence in the region.

Following the launch of the new company, Wim van der Zande, President of AK Process, said, "The continuing growth in the petrochemical industry in Saudi Arabia and increased private sector investments offer a number of attractive opportunities for us to continue our long-standing relationship with the business community in-Kingdom. We will now expand further on this presence and create a focused service provider equipped to deliver complex projects and integrated, technology-driven solutions."

Moving forward, the company's vision, through AK Gulf, is to be the E&C Contractor of choice where it can provide niche technology and/or a know-how position. The primary focus will be on projects in the petrochemical sector, where it holds key technology positions for processes such as polyethylene, polypropylene, EO/EG, acetic acid and its derivatives, PTA, BDO and Methanol. Excellence will be achieved through predictable project execution applying Aker Kvaerner's proven Project Execution Model and through low cost / high value engineering solutions.

AK Process has a significant involvement in-Kingdom through the Butanediol (BDO) project that is being executed for GACIC (Gulf Advanced Chemical Industries Company), a SIPCHEM (Saudi International Petrochemical Company) affiliate. This 75,000 tons per annum facility is currently in the advanced stages of construction at Al Jubail, with two million field man-hours worked without a lost time incident. Plant start-up is scheduled for fourth quarter, 2005.

AK Gulf is operating with immediate effect.