WorleyParsons/KBR JV Wins FEED Contract for PNG Gas Project

Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation, Reports that Eos (a joint venture of KBR and WorleyParsons) has been selected to conduct the Front End Engineering and Design (FEED) studies for the PNG Gas Project.

The award of the contract follows an announcement by the Project Owners in October that they would undertake a multi-million dollar FEED program for the Project. An investment decision regarding the Project is to be taken following completion of FEED, contingent upon the necessary gas sales agreements being in place for sufficient volumes of gas to allow the Project Owners to make their decision.

ExxonMobil is currently in the process of mobilizing the FEED team which will comprise around 40 ExxonMobil and other Project Owners' personnel and a further 100-120 personnel from Eos. The FEED team will be based principally in Brisbane and in Port Moresby and is expected to fully mobilize in January 2005.

"We have selected Eos because this group has demonstrated the capability to successfully complete similar FEED work programs. Eos has assembled a solid team with experience on major oil and gas projects internationally, and regionally within Australia and PNG" said Mr. Peter Graham, ExxonMobil's PNG Gas Project Manager.

The activities in the FEED program will include preliminary design for the gas field developments in PNG, gas processing and export compression facilities, infrastructure, and the PNG section of the gas pipeline from the Southern Highlands in PNG to the PNG/Australian border. The FEED program is expected to be complete by early 2006.

Project Owners previously signed a binding Letter of Intent with APC (a consortium led by AGL and Petronas) for APC to undertake a separate FEED work program for the gas pipeline from the PNG/Australian border to markets in Australia.

The PNG Gas Project participants are: Esso Highlands Limited, operator (a subsidiary of ExxonMobil), Oil Search, Nippon Oil Exploration, and MRDC (a PNG company representing landowner interests).

Mr. John Grill, Chief Executive Officer of WorleyParsons, said that "The award of the PNG Gas Project FEED Contract to the WorleyParsons and KBR Eos Joint Venture is the first major contract award for WorleyParsons in the Australasian region. It is an excellent example of the international recognition and capability strength that WorleyParsons now has attained. I believe it positions WorleyParsons very well for any future opportunities in the PNG Gas Project and other similar projects."