HHI Wins Escravos Gas Project Phase Three in Nigeria

Hyundai Heavy Industries Ltd. has been awarded the engineering, procurement, construction (EPC) and commissioning contract for onshore and offshore works of the Escravos Gas Project Phase 3 (EGP3) worth US$620 million by Chevron Nigeria Limited (CNL) in Nigeria, operator of the Nigerian National Petroleum Corporation (NNPC)/Chevron Joint Venture, with equities of 60 and 40 percent, respectively.

For utilizing the natural gas from the Escravos Field located 161km southeast of Lagos, Nigeria, EGP3 will process 400 million standard cubic feet of natural gas per day (scfd) out of which 330 million standard cubic feet of natural gas per day will be used as feedstock for the neighboring Escravos Gas-To-Liquids (EGTL) project.

The scope of the project includes the expansion of existing facilities, construction of onshore gas treatment plant, modification of floating, storage and offloading (FSO) unit and two units of offshore platform. The existing Escravos Gas Plant will be upgraded from 285 million scfd to 680 million scfd gas processing capacity HHI's Industrial Plant and Engineering Division will perform the onshore gas plant and FSO modification, while the Offshore and Engineering Division will execute the offshore platform. EGP 3 targets completion by the first half of 2008.

HHI's Industrial Plant and the Engineering Divisions will leverage on synergies and position the company as a major EPC contractor in West Africa. Both divisions are targeting US$2.7 billion of new orders this year while pursuing initiatives in gas and oil projects HHI recognizes huge investments in Gas to Liquid (GTL) and Liquefied Natural Gas (LNG) projects and consequently will focus its sales resources in Nigeria in particular and, Southwestern Africa, and the Middle East where developments of these projects are on-going.

Currently, HHI is working on three major oil and gas projects in Nigeria worth US$1.5 billion from the global oil majors, namely Shell and ExxonMobil, in the years of 2000, 2002 and 2005, including the Forcados York Integrated Project, Bonny Terminal Integrated Project, etc.