Aker Kvaerner Wins Large LNG Contract

Aker Kvaerner in joint venture (50/50) with Ishikawajima-Harima Heavy Industries (IHI) was awarded a contract for the engineering, procurement and construction of the Ingleside Energy Center regasification terminal in Ingleside, Texas, USA. The contract value to the Aker Kvaerner and IHI joint venture is USD 665 million. The project is expected to take approximately three years to complete, after Ingleside Energy Center elects to issue a Notice to Proceed. Construction is scheduled to begin the first quarter of 2007.

The Ingleside Energy Center LNG terminal will be the second large LNG regasification project to combine Aker Kvaerner's expertise in regasification engineering and construction management for LNG facilities and IHI's position as a market leader within design and manufacturing of LNG storage and processing systems in one integrated delivery model.

The design and engineering will be directed from Houston involving approximately 125 personnel from Aker Kvaerner and IHI. In addition, the project will employ a peak construction labor force of approximately 750.

"We are proud of our track record within the oil and gas and LNG regasification industry and our unique partnership with IHI for excellence in delivering LNG tanks and terminals," said John Siffert, President of Aker Kvaerner's LNG business. "We look forward to working with Ingleside Energy Center which we believe will benefit from this exclusive collaboration between two leading global EPC project delivery companies with a proven delivery model."

Ingleside Energy Center, a subsidiary of Occidental Petroleum Corporation, was granted a Federal Energy Regulatory Commission (FERC) permit in July 2005. The facility will process approximately 1.0 billion cubic feet of gas per day.

Aker Kvaerner, Inc., the center of excellence in LNG regasification terminals and IHI Inc., the largest global supplier of LNG onshore storage tanks are the contract parties responsible for delivering the project. The consortium is a powerful alliance which draws on the best expertise of the partners to deliver an outstanding result for our customers and together brings over 35 years of combined experience in LNG storage and regasification.