Technip-Coflexip Changes Terms of South African GTL Contract

The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd (PetroSA) and Technip-Coflexip have agreed to convert the reimbursable EPCM GTL (Gas-To-Liquids) contract they signed in May 2002, into a lump sum EPC contract worth about 26 million euros.

For Technip-Coflexip, this contract is a breakthrough on the emerging market of gas-to-liquids (GTL) facilities for which several large-scale projects are currently being developed. GTL facilities are designed to produce high quality liquid hydrocarbons from gas. The liquid hydrocarbons can be easily transported from the gas producing countries and they meet the needs of the refiners to satisfy new environmental standards.

This contract covers the implementation of a semi-commercial unit based on Statoil's Fisher Tropsh technology. The plant will be built at Mossel Bay in the Republic of South Africa and will have a capacity of 1,000 barrels/day. The expected start-up date is end of 2003.

Under the terms of the contract, Technip-Coflexip's scope of work includes detail engineering, procurement and construction. The engineering center of the Group in Rome is carrying out this project in association with the affiliate that Technip-Coflexip recently set up in South Africa together with local partners (Technip South Africa).