Qatar Petroleum & ExxonMobil Award FEED Contracts

Qatar Petroleum and Exxon Mobil Corporation report that the Qatargas II LNG Expansion Project has agreed to award the main Front End Engineering and Design (FEED) phase contracts to Chiyoda Corporation for the onshore facilities and M. W. Kellogg for a receiving terminal. The offshore FEED contract will be awarded later this year.

Qatargas II, a joint project between Qatar Petroleum (70 percent) and ExxonMobil (30 percent), will include offshore development of new blocks in Qatar's giant North Field, the world's largest onshore liquefaction trains each producing about 7.8 million tons annually (MTA) of LNG, a fleet of large LNG carriers, and re-gasification/terminal facilities. The LNG onshore facilities will be constructed at the existing Qatargas LNG plant that has been operating since 1996 and where currently three trains are producing over 8 MTA of LNG. Gas deliveries from the Qatargas II trains, which are targeted for sale in the UK and North Europe, will commence from the first train in late 2007.

"Qatargas II is a key element in Qatar's long-term plan of increasing North Field monetization and LNG exports to over 45 MTA by the year 2010," said His Excellency Abdullah bin Hamad Al Attiyah, Minister of Energy & Industry and Chair of Qatar Petroleum.

"ExxonMobil is pleased with the progress which has been made by both parties on this world-class LNG venture. I would like to extend my appreciation to the joint team for their dedication and hard work exerted in reaching this milestone," said Mr. Harry J. Longwell, Director and Executive Vice President of Exxon Mobil Corporation.

Since signing of the Heads of Agreement in June 2002, the companies have jointly completed feasibility studies and pre-FEED work for all project elements.