BA Asia Signs Financial Agreement With Petrochemical Joint Venture To Construct The Largest Petrochemical Complex In Indonesia.

HONG KONG--(BUSINESS WIRE)--Jan. 24, 1997--BankAmerica's Hong Kong-based merchant banking subsidiary, BA Asia, has signed a financial agreement with PT Trans-Pacific Petrochemical Indotama (TPPI), an Indonesian petrochemical joint venture company, for construction of a $2.3 billion olefins and aromatics facility in Tuban, East Java.

The petrochemical complex will be the largest of its kind in Indonesia and use primarily Indonesian condensate as feedstock to produce petrochemicals, which have previously been imported. Completion is scheduled for mid-1999.

BA Asia is acting as the sole financial advisor to the project company and has provided an underwriting commitment for a significant portion of the project debt.

As much as $1.725 billion in project debt is expected to be raised from various export credit agencies, including US Eximbank, JEXIM and the ECGD, international commercial banks, Indonesian banks and Japanese trading companies. The financial close is expected during the third quarter of this year.

TPPI also announced that a Shareholders Agreement has been entered into by PT Tirtamas Majutama (10 percent), Trans Pacific Petrochemicals Ltd. (an affiliate of Tirtamas, 60 percent), a subsidiary of The Siam Cement Public Company Limited (20 percent) and Nissho Iwai Corporation (10 percent).

Selection of a contractor consortium to construct the facilities was also announced, comprising US-based Stone & Webster Engineering Company, AEC International Projects Inc., Process Engineers Incorporated, and JGC Corporation of Japan.

In addition, TPPI announced that it expects to sign an agreement with Koch Refining International Pte Ltd., a subsidiary of US-based Koch Industries, to supply additional condensate as feedstock for the project and to purchase excess aromatic product production, on a stand-by basis.

PT Tirtamas Majutama President & Director Mr. Hashim S. Djojohadikusumo expressed enthusiasm for the project. "Our international partners bring unparalleled regional technical capabilities, petrochemical and product marketing experience to ensure the success of the project," he said.

"This substantial investment represents a strong confidence in Indonesia's economy and will lead to the creation of thousands of jobs. TPPI is set to become a key participant in South-East Asia's growing petrochemicals market," he said.

The project will be capable of producing three million metric tons per annum of olefins, aromatics and other products and will be Indonesia's first integrated olefins and aromatics facility. It will utilize 98,000 barrels per stream day of condensate as feedstock.

The majority of the olefins and a portion of the aromatics production will be sold to downstream petrochemical facilities located adjacent to TPPI's main `cracker' facility. Those facilities initially include a 180,000 MTPA High Density Polyethylene plant, a 300,000 MTPA Low Density Polyethylene plant, a 200,000 MTPA Polypropylene plant and a 500,000 MTPA Styrene Monomer plant. All will be constructed simultaneously, and collectively comprise the Tuban petrochemicals complex.

Olefin and aromatics produced by the facility will meet growing domestic demand or be exported to other South-East Asian nations.

BankAmerica Corporation is the third largest bank holding company in the United States and has conducted business in Asia for 50 years. Through its network of offices in 38 countries worldwide, it provides global wholesale and investment banking services for large corporations, multi-nationals, governments and financial institutions.

CONTACT: Nerys Williams, Hong Kong, (852) 2597 3389

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