Chiyoda-Foster Wheeler and Co. LLC will build US $1 billion liquefied natural gas plant in Oman.

CLINTON, N.J.--(BUSINESS WIRE)--Nov. 14, 1996--Oman LNG L.L.C. (OLNG) and Chiyoda-Foster Wheeler and Co. LLC today signed an engineering, procurement and construction agreement to build a liquefied natural gas (LNG) plant at Al-Ghalilah, Oman.

The contract is valued in excess of US$ 1 billion and will be operational early in the year 2000.

The signing of the agreement follows quickly on the signing of the sale and purchase agreement between Oman LNG and Korea Gas Corp. covering the sale and purchase of 4.1 million tons a year of LNG at plateau.

T. Hoshino, general manager of Chiyoda-Foster Wheeler and Co. LLC, commented, "Chiyoda-Foster Wheeler and Company LLC is extremely honored to be selected as the main EPC contractor for this very prestigious project.

"The Oman LNG project represents a significant milestone in the industrial development of Oman and on behalf of our local partners, Bahwan Trading Company and Zubair Enterprises, Chiyoda-Foster Wheeler and Company LLC is particularly pleased to be given the opportunity to become involved in, and to contribute to, such a development."

Announcing the agreement, N. William Atwater, chairman, president and CEO of United States-based Foster Wheeler International Corp., said, "The availability of expertise within Chiyoda-Foster Wheeler and Co. LLC will enable the company to offer the right combination of skills required to successfully undertake this challenging megaproject."

M. Kashiwara, president of Chiyoda Corp., Japan, said, "We are delighted that Chiyoda-Foster Wheeler and Company LLC will be working on this, the largest single project ever undertaken in Oman. The resources and expertise of Chiyoda-Foster Wheeler and Company LLC will ensure that the plant is engineered and constructed to meet both the operational needs of OLNG and the strict environmental requirements of the Omani community."

The plant is designed to produce a nominal 6.6 million tons a year of LNG from two LNG trains, the highest production in the world.

Construction will commence immediately at the coastal site near Sur, approximately 170 Km. south of Muscat.

Chiyoda-Foster Wheeler and Co. LLC will be responsible for building the infrastructure to support approximately 5,000 construction workers as well as the facility itself.

Chiyoda-Foster Wheeler and Co. LLC is an Omani registered company formed to execute large gas projects in the Sultanate of Oman. The local shareholders, Bahwan Trading Co. and Zubair Enterprises, are two substantial Omani corporations operating throughout industry in Oman thus providing strong local support to Chiyoda-Foster Wheeler and Co. LLC in the execution of this major project.

CONTACT: Foster Wheeler, Clinton

Harry Levy, 908/730-4448

or

Richard C. Kroll, 908/730-4444