Decisions Concerning Trans-European Pipeline to be Discussed at Caspian Energy to Europe 99 Conference.

HOUSTON--(BUSINESS WIRE)--Sept. 9, 1999--

Engineering and market decisions and conclusions affecting the feasibility of a Trans-European pipeline to transport Caspian crude to European refineries will be presented at the Caspian Energy to Europe 99 Conference at the Bucharest World Trade Center in Romania, convening from Sept. 18-21, 1999.

Parsons Energy & Chemicals Group Inc., through its joint venture HLP/Parsons, is conducting the study in its Houston headquarters.

The Constanta to Trieste Pipeline System (CTPL) will directly supply Caspian Region crude oil to Eastern and Central European refineries without passing through the sensitive Bosporus Straits. The study, financed two-thirds by the United States Trade and Development Agency (USTDA) and one-third by HLP/Parsons, investigates the technical and economic feasibility of the crude oil transportation system.

Among the many advantages of the proposed 1,375 kilometer (855 mile) Constanta, Romania to Trieste, Italy pipeline is the pipeline's route through politically stable countries. The CTPL will provide an important alternate supply to Eastern European refineries currently being served by only Russian crude supplies. The lighter crude, with its lower sulfur content, will be attractive to the environmentally sensitive Eastern and Central European refineries. By interconnecting to existing European pipelines, the CTPL will provide additional stability of crude supply to Central and Western Europe, promoting competition from additional crude source options.

By providing an alternate delivery system to European refineries, the CTPL complements, rather than competes with, other pipeline routes being proposed to deliver Caspian Area crude oil to the market. It further mitigates the risk of not being able to deliver Caspian crude oil to markets by interconnecting the Black Sea and other north-south pipelines in Hungary and Italy, providing a direct link to Eastern and Central European markets.

Initial economic analysis indicates that the high quality Caspian crude can be delivered to European refineries at competitive tariffs. Project execution strategy, preliminary environmental assessment, and legal reviews are being performed as part of the ongoing study. Data on the project will be presented at the Caspian Energy to Europe 99 Conference in Bucharest.

For registration and information concerning the Caspian Energy to Europe 99 Conference contact Brindusa Vladutu at [phone] or by e-mail at [e-mail]. For more information about the CTPL, contact J.T. Powers at 713/892-0531.

Parsons is one of the world's largest full-service engineering, procurement and construction organizations. As a leader in many diversified markets, such as infrastructure and technology, transportation, and energy and chemicals, Parsons provides services to federal, regional and local government agencies as well as private industries worldwide. For more about Parsons, visit the company on the World Wide Web at www.parsons.com.