News

Dec 21, 2009

Chiyoda Corporation (“Chiyoda”) (TSE: 6366; ISIN: JP3528600004) today announces that Petrobras Netherlands B.V. (“Petrobras”) has awarded a Front End Engineering and Design (“FEED”) contract for an Onboard Natural Gas Liquefaction Unit (“ONGU”), also commonly referred to as floating LNG or LNG FPSO, to SBM Offshore (“SBM”) in collaboration with Chiyoda. This project is being conducted by the Joint Venture (“JV”) formed by Petrobras, BG, Repsol and Galp Energia for the pre-salt reservoirs of the Santos Basin offshore Brazil.

1.Client:

Petrobras Netherlands B.V.

2.Contract Date:

December 15, 2009

3.Project Scope:

FEED work for ONGU with a capacity of 2.7 million tons per annum (MTPA) of LNG

4.Execution:

Joint execution by Chiyoda and SBM

5.Completion:

End of 2010

6.Contract Price:

Lump Sum approx. US$ 40 million

The JV is studying the ONGU concept as a means to handle the associated gas that will be produced by the series of oil and gas producing floating production, storage and offloading facilities (“FPSOs”) that are planned to be put in operation for the development of the Pre-salt fields located deepwater in the Santos Basin in Brazil in the coming years. The ONGU will process and liquefy natural gas, butane, propane, and condensate with processing capacity of up to 14 million cubic meters per day of associated gas. The processed products, in turn, will be transported to the consumer market via gas carrier vessels and regasification terminals. The ONGU will be an important source of gas supply to the Brazilian market and at the same time makes it possible to export the processed products, especially LNG, during periods of low domestic demand.

Chiyoda and SBM will work together with the aim to execute the project by combining Chiyoda’s proven and unrivaled experience in the execution of LNG projects with SBM’s strong expertise in engineering, construction supervision, and operations of FPSOs. By utilizing their strengths, the two companies will jointly seek to contribute and participate in the further development of the ONGU concept for the JV ultimately leading to an opportunity of monetizing the massive Pre-salt gas reserves in the Santos Basin.

The award of this FEED contract is an important step for Chiyoda in developing its floating LNG technology and its strong ambition to become a leading player in the upcoming floating LNG business.

Chiyoda has for over 60 years constantly leveraged its extensive experience and far-reaching global network to give it an unrivaled advantage, and has been at the forefront of this relentless drive for innovative plant design and world class project execution, having been involved in every part of the gas value chain since the inception of the LNG industry.

Chiyoda Corporation, headquartered in Yokohama, Japan, provides services in the fields of engineering, procurement and construction on a global basis for gas processing, refineries, and other hydrocarbon or other industrial plant projects, particularly Gas Value Chain projects, in the Middle East, Russia, Africa, South East Asia, and Oceania regions.