First Shipment Achieved at World's Largest Capacity LNG Train in Egypt

HOUSTON, Texas – KBR, a subsidiary of Halliburton , and its joint venture partners are celebrating the successful achievement of the first LNG shipment from the SEGAS LNG liquefaction facility located in the port of Damietta in northern Egypt. The project sets a new industry benchmark as the largest capacity single LNG train facility ever built, with a capacity of approximately 5 million tonnes per annum (MTPA). The project is expected to generate substantial export earnings for Egypt, which has now become the thirteenth nation to export LNG.

The SEGAS facility also achieved one of the shortest project development schedules for a grassroots LNG facility - requiring less than 4-1/2 years from project conception in August 2000 to Ready For Start Up (RFSU) in November 2004 - which is two years less, a 30 percent reduction, than the previous industry benchmark and a fraction of the industry norm.

SEGAS, a special purpose operating company in Egypt owned by Uni?n Fenosa Gas 80% (50% Uni?n Fenosa of Spain and 50% Italian energy company Eni), Egyptian Natural Gas Holding Company (EGAS) 10% and Egyptian General Petroleum Corporation (EGPC) 10%, awarded the engineering, procurement and construction (EPC) contract for the project to the joint venture of KBR, JGC Corporation of Japan and Tecnicas Reunidas (TR) of Spain with effective date November 2001. KBR and its joint venture partners successfully achieved the RFSU milestone in just 35-1/2 months following the EPC contract award.

"From raising the industry standard in schedules to exporting the first LNG cargo at this landmark facility, this performance reaffirms KBR's position as the industry leader in LNG," said Lou Pucher, Senior Vice President of KBR's Energy & Chemicals division. "LNG has been a major part of KBR's business for nearly thirty years and we are proud to continue setting the benchmark for LNG project execution with record breaking achievements such as these."

The engineering work for the SEGAS LNG facility was managed from KBR's affiliate company, M.W. Kellogg Limited (MWKL), in Greenford, London, U.K., and executed jointly from this location and the TR offices in Madrid, Spain, by an integrated team drawn from the resource strengths and experience of KBR, JGC, TR and MWKL. In addition, the joint venture partners utilized the services of Soluziona (Union Fenosa's own services group), and employed the dedicated resources of Egyptian companies ENPPI for engineering, and Petrojet and Orascom as main subcontractors.