Yokohama, Japan - A consortium of JGC Corporation, PT Brown & Root Indonesia, a subsidiary of KBR and PT PERTAFENIKKI Engineering (PFN) of Indonesia, the subsidiary of JGC has been awarded the engineering, procurement, construction and commissioning (EPCC) contract by BP Berau, Ltd. for the Tangguh LNG plant at Teluk Bintuni, Papua Province, Republic of Indonesia. BP is the operator of the Tangguh project.

The EPCC contract was won in March 2003 following a highly competitive and rigorous bidding process. After recognizing additional component and environmental factors that had accrued in the period following the bid submission, the final award was made on Sunday, March 6, 2005, at a value of US$1.8 billion.

The scope of the project includes the construction of a two-train LNG processing plant and associated support facilities. Each train will have a capacity of 3.8 million tonnes per annum (MTPA).

The Tangguh project represents the largest capital development project currently underway in Indonesia. Development of the winning bid for the project involved the JGC-KBR-PFN consortium identifying more than 1500 potential optimizations and cost reductions to the project, and then selecting and applying those of the greatest benefit to BP.

The work scope includes development of extensive infrastructure at the site including marine facilities, product storage, utility support systems, and housing and administrative facilities for the plant staff. The project is expected to begin producing LNG in 2008, with initial product shipments to China, S. Korea, and the North American west coast, etc.

BP’s partners in the Tangguh Project are MI Berau B.V. (held by Mitsubishi Corporation and INPEX Corporation) - 16.30 per cent; CNOOC Ltd.; Nippon Oil Exploration Berau; KG Companies (held by Japan National Oil Corporation, Kanematsu Corporation and Overseas Petroleum Corporation); and LNG Japan Corporation (held by Sojitz Corporation and Sumitomo Corporation).

JGC is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large scale projects worldwide. JGC is currently executing projects in Nigeria, Algeria, Libya, Saudi Arabia, Oman, Abu Dhabi, Qatar, China and other countries. Established in 1928, JGC has a strong background in lump-sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects, with annual sales turnover in excess of US$ 3 billion.