Borouge awards Project Management and Financial Advisory Contracts for major expansion of petrochemical complex in Ruwais, Abu Dhabi, UAE

Abu Dhabi, 12 July 2005 - Borouge today awarded Project Management Consultancy (PMC) and Financial Advisory Contracts for a proposed major expansion of its world scale petrochemical complex in Ruwais, Abu Dhabi, UAE.

The Company expects to invest in excess of USD 2.5 billion to expand its production capacity to 2 million tonnes of enhanced polyolefins (polyethylene and polypropylene) per annum from its 2005 capacity of 600 kts.

The project now enters the Front End Engineering Design (FEED) phase with the Project Management Consultancy (PMC) awarded to Foster Wheeler International. The Financial Advisory Contract for the project has been awarded to HSBC.

These appointments follow the conclusion of a feasibility study commissioned by Borouge owners, Abu Dhabi National Oil Company (ADNOC) and Borealis A/S of Denmark.

The new expansion, which will be located next to Borouge’s existing petrochemical complex in Ruwais, is expected to be completed in 2010. The downstream units will comprise of one 540 kts per annum Borstar® technology enhanced PE unit and two 400 kts per year Borstar® PP units.

The new capacity will be marketed mainly to the Middle East and Asia Pacific targeting the high end differentiated applications in the added value pipe and high performance packaging areas.

Further details will be announced at a later stage.

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