Clough-PGS Selected for Operation and Maintenance Of Syntroleum Gas-to-Liquids Plant in Australia

Apr 11, 2001, 01:00 ET from Syntroleum Corporation

    TULSA, Okla., April 11 /PRNewswire/ --
 Syntroleum Corporation (Nasdaq: SYNM) announced today that it has contracted
 with Clough-PGS Joint Venture to provide operating and maintenance services
 for its 10,000-barrel per day gas-to-liquids plant known as the Sweetwater
 project, currently under development in Australia.  Clough PGS is a joint
 venture between Clough Engineering Ltd., an Australian company, which is part
 of Clough Ltd, and PGS Production Limited, a UK subsidiary of the Petroleum
 Geo-Services Group.
     The 13-year agreement totals approximately AUD$350m and calls for
 Clough-PGS to provide complete operating and maintenance services for the
 plant, from inlet flange for its natural gas feed through to the wharf
 facilities where the finished specialty products will be shipped to market.
 Staffing will begin immediately to assist with project execution and preparing
 for actual construction, which Syntroleum currently expects to begin later
 this year.  During the construction phase of the project, the joint venture
 will provide operations planning services to Syntroleum, working with the
 engineering contractor to develop operating manuals, training programs and
 comprehensive maintenance programs.  The joint venture will provide all
 staffing for the full operation and maintenance of the plant when it comes on
 stream.
     The fixed price contract meets Syntroleum's expectations for obtaining
 project financing for the project.  The contract also provides financial
 incentives for the operator to maximize revenues from the project.
     The joint venture partners are long-established international firms that
 specialize in managing plant engineering, construction and operations.  Clough
 Engineering Ltd is headquartered in Perth, Australia and is an engineering
 design, construction, operations and maintenance service company.  PGS
 Production Limited is headquartered in Aberdeen, Scotland and is the leading
 provider in the management, maintenance and operational services for oil and
 gas facilities.
     "We are pleased to have world class organizations such as PGS and Clough
 working with us on Sweetwater," stated Mark Agee, Syntroleum president and
 chief operating officer.  "They bring many years of experience and we expect
 them to make significant contributions to the project execution and to
 on-going operations."
     "We are excited about this opportunity to operate Syntroleum's first
 commercial GTL plant," stated Dr. Brian Hewitt, Clough Limited's chief
 executive officer.  "We see many applications for this technology in Australia
 and numerous locations around the world."
     "We believe that gas-to-liquids holds great promise for the future, both
 for specialty products such as those that will be made by Sweetwater, as well
 as ultra-clean fuels that are increasingly required today in many markets,"
 stated Jim Atack, PGS Production Limited Managing Director.  "With our
 extensive operations experience, we believe this will be the first of a number
 of opportunities to provide operational services for Syntroleum plants
 throughout the world."
     The Sweetwater project is a 10,000 barrels per day gas-to-liquids plant
 development that will employ the Syntroleum Process to convert natural gas
 into ultra-clean, high-performance and sulfur-free synthetic specialty
 products such as lubricants, industrial fluids and paraffins, as well as
 synthetic transportation fuels.  Merrill Lynch has been retained to assist
 Syntroleum with obtaining debt financing for the project.
 
     Syntroleum Corporation is the developer of a proprietary technology for
 converting natural gas into synthetic liquid hydrocarbons.  The company, in
 partnership with others, plans to build GTL plants using its technology in a
 number of global locations.  Additionally, Syntroleum licenses its process to
 oil companies for the manufacture of fuels.  Current licensees include ARCO
 (now BP), Enron, Ivanhoe Energy, Kerr-McGee, Marathon, Repsol-YPF, Texaco and
 the Commonwealth of Australia.
 
     This document includes forward-looking statements as well as historical
 information. These forward-looking statements include, but are not limited to,
 statements relating to the Syntroleum Process and related technologies,
 gas-to-liquids plants based on the Syntroleum Process, including the
 Sweetwater plant, anticipated costs to design, construct and operate these
 plants, anticipated costs to make products from these plants, the timing of
 commencement and completion of the design and construction of these plants,
 obtaining required financing for these plants, the economic construction and
 operation of gas-to-liquids plants, the value and markets for plant products,
 testing, certification, characteristics and use of plant products, the
 continued development of the Syntroleum Process (alone or with partners),
 anticipated capital expenditures, anticipated revenues, the sale of and costs
 associated with our real estate inventory and any other statements regarding
 future growth, cash needs, operations, business plans and financial results.
 When used in this document, the words "anticipate," "believe," "estimate,"
 "expect," "intend," "may," "plan," "project," "should" and similar expressions
 are intended to be among the statements that identify forward-looking
 statements. Although we believe that the expectations reflected in these
 forward-looking statements are reasonable, these kinds of statements involve
 risks and uncertainties. Actual results may not be consistent with these
 forward-looking statements. Important factors that could cause actual results
 to differ from these forward-looking statements include the risks that the
 cost of designing, constructing and operating commercial-scale gas-to-liquids
 plants will exceed current estimates, the schedule for construction of
 commercial-scale gas-to-liquids plants will extend beyond current estimated
 schedules, financing for design and construction of commercial-scale
 gas-to-liquids plants and our other activities may not be available,
 commercial-scale gas-to-liquids plants will not achieve the same results as
 those demonstrated on a laboratory or pilot basis, gas-to-liquids plants may
 experience technological and mechanical problems, improvements to the
 Syntroleum Process currently under development may not be successful, markets
 for gas-to-liquids plant products may not develop, plant economics may be
 adversely impacted by operating conditions, including energy prices,
 construction risks and risks associated with investments and operations in
 foreign countries, our ability to implement corporate strategies, competition,
 intellectual property risks, our ability to obtain financing and other risks
 described in the company's filings with the Securities and Exchange
 Commission.
 
     (R) "Syntroleum" is registered as a trademark and service mark in the U.S.
 Patent and Trademark Office.
 
 

SOURCE Syntroleum Corporation
    TULSA, Okla., April 11 /PRNewswire/ --
 Syntroleum Corporation (Nasdaq: SYNM) announced today that it has contracted
 with Clough-PGS Joint Venture to provide operating and maintenance services
 for its 10,000-barrel per day gas-to-liquids plant known as the Sweetwater
 project, currently under development in Australia.  Clough PGS is a joint
 venture between Clough Engineering Ltd., an Australian company, which is part
 of Clough Ltd, and PGS Production Limited, a UK subsidiary of the Petroleum
 Geo-Services Group.
     The 13-year agreement totals approximately AUD$350m and calls for
 Clough-PGS to provide complete operating and maintenance services for the
 plant, from inlet flange for its natural gas feed through to the wharf
 facilities where the finished specialty products will be shipped to market.
 Staffing will begin immediately to assist with project execution and preparing
 for actual construction, which Syntroleum currently expects to begin later
 this year.  During the construction phase of the project, the joint venture
 will provide operations planning services to Syntroleum, working with the
 engineering contractor to develop operating manuals, training programs and
 comprehensive maintenance programs.  The joint venture will provide all
 staffing for the full operation and maintenance of the plant when it comes on
 stream.
     The fixed price contract meets Syntroleum's expectations for obtaining
 project financing for the project.  The contract also provides financial
 incentives for the operator to maximize revenues from the project.
     The joint venture partners are long-established international firms that
 specialize in managing plant engineering, construction and operations.  Clough
 Engineering Ltd is headquartered in Perth, Australia and is an engineering
 design, construction, operations and maintenance service company.  PGS
 Production Limited is headquartered in Aberdeen, Scotland and is the leading
 provider in the management, maintenance and operational services for oil and
 gas facilities.
     "We are pleased to have world class organizations such as PGS and Clough
 working with us on Sweetwater," stated Mark Agee, Syntroleum president and
 chief operating officer.  "They bring many years of experience and we expect
 them to make significant contributions to the project execution and to
 on-going operations."
     "We are excited about this opportunity to operate Syntroleum's first
 commercial GTL plant," stated Dr. Brian Hewitt, Clough Limited's chief
 executive officer.  "We see many applications for this technology in Australia
 and numerous locations around the world."
     "We believe that gas-to-liquids holds great promise for the future, both
 for specialty products such as those that will be made by Sweetwater, as well
 as ultra-clean fuels that are increasingly required today in many markets,"
 stated Jim Atack, PGS Production Limited Managing Director.  "With our
 extensive operations experience, we believe this will be the first of a number
 of opportunities to provide operational services for Syntroleum plants
 throughout the world."
     The Sweetwater project is a 10,000 barrels per day gas-to-liquids plant
 development that will employ the Syntroleum Process to convert natural gas
 into ultra-clean, high-performance and sulfur-free synthetic specialty
 products such as lubricants, industrial fluids and paraffins, as well as
 synthetic transportation fuels.  Merrill Lynch has been retained to assist
 Syntroleum with obtaining debt financing for the project.
 
     Syntroleum Corporation is the developer of a proprietary technology for
 converting natural gas into synthetic liquid hydrocarbons.  The company, in
 partnership with others, plans to build GTL plants using its technology in a
 number of global locations.  Additionally, Syntroleum licenses its process to
 oil companies for the manufacture of fuels.  Current licensees include ARCO
 (now BP), Enron, Ivanhoe Energy, Kerr-McGee, Marathon, Repsol-YPF, Texaco and
 the Commonwealth of Australia.
 
     This document includes forward-looking statements as well as historical
 information. These forward-looking statements include, but are not limited to,
 statements relating to the Syntroleum Process and related technologies,
 gas-to-liquids plants based on the Syntroleum Process, including the
 Sweetwater plant, anticipated costs to design, construct and operate these
 plants, anticipated costs to make products from these plants, the timing of
 commencement and completion of the design and construction of these plants,
 obtaining required financing for these plants, the economic construction and
 operation of gas-to-liquids plants, the value and markets for plant products,
 testing, certification, characteristics and use of plant products, the
 continued development of the Syntroleum Process (alone or with partners),
 anticipated capital expenditures, anticipated revenues, the sale of and costs
 associated with our real estate inventory and any other statements regarding
 future growth, cash needs, operations, business plans and financial results.
 When used in this document, the words "anticipate," "believe," "estimate,"
 "expect," "intend," "may," "plan," "project," "should" and similar expressions
 are intended to be among the statements that identify forward-looking
 statements. Although we believe that the expectations reflected in these
 forward-looking statements are reasonable, these kinds of statements involve
 risks and uncertainties. Actual results may not be consistent with these
 forward-looking statements. Important factors that could cause actual results
 to differ from these forward-looking statements include the risks that the
 cost of designing, constructing and operating commercial-scale gas-to-liquids
 plants will exceed current estimates, the schedule for construction of
 commercial-scale gas-to-liquids plants will extend beyond current estimated
 schedules, financing for design and construction of commercial-scale
 gas-to-liquids plants and our other activities may not be available,
 commercial-scale gas-to-liquids plants will not achieve the same results as
 those demonstrated on a laboratory or pilot basis, gas-to-liquids plants may
 experience technological and mechanical problems, improvements to the
 Syntroleum Process currently under development may not be successful, markets
 for gas-to-liquids plant products may not develop, plant economics may be
 adversely impacted by operating conditions, including energy prices,
 construction risks and risks associated with investments and operations in
 foreign countries, our ability to implement corporate strategies, competition,
 intellectual property risks, our ability to obtain financing and other risks
 described in the company's filings with the Securities and Exchange
 Commission.
 
     (R) "Syntroleum" is registered as a trademark and service mark in the U.S.
 Patent and Trademark Office.
 
 SOURCE  Syntroleum Corporation