PRESS RELEASE - NEW LPG CARRIERS

Sonatrach, the second LPG exporter in the world has decided, in line with its strategy, to acquire a modern fleet allowing it to cover the transport needs of at least 50% of its exports as well as enhance its market share.

On 17 September 2004, two of three carriers ordered will be officially delivered to Sonatrach in Sakaide, Japan. With a capacity of 59 000m³ of refrigerated LPG each and complying with all the norms established by the new regulations and international maritime institutions in terms of safety and protection of the environment, the “Alrar” and the “Rhourd Enouss” are considered to be a part of a modern generation of carriers.

The “Alrar” should arrive in Bethioua (Arzew) in mid- October whereas the “Rhourd Enouss” will depart from the Japanese shipyard on 7 December 2004 and reach the same destination in January 2005. The third carrier the “Hassi Messaoud II” is actually in the process of being assembled and will be delivered in Sakaide around the end of February 2005.

Thus, through Sonatrach Petroleum Corporation BVI, its trading and shipping subsidiary which already owns four (04) LPG carriers, Sonatrach will see its fleet increase to seven (7) ships by early 2005, with a transport capacity of about 410 000m³.

One should remember that these acquisitions took place following an international tender and a public opening of the bids which was held in Algiers on 2^nd October 2002 in line with the well established Sonatrach Group procedure of allocating contracts. The order for three carriers went to the Japanese company Kawasaki Shipbuilding Co. for a total amount of US$150,000,000, 30% of which were met by Sonatrach Petroleum Corporation  from its own funds and 70% by a pool of international banks led by BNP Paribas Geneva. The financing terms are considered satisfactory as they are not conditional upon any contribution or financial guarantee from the parent company and the loan negotiated is spread over ten years from the date of delivery of the last LPG Carrier. As with the acquisition contract, the financing went through a tender procedure and a public opening of the bids which was held in London on 6 October 2003.

These acquisitions will allow the Sonatrach Group to enhance its position as world leader in LPG trading and will also allow Sonatrach Petroleum Corporation BVI to strengthen its position as a major player in the international markets of LPG trading and shipping.