VLCC Joint Venture

On Tuesday 13th June 2006 Sonatrach Petroleum Corporation BVI and Kawasaki Shipbuilding Corporation signed the Shareholders Agreement of the Joint Venture named New Ocean Shipping Venture Ltd (NOVSL) in the presence of Mr Mohamed Meziane, President and CEO of Sonatrach. New Ocean Shipping Venture Ltd is owned 50/50% by Sonatrach Petroleum Corporation and Kawasaki Shipbuilding Corporation.

This Joint Venture also signed on the same day, the shipbuilding contract for the first time in partnership, for one VLCC (very large crude carrier) for the transport of crude oil. This ship will have a capacity of 315,000MT and is the 1st crude oil ship ordered by SPC BVI which will be built in China by Nacks Shipyard (owned by Kawasaki and COSCO) which is the largest Shipyard in the world.

This ship will cost US$120 million to be financed for 80% by the Banks and 20% by the Shareholders  SPC BVI and KSC.

The construction of this VLCC is scheduled to begin in February 2007 with delivery due by the end of December 2007. The fleet of SPC BVI presently consists of 6 LPG Ships of which 5 were built by Kawasaki. With this new acquisition, Sonatrach will confirm its ambition to transport 35% of its exports with its own Ships by 2010 and 50% by 2015.