PNG LNG Project Approves EPC Contract With CB&I Joint Venture for Gas Plant in Papua New Guinea

CB&I (NYSE:CBI) announced today the approval by Esso Highlands Limited of a contract with CB&I in its joint venture with Clough, for the engineering, procurement and construction of the PNG LNG Project’s gas conditioning plant, pending final project authorizations. The estimated value of the contract is in excess of $1 billion. Esso Highlands, a subsidiary of Exxon Mobil Corporation, is the operator of the PNG LNG Project.

The contract scope includes the EPC work for the gas conditioning plant, nearby wellheads and associated piping and infrastructure, to be located in the Southern Highlands of Papua New Guinea. The work will be performed by CBI Clough JV, a joint venture between CB&I (65%) and Clough (35%). CBI Clough JV expects approximately 1,200 workers to be employed on this work during peak construction.

"We are pleased to support this important project that builds on our successful history in Papua New Guinea, and further broadens the diversity of our backlog in terms of geography, project size and end markets, which will serve us well going into 2010 and beyond,” said Philip K. Asherman, CB&I President and CEO.

The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facilities. Participating interests are affiliates of Exxon Mobil Corporation (including Esso Highlands Limited as operator, 33.2 percent), Oil Search Limited (29.0 percent), Independent Public Business Corporation (PNG Government, 16.6 percent), Santos Limited (13.5 percent), Nippon Oil Exploration (4.7 percent), Mineral Resources Development Company (PNG landowners, 2.8 percent) and Petromin PNG Holdings Limited (0.2 percent).

About CB&I

CB&I designs, engineers and constructs some of the world’s largest energy infrastructure projects, providing a full spectrum of EPC solutions and proven process technologies. Drawing upon more than a century of experience and the expertise of approximately 17,000 employees worldwide, CB&I safely and reliably executes more than 600 projects a year through its three business sectors: CB&I Lummus builds upstream and downstream oil & gas projects, LNG liquefaction and regasification terminals, and a wide range of other energy related projects; CB&I Steel Plate Structures designs, fabricates and constructs storage tanks and containment vessels and their associated systems for the oil & gas, water & wastewater, mining and nuclear industries; Lummus Technology capitalizes on more than 1,500 patents and patent applications to provide process technologies and catalysts for petrochemical facilities, oil refineries and gas processing plants. For more information, visit www.CBI.com or access technical details at Lummus Technology Fact Sheets. If you would like to be added to CB&I’s news release email distribution list, visit www.cbi.com/ir/news.htm.

About Clough

Clough delivers an integrated Engineering, Procurement and Construction service to projects in the oil and gas, mineral and infrastructure sectors in Australia and across South East Asia. The Group's services range from concept development through design, construction, installation, commissioning, operations and maintenance. Clough deploys a first class suite of integrated management systems and is committed to the concept of zero harm and the wellbeing of employees and to the sustainability of the environment and communities in which the company works.