28 June 2000

BP Amoco has selected Nikiski, Alaska as the site of a facility to test its gas-to-liquids (GTL) technology designed to convert methane gas into synthetic crude oil. The GTL technology is one of a number of options the company is exploring as it seeks to make large-scale North Slope gas sales commercial.

BP Amoco is planning to begin site preparation in the Autumn of 2000 and construction on the process unit of the $86 million facility in early 2001. An estimated 200 workers will be involved during construction.

The test facility will convert about three million cubic feet of natural gas into an estimated 300 barrels of synthetic crude a day. The facility is scheduled to begin operations during the second quarter of 2002.

The compact reformer syngas technology that will be tested has been developed over the past few years at BP Amoco’s Warrensville (Ohio) and Sunbury (UK) research centers, in collaboration with Kvaerner Process Technology Limited, a member of the Kvaerner group, one of the world’s largest engineering contractors.

“Demonstrating this technology will be an important step towards a commercial scale GTL application that could have applications in Alaska, as well as elsewhere in the world,” said Ken Konrad, business unit leader for BP Exploration’s Alaska Gas Group.

Further inquiries: Carla Beam, BP Exploration, Alaska +1 907 564 5484

Source: BP Amoco