Joint press release of ENEL SPA AND Nigeria LNG Limited

ENEL and NLNG have today signed a Memorandum of Understanding (M.O.U) which sets out the principles to resolve the arbitration between the two companies.

The international arbitration which is presently on-going in Geneva was originated as a consequence of the non-realisation in Italy of the re-gasifiction terminal necessary for delivery of 3.5 b.c.m. per year of Nigerian liquified natural gas in accordance with the terms of the contract executed in 1992 between ENEL and NLNG. Such delivery was contemplated to begin in October 1999.

The M.O.U. sets out that NLNG will deliver the above volumes of gas at the terminal of Montoir de Bretagne, which is owned by Gas de France within the terms and in the amounts contractually agreed. The gas will be conveyed to ENEL's power plant through appropriate swaps.

The M.O.U. also contemplates that by 31^st December 1997, the parties will sign a detailed agreement, which will end with immediate effect the arbitration proceedings.

September 26, 1997