Joint Press Release ENEL – Nigeria LNG

Nigeria LNG and ENEL have today signed an unconditional Revised Sales and Purchase Agreement (SPA) by which 3.5 Bcm per year of natural gas will be delivered by NLNG to ENEL in the LNG Receiving Facilities of Montoir de Bretagne which is owned by Gaz de France.

Such delivery is contemplated to begin in October 1999 and shall continue for 22.5 years.

ENEL will receive the equivalent of gas in Italy, following appropriate swaps with third parties.

The Revised SPA supersedes the earlier agreement between NLNG and ENEL dated May 11, 1992.

In addition to the above, NLNG and ENEL have signed an agreement by which the Arbitration Proceedings – commenced in December 1996 – will be discontinued with immediate effect.

That Arbitration was started by NLNG under the earlier agreement between NLNG and ENEL.

NLNG and ENEL are fully committed to the success of this long term contract.

December 31, 1997