Lisbon, Portugal

Nigeria LNG Limited today signed a Sale and Purchase Agreement (SPA) with TRANSGAS of Portugal.

With this agreement Nigeria LNG will supply 0.35 billion cubic metres of Liquified Natural Gas annually to TRANSGAS via the receiving facilities of ENAGAS in Spain for onward transportation by pipeline to Portugal. Delivery will commence at the start up of Nigeria LNG's plant in Bonny, during the 4^th quarter of 1999.

The TRANSGAS volume represents 5% of the total volume of gas expected to be produced from Nigeria LNG's Two-Train Liquefaction plant. The contract spans 22.5 years effective October 1999.

June 26, 1998