NLNG Completes Initial Supply Period Successfully

With the sailing of the 19^th cargo aboard LNG Finima on Wednesday 29^th March 2000 at 10.30 a.m., Nigeria LNG has successfully achieved its contractual obligations under the Initial Supply Period, 5 days ahead of schedule.

The contractual obligations on Nigeria LNG during the "Initial Supply Period" (ISP) lasting from 1^st October 1999 till 31^st March 2000, was to produce and rundown into storage, approximately 1.1 million tons of LNG. This was achieved on Sunday March 26^th.

Under the terms of the LNG Sales and Purchase Agreements the ISP is now complete and from Friday April 1^st 2000 the "Build Up Period" (BUP) will commence. The BUP requires Nigeria LNG to load 45 cargoes over a 6 month period ending on 30^th September 2000.

The Company's Managing Director Mr Andrew Jamieson said this milestone was achieved as a result of the zeal and commitment of the entire NLNG workforce, tremendous support from the Shareholders and cooperation form host communities. He further pointed out that achieving a major milestone like ISP, which is critical to any LNG business, confirms the company's capability to run and manage a world class operation. Mr Jamieson also expressed the company's appreciated to the President of the Federal Republic of Nigeria, Chief Olusegun Obasanjo for his encouragement and special interest during the Initial Supply Period.

Production of LNG started at the Bonny Island plant on 15^th September 1999. On the 9^th of October the company exported 1^st LNG cargo to Enel of Italy which was delivered at LNG receiving terminal in Montoir, France. During the Initial Supply Period, LNG cargoes were delivered to ENAGAS of Spain, TRANSGAS of Portugal, BOTAS of Turkey and GAZ de France.

Nigeria LNG Limited was incorporated on May 17 1989 with the following shareholding structure: Nigerian National Petroleum Corporation (NNPC) 49.00%, Shell 25.6%, Elf 15.0%, Agip 10.4%. The mission of the company is "To produce and export LNG and NGLs safely, reliably and profitably, and to grow the business to its full potential, helping to put out the flares in Nigeria."