El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy International Awarded Bid to Construct PIGAP II Gas Injection Project in Venezuela
Houston, Texas, November 5, 1998-El Paso Energy International Company, a business unit of El Paso Energy
Corporation (NYSE:EPG), announced today that its consortium won the bid to construct the
PIGAP II high pressure natural gas injection facility located in Venezuela.
The $400 million PIGAP II project will be the world's largest natural gas
compression facility with 308,000 horsepower compressing up to 1.5 billion cubic feet per
day. The compressed gas will be delivered to Petroleos de Venezuela (PDVSA) under a
20-year contract and will be used for the secondary recovery of crude oil from the Santa
Barbara/Pirital crude oil fields. Construction is expected to begin in the second quarter
of 1999, with initial operations commencing in the fourth quarter of 2000.
El Paso Energy International holds a 50 percent interest in the project, while
partners GE Capital and Nissho Iwai each hold 25 percent interests.
"We are pleased that PDVSA awarded the PIGAP II project to our consortium. The
project will extend the productive life of the Santa Barbara/Pirital oil fields by
approximately 1.3 billion barrels of light crude oil and condensates over the next forty
years," said John Hushon, president, El Paso Energy International.
"Venezuela is a key energy producer, and the PIGAP project represents our first
opportunity to invest in this important country."
With over $10 billion in assets, El Paso Energy Corporation provides energy
solutions through five business units: Tennessee Gas Pipeline Company, El Paso
Natural Gas Company, El Paso Field Services Company, El Paso Energy Marketing
Company, and El Paso Energy International Company. The company owns the nation's
only integrated coast-to-coast natural gas pipeline system and has operations in
interstate natural gas transmission, gas gathering and processing, energy marketing, and
international infrastructure development.
This release includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The companies have made every reasonable effort to ensure that the information and
assumptions on which these statements and projections are based are current, reasonable,
and complete. However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other expectations expressed in
this release. While the companies make these statements and projections in good faith,
neither the companies nor their managements can guarantee that the anticipated future
results will be achieved. Reference should be made to the companies' (and their
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.