PRESS RELEASE (17/12/2003)

OMAN METHANOL PROJECT

Sohar Methanol Project is all set to become a reality. The Project is being implemented through Oman Methanol Company L.L.C. (OMC) which has Oman Methanol Holding Company L.L.C. (OMHC) {30%}; Methanol Holding (Trinidad) Limited, Trinidad and Tobago (MHTL) {50%}, and Ferrostaal AG, Germany (FS) {20%} as its Partners.

H.E. Dr. Omar Zawawi, owner of OMHC, Mr. Lawrence Duprey, Chairman of MHTL and
Dr.-Ing. Axel Wippermann, Executive Board Member & Mr. Erwin Keutner, Director of FS, today signed a Joint Venture Agreement and a Constitutive Contract on behalf of their respective companies to form and register OMC. The signing ceremony was held in Oman, at the residence of H.E. Dr. Omar Zawawi, in the presence of H.E. Maqbool Bin Ali bin Sultan, Minister of Commerce and Industry; H.E. Dr. Mohammed Bin Hamad bin Saif Al-Romhi, Minister of Oil and Gas; H.E. Mohammed Nasser Al-Khussaibi, Secretary General, Ministry of National Economy, of the Sultanate of Oman; H.E. Hartmut Blankenstein, the Ambassador of the Federal Republic of Germany to Oman; Mr. Ali bin Thabit Al-Batashi, Director General, Planning and Projects, Ministry of Oil & Gas; Mr. Ahmed S. Al-Wahaibi Deputy CEO of Oman Oil Company and
Mr. Jan H. Meijer, CEO & Mr. Jamal T. Aziz Deputy CEO of Sohar Industrial Port Company.

The senior executives of the Partners of OMC, the representatives of Helm AG, the Product off-taker; KFW, the proposed lender to the project; PROMAN AG, the Construction Contractor; and Industrial Plant Services Limited, O&M contractor were also present.

Ferrostaal AG, in addition to being a partner of OMC, is the General Contractor for the project. Ferrostaal is known for constructing, in a timely manner, technically sound and reliable methanol plants.

The Project of 5,000 tonne per day will be implemented in a phased manner. The first phase is to construct a plant with a production capacity in the magnitude of 2,500 TPD to 3,000 using ICI technology with an investment in excess of US$400millions. Promoters expect financial close for the first phase early in third quarter of 2004 and project completion by end of 2006. The partners intend to commence the implementation of the second phase, within two years from the financial close of the first phase.

The project has all the ingredients of being a great success. It has the backing of the OMZEST Group of H.E. Dr Omar Zawawi; MHTL, which already owns four methanol plants in Trinidad and Tobago and is in the process of constructing the world’s largest methanol plant with a production capacity of 5400 tonne per day; and Ferrostaal, a worldwide experienced project developer and contractor with the backing of the MAN Group.

On this occasion H.E. Dr. Omar Zawawi said, “We do hope that we will achieve our targets of producing a top quality product before December 2006. We are fortunate to have such world class partners and with God’s will and Blessing we pray that we succeed and contribute to the economy of the Sultanate of Oman”

During the press conference held later in the day Mr. Lawrence Duprey, CMT, Mr. K S Cheema and Dr. Ing. Axel Wippermann Directors of OMC briefed the press.