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2003 Press Releases-15

Tokyo, Japan - August 27, 2003

Yokogawa Wins Contract to Provide Measurement and Control Facilities
for Large Crude Oil and Natural Gas Development Project in Sakhalin


 Yokogawa Electric Corporation announces that it has been awarded a contract to supply the complete downstream measurement and control facilities for the Sakhalin II crude oil and natural gas development project in the Sakhalin Region of the Russian Far East. The contract was awarded by Chiyotec Limited, a joint venture between Chiyoda Corporation and Toyo Engineering Corporation. Under the contract, Yokogawa will deliver monitoring and control systems, its Plant Resource Manager plant asset management package and other systems for a natural gas liquefaction plant and crude oil shipment facilities which will be constructed as part of the Sakhalin II project in the Prigorodnoye area of southern Sakhalin.
 Sakhalin II is a very large energy development project, with a total budget of US$10 billion. The project is being led by Sakhalin Energy Investment Company Ltd., a joint venture between the Royal Dutch/Shell Group, Mitsui & Co., Ltd., and Mitsubishi Corporation. With the conclusion of a series of contracts with commercial-scale utility customers, implementation of the project has been formally initiated.
 The crude oil and natural gas produced in northern Sakhalin will be transported through pipelines to southern Sakhalin. There the crude oil will be shipped to utility customers from a crude oil shipment facility and the gas will be converted to liquefied natural gas (LNG) at an LNG production facility that will be the largest of its kind in the world, with two liquefaction trains that will have a combined annual production capacity of 9.6 million tons. Another world first for this LNG plant is that it will be the first such facility to implement the latest FOUNDATION Fieldbus technology on a full scale. This plant is scheduled to begin operation in 2007.
 One major reason why Yokogawa has won this project for the measurement and control facilities is the excellent reputation that its fieldbus technology has won over the years. Yokogawa has earned the trust of its customers thanks to the proven track record of its fieldbus products in large-scale plants, as well as its project implementation capabilities.
 Teruyoshi Minaki, a member of the Yokogawa Board of Directors and Executive Vice President of the International Business Headquarters says "With development planned for nine fields, Sakhalin is a very promising market. The current contract is a highly significant milestone for us to further solidify our presence in that market. We are firmly committed to strengthening and enhancing our support structure there. With award of this Sakhalin II downstream project Yokogawa surely takes steps to set up local support base in Sakhalin island for training, commissioning and maintenance work, involving Russian resources which will contribute to both business and the community."
 Encouraged by this success, Yokogawa is making every effort to win additional contracts for upstream facilities such as crude oil and natural gas production platforms at the drilling sites, ground processing facilities and pipelines.



About Yokogawa
Yokogawa's global network of 19 manufacturing facilities and 89 companies spans 32 countries. Since its founding in 1915, the US$4 billion company has been engaged in cutting-edge research and innovation, securing more than 7,500 patents and registrations, including the world's first digital sensors for flow and pressure measurement. Industrial automation and control, test and measurement, information systems and industry support are the core businesses of Yokogawa.
For more information about Yokogawa, please visit our web site at www.yokogawa.com.

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