The Shaw Group Inc.

The Shaw Group Inc.

March 22, 2005 09:54 ET

Shaw to Provide Deep Catalytic Cracking Technology for Aramco's Rabigh Petrochemical Project in Saudi Arabia


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: THE SHAW GROUP INC.

NYSE SYMBOL: SGR

MARCH 22, 2005 - 09:54 ET

Shaw to Provide Deep Catalytic Cracking Technology for
Aramco's Rabigh Petrochemical Project in Saudi Arabia

BATON ROUGE, La.--(CCNMatthews - Mar 22, 2005) -

The Shaw Group Inc. (NYSE:SGR) today announced that its Shaw Stone &
Webster, Inc. unit has been selected by Aramco Overseas Company and
Sumitomo Chemical Co., Ltd. to provide Deep Catalytic Cracking (DCC)
technology for a grassroots High Olefin Fluid Catalytic Cracking (HOFCC)
project at Saudi Aramco's Rabigh petrochemical complex in Saudi Arabia.
DCC technology, originally developed by the Research Institute of
Petroleum Processing and Sinopec (NYSE:SNP) (the national oil company of
the People's Republic of China), is a proprietary technology for the
production of propylene and ethylene. Shaw's Stone & Webster unit is the
only licensed provider of DCC technology outside of China.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said,
"We are very pleased that Saudi Aramco and Sumitomo have selected Shaw
and DCC technology as the cornerstone for their $4.3 billion grassroots
Rabigh refining and petrochemical complex in Saudi Arabia. We believe
that DCC technology is the best solution for producing ethylene and
propylene from vacuum gas oils, from both a cost and product efficiency
standpoint. We look forward to furthering our strategic relationship
with these highly respected clients."

Saudi Aramco and Sumitomo Chemical have signed a memorandum of
understanding for the Rabigh upgrade and expansion project. This project
represents Saudi Aramco's first venture in petrochemical processing. The
Saudi Aramco-Sumitomo Rabigh project will be a fully integrated
petrochemical refinery with HOFCC producing 900,000 tons per year of
propylene and 1,300,000 tons per year ethylene.

Aramco Overseas Company is a division of Saudi Aramco, the national oil
and gas company of Saudi Arabia. Sumitomo Chemical Co., Ltd. is one of
Japan's largest chemical companies with approximately one-third of its
sales from petrochemical products such as polyethylene, polypropylene,
elastomers and styrene monomer. Sumitomo's diverse product range also
extends to IT-related chemicals, pharmaceuticals, agricultural chemical,
and basic industrial chemicals such as caustic soda and methanol.

The Shaw Group Inc. is a leading global provider of technology,
engineering, procurement, construction, maintenance, fabrication,
manufacturing, consulting, remediation, and facilities management
services for energy, process, power, environmental, infrastructure and
emergency response markets. A Fortune 500 company with over $3 billion
in revenues, Shaw is headquartered in Baton Rouge, Louisiana, and
employs approximately 18,000 people at its offices and operations in
North America, South America, Europe, the Middle East and the
Asia-Pacific region. For further information, please visit the Company's
website at www.shawgrp.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking statements. The statements contained
herein that are not historical facts (including without limitation
statements to the effect that the Company or its management "believes,"
"expects," "anticipates," "plans," or other similar expressions) and
statements related to revenues, earnings, backlog, or other financial
information or results are forward-looking statements based on the
Company's current expectations and beliefs concerning future
developments and their potential effects on the Company. There can be no
assurance that future developments affecting the Company will be those
anticipated by the Company. These forward-looking statements involve
significant risks and uncertainties (some of which are beyond our
control) and assumptions and are subject to change based upon various
factors. Should one or more of such risks or uncertainties materialize,
or should any of our assumptions prove incorrect, actual results may
vary in material respects from those projected in the forward-looking
statements. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. A description of some of the
risks and uncertainties that could cause actual results to differ
materially from such forward-looking statements can be found in the
Company's reports and registration statements filed with the Securities
and Exchange Commission, including its Form 10-K and Form 10-Q reports,
and on the Company's website under the heading "Forward-Looking
Statements". These documents are also available from the Securities and
Exchange Commission or from the Investor Relations department of Shaw.
For more information on the company and announcements it makes from time
to time on a regional basis visit our website at www.shawgrp.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    The Shaw Group Inc., Baton Rouge
    Chris D. Sammons, 225-932-2546