In relation to the announcement dated July 22, 2011 concerning the Fuel Oil Conversion Project (Residuum Upgrading Project), an Addendum to the contract has been signed on July 28th, in keeping with the terms previously outlined. The contract will come into force on the date at which the financing agreement is signed, and the $ 2,382.5 million investment is expected to be completed 36 months after commencement of construction.
The project will be financed largely under the insurance coverage of Spanish and Italian Export Credit Agencies. We have been informed that the boards of directors of the Spanish Export Credit Agency CESCE and the Italian Export Credit Agency SACE have approved insurance coverage for export credits for a total amount of $ 1,723 million plus insurance premium and interest during the construction period associated with those credits, with a four year grace period, and a maximum tenor of 14 years. The terms referred to above are the longest tenor and maximum coverage available, but may be reduced, should the company wish to do so. Negotiations concerning both the CESCE & SACE covered loans, and the tied commercial loan are continuing. Following signing of the loan agreement, the company will make the relevant announcements to the investment community.