PRESS RELEASE 16th JUNE 2003 APPROVAL OF BIOKO LNG PROJECT REPUBLIC OF EQUATORIAL GUINEA On behalf of the Government of the Republic of Equatorial Guinea, the Ministry of Mines and Energy is pleased to announce the approval of the Bioko LNG project. An understanding has been reached between Marathon Oil, GEPetrol (the national oil company of Equatorial Guinea) and the Republic of Equatorial Guinea, in which Marathon and GEPetrol are granted the right to build and operate a liquefied natural gas (LNG) plant in the Republic. The plant will be constructed at the Punto Europa site in the northern part of Bioko island. This major project is the latest and largest of a number of gas monetisation projects at Punta Europa that will maximise the benefits of gas production in Equatorial Guinea and minimise flaring. Input to the new plant will come from the Alba Field, operated by Marathon, where production will be increased to 800 MMCFD. Marathon has signed a letter of understanding (LOU) with British Gas (BG) to supply output from the LNG plant into the US market. Under the terms of the LOU, BG will purchase 3.4 million metric tons per year of LNG for a period of 17 years beginning in 2007, when the plant is expected to begin operations. Engineering design for the LNG plant is underway and it is expected that constracting will commence in 2004. The Alba field offshore Equatorial Guinea and surrounding offshore areas hold significant gas reserves, and the Government expects that expansion of the Bioko LNG plant will provide the basis for a regional gas hub to develop stranded gas and flared gas in this area .