press release

Clough Awarded $80M Contracts In Third And Fourth Returns From Thai Alliance

The following news release was issued by Clough

Perth, Western Australia, May 27, 2002 -- Through its strategic alliance with Unocal Thailand, Ltd. and Unithai Shipyard and Engineering Limited, the Clough Group has been awarded its third and fourth tranche of contracts to design and build wellhead platforms and subsea pipelines for Unocal Thailand in the Gulf of Thailand.

These contracts have been awarded to Clough-Unithai Engineering Limited (CUEL), the thirty-three percent (33%) Clough-owned joint venture company set up to execute the Unocal Thailand work and, in total, is worth A$80 million to Clough.

In October 2000, Clough was awarded its first tranche of three contracts worth A$68.4 million under an evergreen contract (announced in July 2000) for the joint venture to undertake all Unocal Thailand offshore gas field wellhead and pipeline development work in the Gulf of Thailand. The second tranche of contracts in April 2001 was worth A$51 million.

The scope of the new works for Unocal Thailand, known as Phase 23 - which has commenced - and Phase 24 - which is to commence immediately - includes the engineering, procurement, construction and installation of a total of 13 wellhead platforms and associated subsea pipelines.

"We continue to see upside in the potential for more new contracts in the oil and gas sector as oil prices continue to stay above the US$20 mark," Dr Brian Hewitt, Managing Director of Clough Limited, said.

Under the "UCU Alliance", Clough Thailand and leading local fabrication company Unithai Shipyard and Engineering Ltd formed a joint venture, Clough-Unithai Engineering Limited (CUEL), to construct and install wellhead platforms and submarine pipelines for Unocal Thailand's extensive Gulf of Thailand operations.

CUEL's onshore construction operations are located in Unithai's shipyard, which is the largest offshore fabrication centre in Thailand. The centre, which is strategically located at the port of Laem Chabang in the country's eastern seaboard industrial zone, is one of the most modern and well-equipped in the region and able to service all offshore facilities in the Gulf of Thailand.

Unocal Thailand is the largest oil and gas producer in Thailand, with concession areas in the Gulf of Thailand. It is a wholly owned subsidiary of Unocal Corporation, which is one of the largest global independent energy companies and is involved in the exploration and production of crude oil and natural gas and power plant developments in 14 countries (see: www.unocal.com).

Clough Engineering is one of Australia's largest multi-disciplinary engineering and construction groups. Clough operates globally in a diversity of industry sectors such as onshore and offshore oil and gas, petrochemicals, mining, infrastructure and manufacturing. Clough owns an offshore fleet and associated equipment and has specialist skills in project management and offshore engineering and construction.

Updated: May 2002