Client News- GATEWAY GAS STORAGE SECURES NEW INVESTOR: PETROFAC ACQUIRES 20% INTEREST

Gateway Storage Company Ltd, the developer of the 1.5bn cubic metre salt cavern gas storage facility in the East Irish Sea, is pleased to announce that Petrofac, the international oil & gas facilities service provider, has acquired a 20% interest in the company.

Petrofac will join Gateway as the technical project operator and will be jointly responsible for developing the project ahead of a Final Investment Decision next year (2011). Petrofac will be represented on the Gateway Board. The company’s investment in Gateway is based on a cash consideration of up to £33million over time, funded from cash resources. This is split into a fixed upfront payment and additional contingent payments subject to key project development milestones being achieved, including the outcome of a further successful equity sales process.

The front end engineering and design (FEED) phase of the project is nearing completion and the focus of Gateway Storage will now turn to project execution and finalisation of the consortium of storage capacity holders and investors. Gateway Storage is targeting 2016 for the commencement of storage services to the UK energy market.

When built, Gateway Storage will be one of the UK’s largest salt cavern storage facilities and will add nearly 30% to the current gas storage capacity in the UK market. It secured the UK Department of Energy & Climate Change’s first ever Storage Licence in February 2010 after obtaining the main planning and environmental consents and permits in late 2008.

George Grant, Chairman of Gateway Storage Company Ltd said: “Gateway is the most advanced gas storage project in the UK that has not yet committed to construction, so we are delighted to have an organisation with the execution and operational track record of Petrofac to take the project forward through to financing and into construction. As one of the world’s leading service providers to the oil and gas industries, Petrofac’s experience will be invaluable in realising the project’s significant and strategic benefits to the UK and Irish energy markets.”

Rob Jewkes, Managing Director, Petrofac Energy Developments commented: “Petrofac is pleased to join with Gateway to progress this strategically important and well advanced storage project. With FEED activities largely complete, we are entering the project at this stage to bring confidence to the investor group that execution and delivery objectives for the complete facilities can be met, and will utilise the full capabilities of our group to optimise the facility design and deliver the project.”

For further information contact:

Gateway Storage Company Ltd (www.gatewaystorage.co.uk)

George Grant, Chairman +44 (0)131 550 3380

ggrant@stagenergy.com

Paul Taylor (Taylor Keogh Communications) +44 (0)203 170 8465 / 07966 782611

paul@taylorkeogh.com

Petrofac

Tulchan Communications Group Ltd +44 (0)20 7353 4200

James Bradley

David Allchurch

petrofac@tulchangroup.com

Notes to Editors

Gateway Storage (www.gatewaystorage.co.uk)

Gateway Storage Company Limited plans to build an underground natural gas storage facility in the East Irish Sea, approximately 25 km (15 miles) offshore, south west of Barrow-in-Furness. Storage caverns will be developed in a natural salt structure below the seabed and will enable gas to be delivered, stored and then returned to the UK’s national transmission system.

The offshore facility will provide a significant boost to the security of energy supply in the UK gas market and will help to meet the strategic energy policy objectives of the UK government. When completed, the caverns will have a working capacity of 1.5 billion standard cubic metres (~560 million therms), adding nearly 30% to the current gas storage capacity in the UK market.

Gateway Storage is a company that was formed to develop the gas storage project and is managed by Stag Energy. Stag Energy (www.stagenergy.com) is an independent company, headquartered in Edinburgh. The company, established in 2002, has extensive experience of managing the development, construction and operations of gas storage and power generation projects in the UK and overseas.

Petrofac (www.petrofac.com)

Petrofac is a leading international provider of facilities solutions to the oil & gas production and processing industry, with a diverse customer portfolio including many of the world’s leading integrated, independent and national oil & gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) and is a constituent of the FTSE 100 Index.

The group delivers services through seven business units: Engineering & Construction, Engineering & Construction Ventures, Engineering Services, Offshore Engineering & Operations, Training Services, Production Solutions and Energy Developments.

Through these businesses Petrofac designs and builds oil & gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac’s range of services meets its customers’ needs across the full life cycle of oil & gas assets.

With around 12,500 employees, Petrofac operates out of six strategically located operational centres, in Aberdeen, Sharjah, Woking, Chennai, Mumbai and Abu Dhabi and a further 19 offices worldwide. The predominant focus of Petrofac’s business is on the UK Continental Shelf (UKCS), the Middle East and Africa, the Commonwealth of Independent States (CIS) and the Asia Pacific region.

Client News-MARINE CURRENT TURBINES AIMING FOR FIRST TIDAL ENERGY FARM IN SCOTLAND BY 2013

UK tidal energy company, Marine Current Turbines, is targeting 2013 to install Scotland’s first tidal energy farm. The company, which designed and deployed the world’s first commercial scale offshore tidal stream energy system in Northern Ireland’s Strangford Lough, is investigating the feasibility of a tidal farm in Kyle Rhea, a strait of water between the Isle of Skye and the Scottish mainland.

The project will have the capacity to generate electricity for up to 4,000 homes in the Highlands & Islands by harnessing the power of the fast tidal currents that pass through Kyle Rhea 14 hours a day. It will also give a multi-million pound boost to the Highlands & Islands economy as local businesses can expect to participate in the tidal farm’s installation, operation and maintenance.

The development of the project is subject to securing a lease agreement from The Crown Estate, securing planning approval from Marine Scotland (part of the Scottish Government) and raising the finance for the project. Marine Current Turbines (MCT) estimates that the cost of the 5MW Kyle Rhea scheme, consisting of four SeaGen tidal units, will be £35million.

For the past nine months, MCT has undertaken a series of environmental and technical studies and consulted a range of local and national organisations. The work to date has confirmed the suitability of the site and subject to further studies being carried out and further consultations, MCT aims to submit a planning application towards the end of next year (2011).

MCT, with the support of the environmental consultancy Royal Haskoning (based in Edinburgh), has already consulted a range of organisations about its plans including the Highland Council and local councillors, Marine Scotland, the Maritime & Coastguard Agency, the Northern Lighthouse Board, the RSPB, the Scottish Wildlife Trust, the Glenelg and Arnisdale Development Trust and the RNLI based at Kyle of Lochalsh.

David Ainsworth, MCT’s Project Manager for the Kyle Rhea project, said: “Engagement with local interests is an important part of our work and so far the response to our plans has been generally positive. Our experience of working in Strangford Lough has been hugely valuable in taking forward our plans for Kyle Rhea, and has helped assure people about the impacts of deploying our technology.

Next year, we will hold a public exhibition in Glenelg before our planning application is finalised to give local people the opportunity to find out more about the project and the benefits that it will bring.”

If the Kyle Rhea tidal project is approved and financed, the scheme will not only generate clean energy but also give local firms the chance to be involved in the tidal farm’s installation and operation. In Northern Ireland, a number of local companies such as marine support vessels, engineering and electrical contractors, civil engineers, environmental scientists and divers as well as local hotels, pubs and restaurants have benefited from MCT’s Strangford Lough project. It is estimated that the project has contributed more than £4million into the Northern Irish economy over the past three years.

As well as retaining the services of Royal Haskoning (with regard to consultations with the regulatory authorities and the environmental studies), other Scottish firms that have been being involved in the project to date are the Aberdeen office of Partrac and SMRU Ltd based in St Andrews. Scotland’s Burntisland Fabrications constructed the quadropod structure that supports the single SeaGen in Strangford Lough.