NESTE OIL, TAKREER, AND OMV SIGN HEADS OF TERMS FOR BASE OIL PLANT IN ABU DHABI

12/17/2007, 9:30 AM (Source: GlobeNewswire)



Neste Oil of Finland, Takreer of Abu Dhabi, and the Austrian oil and
gas group OMV are proceeding with their plans to form a joint venture
company and build a plant to produce sulfur-free, Very High Viscosity
Index (VHVI) Group III base oil at Ruwais, Abu Dhabi. The parties
have signed the Heads of Terms agreement in Abu Dhabi, covering the
basic principles for the design, construction, and operation of the
facility and the commercial terms of the project. The joint-venture
company will be 60% owned by Takreer and 20% by Neste Oil and OMV
each.

The planned facility will be capable of producing 500,000 tons a year
of base oils used for blending top-tier lubricants. Feedstock for the
base oil facility will be provided from Takreer's hydrocracker unit.
Neste Oil will bring technology and production know-how and will
initially be responsible for marketing the products. OMV will bring
know-how in base oil blending and marketing experience.

The Front End Engineering Design (FEED) of the project is expected to
commence by the second quarter of 2008. The final investment decision
will be made later, based on the investment cost estimates obtained
during the FEED phase.

Demand for high-performance, sulfur-free base oils is increasing
globally due to their ability to meet current and future performance
requirements and more stringent environmental standards.

Takreer is a refining company with an overall crude and condensate
processing capacity of about 500,000 barrels per day. With its
fundamental strength in oil refining, Takreer is now working on
expanding its activities in the downstream sector to identify and
deploy products and process technologies that would provide a
competitive edge. With a vision to become a leading diversified oil
refining company, Takreer is now interested in expanding its product
portfolio into the production of high-quality base oils.

Neste Oil, headquartered in Espoo, Finland, is refining and marketing
company focused on advanced, clean traffic fuels with a strategy that
prioritizes growing its refining and premium- quality biodiesel
businesses. Neste Oil has a total refining capacity of approximately
250,000 barrels a day; and is an industry leader in manufacturing and
marketing Very High Viscosity Index (VHVI) base oils under its
Nexbase brand.

OMV is the largest listed industrial company in Austria with more
than 26 million metric tons of annual oil refining capacity and a
retail network of more than 2,500 filling stations in 13 countries.
OMV sells more than 14 BCM of gas a year. With the acquisition of a
majority stake in Petrom of Romania, OMV has become the largest oil
and gas group in Central Europe. OMV is active in refining and
marketing in 13 countries, and in exploration and production in 20
countries and on five continents.

The project combines the strengths of all three parties in the
design, production, and marketing of high-performance base oils.

Neste Oil's other project to increase base oil production in Bahrain
is also progressing.


Neste Oil Corporation
Osmo Kammonen
Senior Vice President

Further information at Neste Oil
Mr Kimmo Rahkamo, Executive Vice President, Specialty Products, tel.
+358 50 458 4247
Mr Matti Lehmus, Vice President, Base Oils, tel. +358 50 458 4072



Neste Oil in brief

Neste Oil Corporation is a refining and marketing company focused on
advanced, clean traffic fuels, with a strategy that prioritizes
growing its refining and premium-quality biodiesel businesses. Neste
Oil's refineries are located at Porvoo and Naantali in Finland, and
have a total refining capacity of approx. 250,000 bbl/d. The company
employs around 4,800 people and its shares are listed on the Helsinki
Stock Exchange. For further information, see www.nesteoil.com.


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