Venezuela

Firmly established in Venezuela as a world-class operator and innovative technological leader, many of Williams' core competencies in gathering and processing, compression recovery, and pipeline operations are represented in Venezuela. Williams works closely with Petroleos de Venezuela S.A., (PDVSA) the national energy company, and government officials to develop long-term economic benefits for Venezuela.

Williams owns a 67 percent interest in this Venezuelan high-pressure compression project, an important element of the country's economic development plan. The El Furrial project was the first major PDVSA energy infrastructure to be outsourced. It involves repressurizing the oil reservoir to stabilize the field and enhance recovery of oil.

Williams operates the landmark high-pressure gas compression facilities in eastern Venezuela for PDVSA.

Williams began construction on this high-pressure compression project in eastern Venezuela during 1999, started the project in 2001, and achieved project completion in October, 2002. The second largest compression plant in the world, PIGAP II is designed to re-inject between 1.2 Bcf/d and 1.4 Bcf/d of natural gas at 9,000 pounds per square inch to enhance PDVSA's crude oil production from the Santa Barbara Field. The project protects the reservoir from permanent damage that would result from falling pressure, and will enable PDVSA to recover an additional 1.3 billion barrels of light crude. PIGAP II and El Furrial position Williams, and its minority partner, as one of the world's leading oilfield high-pressure gas compression service providers.

Accroven

Williams purchased a 49.25 percent interest in this natural gas liquids extraction and processing project in March, 2001. Located in the Eastern Cryogenic Complex of Venezuela, the project includes the construction and operation of two 400 million cubic feet per day natural gas liquids extraction plants, a 50,000 barrels per day natural gas liquids fractionation plant and associated storage and refrigeration facilities.

The Eastern Cryogenic Complex comprises the Jose Fractionation facilities, located in the General Jose Antonio Anzoategui Oil and Petrochemical Complex, the liquids extraction facilities at San Joaquin, located 12 km south of Anaco, and the liquids extraction facilities at Santa Barbara in Northwestern Monagas State.

The project is expected to provide PDVSA with significant natural gas liquids volumes available for export, as well as residue gas used to maintain and enhance oil recovery in eastern Venezuela.