Rotary and OKP will each take a 45% and 55% stake respectively in the $1 million joint venture company -- to be named OKP (Oil & Gas) Infrastructure Pte Ltd, subject to approval from the relevant authorities.

OKP is a leading home-grown infrastructure and civil engineering company in the region, specialising in the construction of airport runways and taxiways, expressways, flyovers, vehicular bridges, urban and arterial roads. The company has recently taken on projects in the oil and gas sector, providing civil construction work for petrochemical plants and oil storage terminals.

The most notable project on which OKP and Rotary have worked together is the Jurong Island oil terminal project that Rotary is building for Universal Terminal (S) Pte Ltd ("UT"). At S$535million and slated for completion by end 2007, this EPC contract is Rotary?s biggest to date. OKP was in turn awarded a contract by Rotary for part of the civil and related works for the UT project.

When completed, Universal Terminal will be one of the world?s largest independent oil terminals, with 2.3 million cubic metres of storage capacity in 73 custom-built tanks. The Universal Terminal will be the first oil terminal in this region to have its own 12 berths, including two VLCC berths. The terminal will have dedicated inner basin with six berths for coastal and bunker vessels of up to 15,000 DWT, while the outer berths are designed with the flexibility to handle vessels up to 320,000 DWT.

Following the award of the UT contract, OKP landed a number of deals to carry out civil works in this sector, including the New Polymer Storage for Exxonmobil Chemical Asia Pacific, the Singapore Parallel Train ("SPT") Project by Foster Wheeler Asia Pacific Pte Ltd and WorleyParsons Pte Ltd ("FWP"). Indeed, OKP was one of the first civil contractors to be awarded a contract by FWP to provide support for ExxonMobil?s SPT, an expansion project for a new world-scale steam cracker that would be integrated with its existing refinery and chemical plant on Jurong Island.