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Shaw, Toshiba and Exelon Sign Agreement for Nuclear Projects in Saudi Arabia

Global News - Middle East/Africa

BATON ROUGE, La. – The Shaw Group Inc. (NYSE: SHAW), Toshiba Corporation (TOKYO: 6502) and Exelon Nuclear Partners today announced a teaming agreement to pursue opportunities to provide a full complement of services to design, engineer, construct and operate new nuclear electric generating plants in Saudi Arabia.

Under the terms of the agreement, the group jointly would pursue engineering, procurement, construction and operations of nuclear power plants using Toshiba’s Advanced Boiling Water Reactor (ABWR), which is a leading-edge nuclear power plant technology with already proven records of performance, reliability and operation in Japan. The group also is capable of utilizing Westinghouse AP1000™ technology, the leading-edge passively cooled nuclear technology.

Toshiba and Shaw would provide design, engineering, procurement and construction while Exelon would provide operations and related services for the projects.

“Shaw, Toshiba and Westinghouse are working collaboratively with customers to build four nuclear units in China and six new nuclear units in the U.S., the first contracts awarded in the U.S. in nearly 30 years for new nuclear power plants,” said J.M. Bernhard Jr., Shaw’s chairman, president and chief executive officer. “The addition of Exelon, which operates the largest nuclear power fleet in the United States, creates a team that is unmatched in its ability to offer a portfolio of technology, construction and operations in Saudi Arabia.”

The Saudi government recently stated its commitment to the research and funding of commercial nuclear power. In April, King Abdullah issued a royal order establishing the King Abdullah City for Nuclear and Renewable Energy, a high-level organization that will oversee all aspects of a nuclear power industry in Saudi Arabia. Shaw currently is working in Saudi Arabia, performing a three-phase study to define and recommend operational improvements at 53 power plants throughout the Kingdom.

For any U.S. company to engage in civilian nuclear cooperation with Saudi Arabia, the U.S. and Saudi Arabian governments must negotiate a framework agreement that meets specific requirements under Section 123 of the Atomic Energy Act, followed by U.S. congressional review of the agreement. Execution of any business arrangements for a Japanese company with a Saudi Arabian entity is also subject to the future conclusion of an Agreement for Cooperation between Japanese and Saudi Arabian governments concerning Peaceful Uses of Nuclear Energy.

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