Foster Wheeler Awarded Major EPC Contract for SHARQ's World-Scale Petrochemical Complex Expansion in Saudi Arabia
October 05 2005 - 9:00AM
Business Wire
Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its
subsidiaries Foster Wheeler Energy Limited and Foster Wheeler
Arabia, Ltd. have received a contract from SABIC affiliate, Eastern
Petrochemical Company (SHARQ), for the engineering, procurement and
construction management contracts for the complete utilities and
offsite facilities to support the SHARQ 3rd Expansion Project at
Al-Jubail, Saudi Arabia. SHARQ is a 50:50 joint venture between
SABIC and SPDC, a Japanese consortium headed by Mitsubishi. This is
a major expansion of SHARQ's existing complex, and will add a total
of 2.8 million tonnes per year (tpy) to production, including 1.3
million tpy of ethylene, 700,000 tpy of ethylene glycol, 400,000 of
linear low density polyethylene, and 400,000 tonnes of high density
polyethylene. The Foster Wheeler contract value was not disclosed
and the project will be included in the company's third-quarter
2005 bookings. "The offsites and utilities required to support this
world-scale expansion are significant and we are delighted to have
secured these EPC contracts against strong international
competition," said Steve Davies, chairman and chief executive
officer of Foster Wheeler Energy Limited. "As program management
services contractor (PMC) for the entire 3rd Expansion Project, we
have developed a strong working relationship with SHARQ and its
partners during the front-end engineering design (FEED) phase. I am
pleased that we now have the opportunity to extend and reinforce
this relationship. As PMC for the entire expansion and EPC
contractor for the offsites and utilities, we are uniquely
positioned to integrate and co-ordinate the various elements of
this complex project to achieve SHARQ's beneficial operations
target." Foster Wheeler's scope of work as PMC included the FEED
preparation, and preparation and issue of invitations to bid for
engineering, procurement and construction (EPC) contracts. Foster
Wheeler is also managing all EPC contractors and providing the
overall management, coordination and control of all phases of the
expansion program. The project is scheduled for completion in early
2008. "We are pleased to continue our relationship with Foster
Wheeler for this important element of the project," commented
Mohammad Al-Jabri, president, Eastern Petrochemical Company. "After
the expansion, SHARQ will be one of the world's largest
petrochemical sites, and the world's largest single producer of
ethylene glycol, boosting SABIC's contribution to the national
economy and enhancing its competitiveness worldwide." Photo is
available from: http://www.fwc.com/enewsroom/images/sjw_9517.jpg
Caption: At the Contract Signing. Steve J. Davies (left), chairman
& chief executive officer, Foster Wheeler Energy Limited, and
Dr. Abdulaziz S. Al-Jarbou, chairman of the board of directors,
Eastern Petrochemical Company (SHARQ). Photo is available from:
http://www.fwc.com/enewsroom/images/sjw_9522.jpg Caption: At the
Contract Signing. Seated: Steve J. Davies (left), chairman &
chief executive officer, Foster Wheeler Energy Limited, and Dr.
Abdulaziz S. Al-Jarbou, chairman of the board of directors, Eastern
Petrochemical Company (SHARQ). Standing: Mohammed M. Al-Jabri
(left), president, Eastern Petrochemical Company (SHARQ), and
Stephen Culshaw, director, commercial operations, Foster Wheeler
Energy Limited. Notes to Editor: 1. Foster Wheeler Ltd. is a global
company offering, through its subsidiaries, a broad range of
design, engineering, construction, manufacturing, project
development and management, research and plant operation services.
Foster Wheeler serves the refining, upstream oil and gas, LNG and
gas-to-liquids, petrochemicals, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries. The corporation is based
in Hamilton, Bermuda, and its operational headquarters are in
Clinton, New Jersey, USA. For more information about Foster
Wheeler, visit our Web site at http://www.fwc.com. 2. Safe Harbor
Statement This news release contains forward-looking statements
that are based on management's assumptions, expectations and
projections about the Company and the various industries within
which the Company operates. These include statements regarding our
expectations regarding revenues (including as expressed by our
backlog), liquidity, the outcome of litigation and legal
proceedings and recoveries from customers for claims and the costs
of current and future asbestos claims and the amount and timing of
related insurance recoveries. Such forward-looking statements by
their nature involve a degree of risk and uncertainty. The Company
cautions that a variety of factors, including but not limited to
the factors described under the heading "Business--Risk Factors of
the Business" in the Company's most recent annual report on Form
10-K/A and the following, could cause the Company's business
conditions and results to differ materially from what is contained
in forward-looking statements: changes in the rate of economic
growth in the United States and other major international
economies, changes in investment by the power, oil and gas,
pharmaceutical, chemical/petrochemical and environmental
industries, changes in the financial condition of customers,
changes in regulatory environment, changes in project design or
schedules, contract cancellations, changes in estimates made by the
Company of costs to complete projects, changes in trade, monetary
and fiscal policies worldwide, currency fluctuations, war and/or
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services are or may be provided, outcomes of pending and future
litigation, including litigation regarding our liability for
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and validity of patents and other intellectual property rights,
increasing competition by foreign and domestic companies,
compliance with debt covenants, recoverability of claims against
customers and others, changes in estimates used in critical
accounting policies. Other factors and assumptions not identified
above were also involved in the formation of these forward-looking
statements and the failure of such other assumptions to be
realized, as well as other factors, may also cause actual results
to differ materially from those projected. Most of these factors
are difficult to predict accurately and are generally beyond our
control. You should consider the areas of risk described above in
connection with any forward-looking statements that may be made by
us.
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