Foster Wheeler Selected to Manage EPC Phase of GASCO's Habshan Gas Complex Expansion in the UAE
January 17 2006 - 9:00AM
Business Wire
Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that one of its
subsidiaries has been awarded a contract by Abu Dhabi Gas
Industries Ltd. (GASCO) to provide management services for the
engineering, procurement and construction (EPC) phase of GASCO's
Habshan Gas Complex Expansion (HGCE) Project at Habshan, Abu Dhabi,
UAE. GASCO, a subsidiary of Abu Dhabi National Oil Company, is one
of the largest gas processing companies in the world. The
management services will be undertaken by Foster Wheeler Energy
Limited in the UK, previously awarded the contract to provide
management services for the front-end engineering design and EPC
contractor selection phases of this project. The Foster Wheeler
contract value was not disclosed and the project will be included
in the company's fourth-quarter 2005 bookings. The HGCE Project is
a $1 billion expansion of the existing Habshan Gas Complex, one of
the world's largest gas processing plants. This expansion project
will allow the processing of incremental associated gas resulting
from ADNOC's expansion of its crude oil production from 1.2 to 1.4
million barrels per day. Associated gas is found in association
with crude oil, as distinct from non-associated gas, which is
produced from reservoirs that do not contain significant quantities
of crude oil. "We are very pleased that GASCO has demonstrated its
continued confidence by selecting Foster Wheeler to manage the EPC
phase of this significant expansion at Habshan," said Steve Davies,
chairman and chief executive officer of Foster Wheeler Energy
Limited. "This award builds on our well-established and very
successful relationship with GASCO and follows on our success in
providing similar services for GASCO's Onshore Gas Development III
and Ruwais 3rd Train projects, which are both world-scale
developments." "The HGCE Project is a strategic investment which
will be instrumental in delivering GASCO's vision: continuously to
generate value through world-class management of our gas plant and
distribution network within the hydrocarbon value chain," said
Khaled Ghanem, senior project manager, GASCO. "We have established
an excellent working relationship with Foster Wheeler and we
perform as one integrated project management team, committed to
satisfying GASCO's expectations for the successful implementation
of the project, meeting our company's ambitious health, safety and
environmental quality requirements and achieving a smooth, 'right
first time' start-up." The HGCE project is planned for completion
in mid 2008 and includes the following: -- Two new 800 tonnes per
day SUPERCLAUS(R) sulfur recovery units; -- A new acid gas
enrichment unit; -- New low pressure, high pressure and feed gas
compressors plus associated pipelines; -- Associated offsites and
utilities; and -- Upgrade of existing distributed control systems.
Notes to Editors: 1. Foster Wheeler Ltd. is a global company
offering, through its subsidiaries, a broad range of engineering,
procurement, 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,
petrochemical, 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 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 terrorist attacks on facilities either
owned or where equipment or services are or may be provided,
outcomes of pending and future litigation, including litigation
regarding our liability for damages and insurance coverage for
asbestos exposure, protection 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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