Foster Wheeler Awarded Contract for New Refinery in Libya
October 30 2008 - 8:15AM
Business Wire
Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its
Milan-based subsidiary Foster Wheeler Italiana S.p.A., part of its
Global Engineering and Construction Group, has been awarded a
contract by Zwara Oil Refinery Company Limited (ZORCO) for
consultancy and project management services for a planned new
200,000 barrels per stream day crude oil refinery at Mellita, near
Zwara, in the Great Socialist People�s Libyan Arab Jamahiriya.
ZORCO is a project company in which Tamoil Africa Holdings Ltd.
holds the equity. Foster Wheeler scope under the contract includes
the optimization of the refinery configuration, the selection of
the licensors and the front-end engineering design (FEED),
including preparation of a cost estimate. Foster Wheeler will also
prepare the tender documents for the engineering, procurement,
construction (EPC) phase, will assist ZORCO in selecting the EPC
contractor(s) and will act as project management consultant during
the EPC phase. Foster Wheeler�s contract value for the study and
FEED phase will be included in the company�s fourth-quarter 2008
bookings. The remainder of Foster Wheeler�s project scope will not
be booked until the project receives approval by ZORCO to proceed
into the EPC phase. The refinery is planned to be completed in
2014. The planned new facility, with an estimated total investment
cost of about $4 billion, includes a state-of-the-art facility
aimed at producing premium quality gasoline, jet fuel and diesel
with minimal fuel oil production, and related utilities, offsites
and marine facilities. �We are indeed extremely pleased to be
awarded this prestigious contract by ZORCO,� said Marco Moresco,
chief executive officer, Foster Wheeler Italiana. �We have strong
roots in Libya and we look forward to leveraging our in-depth
refinery expertise to build on the excellent working relationships
established in the past.� �This is a flagship project in North
Africa requiring deep technical knowledge, experience and
flexibility,� said Dr. Ali Shamekh, chairman, ZORCO Ltd. �We are
very pleased to award the contract to Foster Wheeler Italiana and
we will join forces for the successful implementation of the
Project.� Foster Wheeler Ltd. is a global engineering and
construction contractor and power equipment supplier delivering
technically advanced, reliable facilities and equipment. The
company employs over 14,000 talented professionals with specialized
expertise dedicated to serving our clients through one of its two
primary business groups. The company�s Global Engineering &
Construction (E&C) Group designs and constructs leading-edge
processing facilities for the upstream oil and gas, LNG and
gas-to-liquids, refining, chemicals and petrochemicals, power,
environmental, pharmaceuticals, biotechnology and healthcare
industries. The company�s Global Power Group is a world leader in
combustion and steam generation technology that designs,
manufactures and erects steam generating and auxiliary equipment
for power stations and industrial facilities and also provides a
wide range of aftermarket services. The company is based in
Hamilton, Bermuda, and its operational headquarters are in Clinton,
New Jersey, USA. For more information about Foster Wheeler, please
visit our Web site at www.fwc.com. Safe Harbor Statement Foster
Wheeler news releases may contain 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 the Company�s
expectations about revenues (including as expressed by its
backlog), its 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 in Part I, Item 1A �Risk Factors� of the
Company�s 2007 Form 10-K, which was filed with the SEC on February
26, 2008 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 oil and gas, oil refining,
chemical/petrochemical and power industries, changes in the
financial condition of its customers, changes in regulatory
environments, 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, compliance with laws and regulations relating to its
global operations, currency fluctuations, war and/or terrorist
attacks on facilities either owned by the Company or where
equipment or services are or may be provided by the Company,
interruptions to shipping lanes or other methods of transit,
outcomes of pending and future litigation, including litigation
regarding the Company�s liability for damages and insurance
coverage for asbestos exposure, protection and validity of its
patents and other intellectual property rights, increasing
competition by foreign and domestic companies, compliance with its
debt covenants, recoverability of claims against its customers and
others by the Company and clams by third parties against the
Company, and changes in estimates used in its 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 the
Company�s control. You should consider the areas of risk described
above in connection with any forward-looking statements that may be
made by the Company. The Company undertakes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise. You are advised,
however, to consult any additional disclosures the Company makes in
proxy statements, quarterly reports on Form 10-Q, annual reports on
Form 10-K and current reports on Form 8-K filed with the Securities
and Exchange Commission.
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