Foster Wheeler Awarded Basic Engineering Design and Feed Contract by Preem for Energy Savings Program in Sweden
June 15 2011 - 8:15AM
Business Wire
Foster Wheeler AG (Nasdaq: FWLT) announced today that a
subsidiary of its Global Engineering and Construction Group has
been awarded a contract by Preem AB (Publ) Preemraff Lysekil
(Preem) to perform the basic engineering design (BED) and front-end
engineering design (FEED) for Preem’s Energy Savings Program 2013
Turnaround at the Preemraff Lysekil oil refinery, located north of
Gothenburg on the west coast of Sweden.
The Foster Wheeler contract value for this project was not
disclosed. The contract value for the BED was included in the
company’s first-quarter 2011 bookings. The FEED will be booked upon
release of this work by the client. This release is expected to be
given during the second-quarter of 2011.
Last year Preem awarded an energy improvement study (EIS) to
Foster Wheeler’s Business Solutions Group, working with AspenTech,
with the aim of improving energy efficiency and reducing emissions
in this complex refinery. The study covered both design and
operational improvement options. Five design options from this
study were selected by Preem for further development and economic
analysis.
During the basic engineering design phase, Foster Wheeler’s UK
Operations will further develop these five options. This will
involve determining the feasibility and extent of modifications
required and estimating their associated costs. Preem then plans to
select one or more options, for which Foster Wheeler will then
perform the FEED to allow Preem to make a financial investment
decision in October 2011. The basic engineering design is scheduled
for completion in June 2011 and the FEED in September 2011.
“The team of Foster Wheeler and AspenTech developed design
options for the refinery which were sophisticated, innovative and
offer the potential for good energy savings returns,” said Umberto
della Sala, Interim Chief Executive Officer of Foster Wheeler AG.
“Preem has chosen to go forward with five of these opportunities.
We look forward to demonstrating continued added value to Preem as
we develop these opportunities further.”
Foster Wheeler AG is a global engineering and construction
contractor and power equipment supplier delivering technically
advanced, reliable facilities and equipment. The company employs
approximately 12,000 talented professionals with specialized
expertise dedicated to serving its clients through one of its two
primary business groups. The company’s Global Engineering and
Construction Group designs and constructs leading-edge processing
facilities for the upstream oil and gas, LNG and gas-to-liquids,
refining, chemicals and petrochemicals, power, mining and metals,
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 Zug,
Switzerland, and its operational headquarters office is in Geneva,
Switzerland. For more information about Foster Wheeler, please
visit our Web site at www.fwc.com.
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Company’s expectations about revenues (including as expressed by
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proceedings and recoveries from customers for claims and the costs
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global economic conditions, changes in investment by the oil and
gas, oil refining, chemical/petrochemical and power generation
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schedules, contract cancellations, changes in estimates made by the
Company of costs to complete projects, changes in trade, monetary
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the failure of such other assumptions to be realized, as well as
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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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