FWLT (MM)

Recently Oman Oil Refineries and Petroleum Industries (Orpic), owned by the Government of the Sultanate of Oman, selected technologies of both UOP LLC, a Honeywell International Inc. (HON) company, and Foster Wheeler AG (FWLT), for its refinery in Sohar, Oman.  The Solvent Deasphalting (SDA) process technology from the companies will be used to process heavy oil and expand fuel and petrochemicals production at the refinery.

Through the technology, heavy crude will be converted into low-contaminant deasphalted oil, which will be further processed in refineries to produce liquefied petroleum gas (LPG), gasoline, jet fuel, diesel and propylene. The new unit will process 2.5 million metric tonnes per year of heavy crude to significantly increase the refinery's production of valuable petroleum products.  With the new unit, the refinery's production of valuable petroleum products will be significantly enhanced as it will process 2.5 million metric tonnes of heavy crude per year.

The new unit is expected to start in 2015 with the technology license and basic engineering package collaboratively provided by Honeywell's UOP and Foster Wheeler. Through the successful implementation of this project, Orpic will be able to considerably increase its yields of transportation fuels from heavy, difficult-to-upgrade feedstocks. The UOP/Foster Wheeler technology will be used to achieve the goals of this strategically important refinery project in the Middle East.  

Based in Morris Township, N.J., Honeywell International Inc. is a Fortune 100 company providing technical and manufacturing support to customers worldwide. It also provides aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. A major competitor of Honeywell is United Technologies Corp. (UTX). We currently maintain our Outperform rating on Honeywell, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States.  The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. A major competitor of Foster Wheeler is Fluor Corporation (FLR). We continue to maintain a Neutral rating on Foster Wheeler, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

 
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