FWLT-BP Tie Up for Gas Separation - Analyst Blog
December 22 2011 - 9:30AM
Zacks
A subsidiary of Foster
Wheeler AG’s (FWLT) Global Engineering and Construction
Group received a contract from BP Exploration Operating Company
Limited to provide engineering, procurement and construction
management services to BP Exploration’s Enhanced Gas Separation
Project (EGSP) in Scotland.
The company’s first-, second- and
third-quarter 2011 bookings included the interim releases of work
with the main release to be included in the bookings of the final
quarter of the year. The value of the contract for Foster Wheeler
is undisclosed.
The pre-front-end design (pre-FEED)
and FEED on the project have already been completed by Foster
Wheeler. The project involves debottlenecking of the Forties
Pipeline System (FPS) crude degasification facilities at BP
Exploration’s Kinneil terminal to allow it to handle high
gas-to-oil ratio unstabilized crude oils and natural gas liquids
(NGLs). The said work entails the modification of the existing
plant, including improvements to heater and process control
systems, as well as installation of new facilities like crude
coolers and cooling water system. The scheduled time for the
completion of the project is 2013.
Foster Wheeler and BP have worked
as cohorts in the designing phase of the contract. The company has
also helped BP in the presentation of the project status to other
concerning parties in the FPS.
The FPS serves both UK and
Norwegian sectors of the central and northern North Sea. It is an
integrated oil and gas liquid transportation and processing system
with a capacity, estimated by BP, of above one million barrels per
day and carries around 40% of UK’s oil production. The system
receives oil and gas liquids from more than 30 offshore fields and
the St. Fergus gas terminal.
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. The major competitors of
Foster Wheeler are Fluor Corporation (FLR) and
Jacobs Engineering Group Inc. (JEC).
Currently, Foster Wheeler shares
retain a Zacks #5 Rank (short-term Strong-Sell recommendation).
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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