JEC Jacobs Engineering Group Inc

A subsidiary of Global Engineering and Construction Group of Foster Wheeler AG (FWLT) received a basic design engineering package and engineering, procurement and construction management (EPCm) contract from Thai Oil Public Company Limited. Thai Oil refinery at Sriracha will be using Forster Wheeler’s EPCm services for the Emission Improvement and its PSA-3 project.

The contact had been recorded by the company in its first-quarter 2011 booking. However, the terms of the deal were not disclosed.

The project will increase crude processing flexibility of the refinery which will  allow it to process greater amount of sulfur crudes, obtain important end products from improved fuel oil and fulfill new regulations in Thailand regarding sulfur oxides (SOx) emissions.

Deep cut vacuum technology will be used to decrease the residue production of the refinery. New sour gas handling facilities will also be built together with the expansion of hydrogen production capacity through installation of by installing a new pressure swing adsorption unit.

The project is expected to be concluded in the first quarter of 2013, being an add on to a number of successful projects carried out by Foster Wheeler for Thai Oil at Sriracha as well as others in Thailand. Foster Wheeler’s technical expertise and project execution capability will help it to meet objectives of Thai Oil’s project.

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. Major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).

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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