Foster Wheeler Wins Gassco Contracts for Zeebrugge and Dunkerque Terminals

28/07/2009


ZUG, SWITZERLAND, July 29, 2009 -- Foster Wheeler AG (Nasdaq: FWLT) announced that its UK-headquartered subsidiary, Foster Wheeler Energy Limited, part of its Global Engineering and Construction Group, has been awarded an engineering, procurement and construction (EPC) contract by Gassco AS for the implementation of the blow-down system modification at Gassco’s Zeebrugge Terminal, Belgium. Foster Wheeler has also been awarded the concept development and pre-engineering of the blow-down system at Gassco’s Dunkerque Terminal in France following its successful completion of the study phase.

A blow-down system is used to safely depressurize the process areas of a gas terminal in the event of an emergency.

The Foster Wheeler contract values for both projects were not disclosed and will be included in the company’s second-quarter 2009 bookings.

The EPC work at Zeebrugge will be executed by Foster Wheeler’s Teesside operation at Middlesbrough in the UK. Foster Wheeler’s specialist Upstream Oil & Gas Division in Reading, UK, earlier completed a study for Zeebrugge to review the blow-down system and to recommend options to reduce the risk of escalation in the inlet and process areas in the event of a fire, which study was followed by a pre-engineering contract. Completion of the project is expected toward the end of 2010.

The concept development and pre-engineering work for Dunkerque will involve further development of the proposed solution, identified in the completed study, to optimise the blow-down system to meet venting time recommendations for the fire-affected areas. This work will support Gassco in seeking approval to proceed with project implementation.

-These two awards from Gassco offer us an opportunity to build on our excellent working relationship with Gassco at both terminals, and demonstrate the added value, high quality and innovation delivered by our specialist upstream team in developing technically viable and cost-effective solutions to meet our clients’ objectives,” said Michael J. Beaumont, chairman and chief executive officer of Foster Wheeler Energy Limited.

Jan Deckmyn, HES&Q Manager, Gassco AS, commented, -Safety is the top priority for Gassco at its Zeebrugge and Dunkerque terminals. The work being performed by Foster Wheeler at these terminals will ensure that Gassco meets its objectives of safety improvement and compliance with all safety rules and regulations at these two locations.”

Gassco, a Norwegian state-owned company, is responsible for the transportation of all gas from the Norwegian Continental Shelf to Europe through its Zeebrugge and Dunkerque terminals. These terminals remove residual liquids and solids from the gas, regulate its pressure and temperature, and meter volume and quality before onward transmission to downstream users.

Foster Wheeler AG 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 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, carbon capture, 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 Zug, Switzerland, 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 the Company’s most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company’s business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company’s redomestication, 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 non-U.S. and U.S. domestic companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims 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.

Foster Wheeler AG
United States
Maureen Bingert, 908-730-4444
maureen_bingert@fwc.com
or
United Kingdom
Anne Chong, +44 (0)118 913 2106
anne_chong@fwuk.fwc.com
or
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries: 908-730-4000
fw@fwc.com

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