Foster Wheeler Awarded Contracts for New Refinery in Turkey

20/06/2010


ZUG, Switzerland, Jun 21, 2010 (BUSINESS WIRE) --Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has been awarded contracts by SOCAR & TURCAS Rafineri A.S. (STRAS) for its planned grassroots refinery to be built within the Petkim Petrokimya A.S. (PETKIM) facilities at Aliaga, Turkey. The contracts cover overall front-end engineering design for the new refinery and the license and basic design package for the delayed coker, which will use Foster Wheeler's leading SYDECSM delayed coking technology.

The Foster Wheeler contract value was not disclosed and was included in the company's first-quarter 2010 bookings.

The planned new facility will have a capacity of 214,000 barrels per stream day (BPSD). Naphtha and fuel oil from the hydrocracking unit will be delivered to PETKIM for petrochemical use.

The refinery will include crude and vacuum distillation units, naphtha hydrotreating, a 40,000 BPSD delayed coking unit, a 66,000 BPSD hydrocracking unit, kerosene and diesel hydrotreaters, LPG caustic treatment units, a 28,000 BPSD continuous catalytic reformer, a saturated gas unit, an amine and sour water stripper, sulfur and tail gas treatment units and a 160,000 Nm3/h hydrogen unit, as well as utilities, auxiliary systems and offsite facilities. The SYDECSM process as configured for this project will be designed to maximize clean liquid yields while minimizing fuel coke yields. Foster Wheeler's scope of work under these contracts is expected to be completed by the end of 2010.

"Our vision is to become the leading oil and gas company in Turkey with the creation of refining and petrochemicals integration," said Batu Aksoy, Executive Board Member of SOCAR & TURCAS Rafineri A.S. "We are implementing major investments to achieve this goal and to sustain our growth, and we are indeed very pleased to award these contracts to Foster Wheeler which has a long-standing presence in Turkey and can deliver our requirements for a high standard of expertise."

Foster Wheeler's SYDECSM process is a flexible thermal conversion process used by refiners worldwide to upgrade heavy residue feed and process it into high value transport fuels and coke products for fuel and metallurgical markets. The SYDEC(SM) process can be designed to maximize clean liquid yields while minimizing fuel coke yields, or to achieve other objectives, for example, to minimize heavy gas oil yields or to produce specific grades of coke for industrial use. Foster Wheeler is a market leader in delayed coking and has supplied its process technology worldwide for over 80 new cokers and has implemented more than 70 delayed coker revamps.

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 13,000 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, 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 http://www.fwc.com.

Safe Harbor Statement

Foster Wheeler AG 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 or the relocation of our principal executive offices to Geneva, Switzerland; further deterioration in the economic conditions in the United States and other major international economies, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation 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. 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.

SOURCE: Foster Wheeler AG

Foster Wheeler AG
Media Contacts
United States
Julie Stanisz, 908-730-4047
julie_stanisz@fwc.com
Italy
Cristiana Monti, +39 02 4486 2135
cristiana_monti@fwceu.com
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
Other Inquiries
908-730-4000
fw@fwc.com

Return to topTop