Foster Wheeler Awarded Feed Framework Agreement for Life Extension Project in Norway

14/07/2010


ZUG, Switzerland, Jul 15, 2010 (BUSINESS WIRE) --

Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has entered into a Framework Agreement, awarded by Statoil, acting on behalf of Gassco AS as operator for the Gassled joint venture, for front-end engineering design (FEED) services valid through 2013 to support the development of the Kårstø oil and gas processing plant in Norway. The Kårstø processing plant is ranked as the third largest liquid petroleum gas (LPG) export facility in the world. Statoil is modifying, on behalf of Gassco, the processing plant, via the Kårstø Life Extension project, to enable it to process new light oil/condensate production coming on stream in the Norwegian North Sea.

The Framework Agreement covers a series of different FEED projects. Foster Wheeler has been awarded the first FEED call-off contract for the Gudrun Onshore Modifications project, the objective of which is to enable the Kårstø plant to process light oil from the new Gudrun Field.

The Foster Wheeler contract value for the Gudrun Onshore Modifications FEED was not disclosed and will be included in the company's second-quarter 2010 bookings. The booking values for subsequent FEED awards will be recorded as individual call-off contracts are received.

"This Framework Agreement represents an important opportunity for Foster Wheeler to expand its relationship with Gassco and Statoil. We have the right upstream expertise and project execution skills to deliver high quality FEEDs for Gassco and Statoil and we also have a track record of project success in Norway and of building strong and long-lasting relationships through delivering excellence in alliance-type relationships," said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.

Gassco is operator for the Kårstø terminal, which is owned by the Gassled joint venture, with Statoil as the technical service provider.

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
United States
Julie Stanisz, 908-730-4047
julie_stanisz@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

Return to topTop