Foster Wheeler-Managed Iraq Crude Oil Export Expansion Project Achieves "First Oil Ready for Start-Up" Milestone

11/02/2012


ZUG, Switzerland--(BUSINESS WIRE)--Feb. 12, 2012-- Foster Wheeler AG (Nasdaq: FWLT) announced today that the Iraq Crude Oil Export Expansion Project (ICOEE) has achieved its -first oil ready for start-up” milestone. This is a significant step towards Iraq’s planned increase in crude exports. This first phase of the expansion is intended to increase the country’s crude oil export capacity by 1.8 million barrels per day (MMBPD) of additional production. A further increase of another 1.8 MMBPD in Iraq’s export capacity is intended to be delivered on completion of phase 2 of the expansion. Achievement of this milestone represents the start of the final commissioning activities leading to readiness of the facilities to load first oil cargo onto a tanker for export.

Foster Wheeler executed the front-end engineering design for the two-phase capacity increase and is currently the project management consultant (PMC) for the engineering, procurement and construction (EPC) of both phases of the project. South Oil Company, a company under the Ministry of Oil of the Republic of Iraq, with Foster Wheeler's assistance, purchased long-lead items and free-issued these to the EPC contractors in order to assure the schedule.

-We are proud to play a key role in realizing Iraq’s development vision,” said Umberto della Sala, chief operating officer of Foster Wheeler AG. -We have established an excellent working relationship with South Oil Company and Iraq’s Ministry of Oil, and this teamwork has been a key success factor in achieving this -first oil ready for start-up” milestone. We have been executing projects in Iraq since the 1930s and we believe that this latest success demonstrates that we are committed to working, together with our clients in Iraq, to deliver project execution excellence.”

The Director General of SOC, Mr Dheyaa Jaafar Hyjam said: -This is a truly wonderful achievement by all the parties involved, and forms the first of many steps that would see Iraq’s export capacity rising to restore Iraq to its rightful place as a world-class oil producer. We are proud of the close relationship between ourselves and Foster Wheeler, and the commitment that Foster Wheeler has demonstrated in making this project a success. We look forward to continuing this success in the second phase of the ICOEE project.”

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 12,000 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, mining and metals, 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 www.fwc.com.

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Source: Foster Wheeler AG

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