Friday, Feb 01, 2008
HAMILTON, Bermuda–Jan. 31, 2008–Foster Wheeler Ltd. (Nasdaq:FWLT) announced that its UK-headquartered subsidiary, Foster Wheeler Energy Limited, part of its Global Engineering and Construction Group, has been awarded a project management consultancy (PMC) contract by OJSC “Khabarovsk Oil Processing Refinery,” a 100% subsidiary of OJSC “Oil Company Alliance” (Alliance), for a new hydroprocessing complex at its Khabarovsk refinery in Russia.
The Foster Wheeler contract value for this project was not disclosed and will be included in the company’s fourth-quarter 2007 bookings.
Foster Wheeler will execute the project from its Glasgow operation in the UK. The company will manage the selected engineering, procurement and construction contractor and will provide ongoing advice and assistance to Alliance on commercial matters.
“We are delighted to continue our involvement in this project,”
said Stephen Culshaw, managing director, commercial operations, Foster Wheeler Energy Limited. “We have already completed the front-end engineering design for the entire hydroprocessing complex, and have undertaken the basic design for the hydrogen production facility. This latest award confirms the quality of our technical and project management expertise and allows us to build upon our already excellent working relationship with Alliance.”
The new hydroprocessing complex comprises a hydrocracker, hydrotreater, hydrogen unit, amine regeneration unit, sour water stripper and sulfur recovery unit. The hydrogen plant is based on Foster Wheeler’s own proprietary TERRACE-WALL(TM) steam methane reforming technology.
The capacity of the complex, which is scheduled for completion in early 2011, will be as follows: the diesel fuel and kerosene hydrotreater unit – 1.18 million tons per year, and the hydrocracker unit – 0.5 million tons per year.
“Alliance has established an excellent relationship with Foster Wheeler, and we are pleased to continue the cooperation with this company. I am confident that Foster Wheeler will deliver high quality technical and project management services, and the project will be completed successfully,” said D. V. Shekera, vice president, OJSC “Oil Company Alliance.”
Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the upstream oil and gas, LNG and gas-to-liquids, refining, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company is based in Hamilton, Bermuda, 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 regarding 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 Part II, Item 1A “Risk Factors” of the Company’s most recent quarterly report on Form 10-Q and the following, could cause the Company’s business conditions and results to differ materially from what is contained in forward-looking statements: 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 environment, 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 our global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned or where equipment or services are or may be provided, interruptions to shipping lanes or other methods of transport, 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 foreign and 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.
CONTACT: Foster Wheeler Ltd.
Maureen Bingert, 908-730-4444
Anne Chong, +44 (0)118 913 2106
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