Foster Wheeler Awarded FEED Contracts by S-OIL Corporation for Residue Upgrading Project in South Korea

Wednesday, Mar 12, 2014

Foster Wheeler AG (Nasdaq:FWLT) announced today that subsidiaries of its Global Engineering and Construction Group have been awarded contracts by S-OIL Corporationfor the front-end engineering design (FEED) for a residue upgrading project at S-OIL’sOnsan refinery in Ulsan, South Korea.

The Foster Wheeler contract values were not disclosed and will be included in the company’s first-quarter 2014 bookings.

The upgrade of the refinery includes the addition of a residue hydrodesulfurization unit, a residue fluid catalytic cracker and multiple downstream upgrading units to enable the refinery to produce more higher value products and, in particular, maximize production of polymer-grade propylene.

In addition to executing the FEED, Foster Wheeler will also prepare the tender for the engineering, procurement and construction (EPC) phase, procure long-lead items, evaluate the EPC bids, and prepare a cost estimate to support S-OIL’s final investment decision.

“This award illustrates our strategy to deploy our global network of operations, with our execution centers working together to support our clients through the entire lifecycle of their planned investments,” said Roberto Penno, chief executive officer, Foster Wheeler Global Engineering & Construction Group. “Foster Wheeler’s Business Solutions Group in Reading, UK, performed the pre-FEED, and our execution centers in the UK andThailand will now work together on the FEED to support S-OIL in the development of this major upgrade project at S-OIL’s world-scale refinery.”

Foster Wheeler AG is a global engineering and construction company 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, minerals 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 inReading, United Kingdom.

Source: www.fwc.com.