Foster Wheeler Signs Three-Year Statoil Frame Agreement for FEEDs
ZUG, Switzerland--(BUSINESS WIRE)-- Foster Wheeler AG (NAS: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has signed a three-year frame agreement with Statoil Petroleum AS for the provision of front-end engineering design (FEED) services for future projects at the Kårstø and Kollsnes processing plants, located in Norway north of Stavanger and north-west of Bergen, respectively. The frame agreement includes an option for Statoil to extend the agreement for a further two years and for Foster Wheeler to execute concept studies as well as FEEDs.
The value of the agreement was not disclosed. Bookings will be recorded as work is released by Statoil.
The Kårstø processing plant plays a key role in the transport and treatment of gas and condensate from twenty-eight fields on the Norwegian continental shelf, which fields are connected to the plant via pipelines. The Kårstø complex ranks as the world's third largest export port for liquefied petroleum gases (LPG) and is the biggest in Europe. The processing plant at Kollsnes treats gas from the Troll, Kvitebjørn and Visund fields in the North Sea, and can handle up to 143 million standard cubic meters per day.
Statoil is acting on behalf of Gassco. Gassco is the operator for the Kårstø and Kollsnes processing plants, which are owned by the Gassled joint venture, with Statoil as the technical service provider.
"We have developed an excellent working relationship with Statoil and have been working with them at these facilities under an existing agreement for some time, as well as working with them on other projects, including Snøhvit LNG, " said Umberto della Sala, Chief Operating Officer of Foster Wheeler AG. "We will continue to focus on providing responsive and flexible service, combining our in-depth technical skills and our significant upstream experience and capability to support Statoil in successfully delivering its planned portfolio of projects at Kollsnes and Kårstø."
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 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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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 to Switzerland; the benefits, effects or results of our strategic renewal initiative; further deterioration in global economic condition; changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries; changes in the financial condition of our 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 our global operations; currency fluctuations; war, terrorist attacks and/or natural disasters affecting 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 global competition; compliance with debt covenants; recoverability of claims against customers and others by the Company and claims by third parties against the Company; and changes in estimates used in our 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 or furnished with the Securities and Exchange Commission.
Foster Wheeler AG
Julie Stanisz, 908-730-4047
Anne Chong, +44 (0) 118 913 2106
Scott Lamb, 908-730-4155
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