Foster Wheeler Awarded Front-End Engineering Design Contract by Gazpromneft for a Refinery Upgrade i

Foster Wheeler Awarded Front-End Engineering Design Contract by Gazpromneft for a Refinery Upgrade in Russia

ZUG, Switzerland--(BUSINESS WIRE)-- Foster Wheeler AG (NAS: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by OJSC Gazpromneft Moscow Refinery to provide front-end engineering design (FEED) and design documentation in accordance with Russian norms, for a major investment, termed the Combined Oil Refinery Unit (CORU) Project, at the Moscow Refinery.

The value of the award was not disclosed and will be included in Foster Wheeler's first-quarter 2013 bookings.

The CORU project is part of the implementation of Gazpromneft's OJSC Moscow Refinery Revamping and Upgrading Program, under which the refinery will be expanded up to 2020 to process an additional six million tons of crude oil per year and produce transportation fuels to Euro-V standards.

The CORU facilities are planned to include crude distillation and vacuum distillation units (CDU & VDU), a continuous catalytic reforming unit with naphtha hydrotreatment and hydrogen recovery by pressure swing adsorption, a diesel hydrotreater including a dewaxing section, a gas plant with a liquefied petroleum gases sweetening unit and common utilities. The FEED activities are expected to be completed in the fourth quarter of 2013 while the submission of design documentation is scheduled for the first quarter of 2014.

Foster Wheeler was previously awarded the process design package for the facilities' crude and vacuum distillation units and the gas plant.

"Developing long-term relationships with our clients based on project execution excellence and expanding our served markets in Russia are two of our strategic objectives," said Umberto della Sala, President and Chief Operating Officer, Foster Wheeler AG. "We plan to leverage our experience in Russia, our in-depth refining experience and our reputation for developing high quality FEEDs to deliver a strong performance for Gazpromneft to form the basis for a longer-term working relationship."

"The CORU Project is the most important investment for our Moscow Refinery. Timely completion and plant start-up are vital for our company, but completion of a strong FEED is a very important first step in the realization of this key project," said Anatoli Moiceevich Cherner, Deputy Chairman of the Board, Gazpromneft.

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, 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 Reading, United Kingdom. For more information about Foster Wheeler, please visit our Web site at 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 to Switzerland, benefits, effects or results of the Company's strategic renewal initiative, further deterioration in global economic conditions, 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, the 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 the Company's 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 the Company's patents and other intellectual property rights, increasing global competition, compliance with its debt covenants, recoverability of claims against the Company's 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 or furnished with the Securities and Exchange Commission.

Media Contacts:
United States
Julie Stanisz, 908-730-4047
julie_stanisz@fwc.com
or
Italy
Cristiana Monti, +39 02 4486 2135
cristiana_monti@fwceu.com
or
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries, 908-730-4000
fw@fwc.com

KEYWORDS: United States Europe North America Russia New Jersey Switzerland

INDUSTRY KEYWORDS:

The article Foster Wheeler Awarded Front-End Engineering Design Contract by Gazpromneft for a Refinery Upgrade in Russia originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.