October 30, 2008
Foster Wheeler Awarded Contract for New Refinery in Libya
Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its Milan-based subsidiary Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded a contract by Zwara Oil Refinery Company Limited (ZORCO) for consultancy and project management services for a planned new 200,000 barrels per stream day crude oil refinery at Mellita, near Zwara, in the Great Socialist People's Libyan Arab Jamahiriya. ZORCO is a project company in which Tamoil Africa Holdings Ltd. holds the equity.
Foster Wheeler scope under the contract includes the optimization of the refinery configuration, the selection of the licensors and the front-end engineering design (FEED), including preparation of a cost estimate. Foster Wheeler will also prepare the tender documents for the engineering, procurement, construction (EPC) phase, will assist ZORCO in selecting the EPC contractor(s) and will act as project management consultant during the EPC phase.Foster Wheeler's contract value for the study and FEED phase will be included in the company's fourth-quarter 2008 bookings. The remainder of Foster Wheeler's project scope will not be booked until the project receives approval by ZORCO to proceed into the EPC phase. The refinery is planned to be completed in 2014.
The planned new facility, with an estimated total investment cost of about $4 billion, includes a state-of-the-art facility aimed at producing premium quality gasoline, jet fuel and diesel with minimal fuel oil production, and related utilities, offsites and marine facilities.
"We are indeed extremely pleased to be awarded this prestigious contract by ZORCO," said Marco Moresco, chief executive officer, Foster Wheeler Italiana. "We have strong roots in Libya and we look forward to leveraging our in-depth refinery expertise to build on the excellent working relationships established in the past."
"This is a flagship project in North Africa requiring deep technical knowledge, experience and flexibility," said Dr. Ali Shamekh, chairman, ZORCO Ltd. "We are very pleased to award the contract to Foster Wheeler Italiana and we will join forces for the successful implementation of the Project."
Foster Wheeler Ltd. is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs over 14,000 talented professionals with specialized expertise dedicated to serving our clients through one of its two primary business groups. The company's Global Engineering & Construction (E&C) Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, 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 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 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 Part I, Item 1A "Risk Factors" of the Company's 2007 Form 10-K, which was filed with the SEC on February 26, 2008 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 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 its global operations, currency fluctuations, war and/or terrorist attacks on 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 competition by foreign and domestic companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and clams 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.