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Foster Wheeler Awarded Feed/Project Management Services Contract By Saudi Aramco for Khurais Project

Posted on: Tuesday, 5 July 2005, 09:01 CDT

Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its UK subsidiary Foster Wheeler Energy Limited has been awarded a front-end engineering (FEED) and project management services contract by Saudi Aramco for the Khurais full-field development in Saudi Arabia. This onshore crude increment program aims to deliver 1.2 million barrels per day (b/d) of Arabian light crude by 2009. It is the largest of several projects to be developed under Saudi Aramco's expansion program aimed at increasing oil production capacity to 12.5 million b/d by the end of the decade.

The terms of the contract were not disclosed and the project will be included in Foster Wheeler's second-quarter bookings.

"Foster Wheeler is delighted to be awarded this contract by Saudi Aramco and is proud to be involved in what is one of most important oil projects in the world today," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited. "This award confirms Saudi Aramco's confidence in our ability to meet their objectives for this project, based on our proven performance on its previous major oil and gas developments, such as Haradh and Qatif. We have consistently met or exceeded Saudi Aramco's safety, quality, schedule and cost targets and are fully committed to delivering the same outstanding performance on the fast-track Khurais project."

"Foster Wheeler was the obvious choice for this work based on its previous experience on the Haradh and Qatif projects and its ability to meet the fast-track schedule with the required quality of personnel," commented Salman Al-Aradi, manager, Khurais Producing Facilities Projects Dept., Saudi Aramco.

Foster Wheeler's scope of work includes a grassroots central processing facility at Khurais, upgrade of support facilities at the Ju'aymah gas plant, inter-field pipelines, utilities and product handling/storage/infrastructure and support facilities. Foster Wheeler will validate the work undertaken to date and will provide overall project management and engineering services for the central processing facility, including certain procurement and construction management services.

Photo is available from: http://www.fwc.com/enewsroom/images/KHURAIS.jpg

Caption: At the contract signing:

Seated: Mohamed A. Al-Tuwair (left), general manager, Southern Area projects, Saudi Aramco and Steve Davies, chairman & chief executive officer, Foster Wheeler Energy Limited.

Standing (left to right): Salman M. Al-Aradi, company representative, Khurais Projects Dept., Saudi Aramco; Stephen Culshaw, director, commercial operations, Foster Wheeler Energy Limited; Khalid M. Abdulqader, manager, Khurais Development Dept., Saudi Aramco.

Notes to Editors:

1. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, visit our Web site at www.fwc.com.

2. Safe Harbor Statement

This news release contains 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 our expectations regarding revenues (including as expressed by our backlog), 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 under the heading "Business--Risk Factors of the Business" in the Company's most recent annual report on Form 10-K/A 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 power, oil and gas, pharmaceutical, chemical/petrochemical and environmental industries, changes in the financial condition of 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, currency fluctuations, war and/or terrorist attacks on facilities either owned or where equipment or services are or may be provided, outcomes of pending and future litigation, including litigation regarding our liability for damages and insurance coverage for asbestos exposure, protection and validity of patents and other intellectual property rights, increasing competition by foreign and domestic companies, compliance with debt covenants, recoverability of claims against customers and others, changes in estimates used in 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 our control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us.

Source: Business Wire

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