Foster Wheeler Wins Basic Design and Feed Contract for Two Grassroots Refineries in Brazil

ZUG, Switzerland--(BUSINESS WIRE)-- Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has been awarded a basic engineering design and front-end engineering design (FEED) contract for two grassroots refineries in Brazil for Petróleo Brasileiro S.A., (Petrobras). The Premium I Refinery will be a dual train, 600,000 barrels per stream day (BPSD) facility in Maranhao State, and the Premium II Refinery will be a single-train 300,000 BPSD facility in Ceara State. Foster Wheeler will be the prime subcontractor to Honeywell’s UOP, the managing process technology licensor.

The value of the contract was not disclosed. The award will be included in Foster Wheeler’s fourth-quarter 2010 bookings.

The contract calls for the provision of basic design and FEED for the main process units and auxiliary units. Each of the three refinery trains will consist of a crude vacuum distillation unit, a four--drum delayed coker based on Foster Wheeler’s SYDEC? technology, a hydrocracker, a distillate hydrotreater, a naphtha hydrotreater based on UOP technology, a hydrogen unit based on Foster Wheeler’s hydrogen production technology, a sour water stripper and amine regeneration and a sulfur recovery unit. Both refineries will be designed to produce diesel.

“We are excited to work with UOP as the prime subcontractor for these strategically important projects in Brazil,” said Umberto della Sala, chief executive officer of Foster Wheeler AG. “This very large award reflects our position in and commitment to Brazil and our world-class refinery expertise. The award also demonstrates our ability to provide a high level of local content through our own subcontractors or affiliates, a requirement that is becoming increasingly common in the fastest-growing regions of the world. Establishing a strong presence in Brazil on a major project for Petrobras is a significant milestone for Foster Wheeler.”

Foster Wheeler AG is a global engineering and construction contractor 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, 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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Source: Foster Wheeler AG