Foster Wheeler AG (Nasdaq:FWLT) announced today that a subsidiary of its
Global Engineering and Construction Group, in joint venture with Taknia
Libya Engineering Company (Taknia), has been awarded a front-end
engineering design (FEED) contract by Nafusah Oil Operations B.V. Libyan
Branch for an onshore oilfield development, known as the Area 47
Development Project in Libya. Area 47 (North Hamada Field) is located in
the Hamada region, approximately 200 km south of Tripoli, in the
Ghadames Basin.
The Foster Wheeler contract value was not disclosed and will be included
in the company’s second-quarter 2014 bookings.
The planned development will consist of approximately 34 producing
wells, including eleven existing wells and approximately 23 new wells,
flow-lines and a common gathering trunk-line to transport the well
fluids to the central gas oil separation facility for primary treatment.
After separation, the oil and gas produced will be exported through new
pipelines that will be connected into existing pipelines carrying
products to the Mellitah delivery terminal, in the northwest of Libya,
on the Mediterranean Sea, for export. The planned design capacity of the
gas oil separation facility is 50,000 barrels per day (BPD) of oil, 90
million standard cubic feet per day of gas and associated water (to be
re-injected into the reservoirs).
“Foster Wheeler has been involved in the Area 47 Development Project for
some time, having completed the conceptual study in 2012 and worked on
the FEED definition in 2013,” said Roberto Penno, Chief Executive
Officer, Foster Wheeler Global Engineering and Construction Group. “Area
47 is located in a relatively remote part of Libya, so the facilities
are being designed on a modular basis in order to minimize on-site
construction and installation activities, and to accommodate future
expansion.”
“Taknia Libya Engineering Company looks forward to the joint execution
of this FEED project with Foster Wheeler,” said Tayeb Said, Managing
Director, Taknia Libya Engineering Company. “We hope this partnership
will open the door for more co-operation between the two parties to
execute more projects in the Libyan market and more significantly help
enhance the technology transfer program that Taknia is implementing.”
“To achieve first oil production by the end of 2016, Nafusah is looking
forward to have this FEED project completed on schedule or even before
in order to start the second phase of the project as early as possible
in 2015,” said Mohamed Jamaleddin, Chairman of the Operating Management
Committee, Nafusah Oil Operations B.V. Libyan Branch. “We trust that the
in-depth technical expertise of the Foster Wheeler and Taknia joint
venture will ensure the successful and safe delivery of a high quality
project for Nafusah.”
Nafusah Oil Operations was formed as a joint operating company by PT
Medco Energi Internasional, through its subsidiary Medco International
Ventures Limited (MedcoEnergi), of Indonesia, with its partners, the
National Oil Corporation of Libya and the Libyan Investment Authority.
Nafusah Oil Operating Company will act as the operator for the
development and production phases of Area 47.
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, minerals 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 website 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 for the year ended December 31, 2013, which
was filed with the U.S. Securities and Exchange Commission on February
27, 2014, and the following, could cause the Company’s business
conditions and results to differ materially from what is contained in
forward-looking statements including: the timing and success of the
proposed offer and acquisition of the Company by AMEC plc, the risk that
the Company’s business will be adversely impacted during the pending
proposed offer and acquisition of the Company by AMEC plc, benefits,
effects or results of the Company’s redomestication to Switzerland,
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 with or furnished to the Securities and Exchange
Commission.
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