Statoil awards Foster Wheeler pre-FEED contract to expand production at Melkoya LNG facility in Norway

Source: Foster Wheeler

Foster Wheeler AG (Nasdaq: FWLT) has received a contract from Statoil Petroleum AS (NYSE:STO) for the pre-front-end engineering (pre-FEED) for the Snøhvit Future Development Project at Statoil's Melkøya-based LNG facility on Melkøya Island approximately 450 km north of the Arctic Circle, Hammerfest, Norway. 

The Foster Wheeler contract value for this project was not disclosed and the first release of work will be included in the company's first-quarter 2011 results. Statoil has informed Foster Wheeler that further releases of pre-FEED work to Foster Wheeler under the existing contract are likely to be made during 2011, depending upon the development option(s) selected by Statoil. 

Foster Wheeler's scope of work will include concept design activities in order to support the finalization of the development concept and of the plant capacity for the expansion of LNG production at the Melkøya LNG facility, as well as energy optimization investigations. Foster Wheeler's involvement through this contract will continue through 2011. 

"We have been working with Statoil for some time on a number of studies for the expansion of the Melkøya LNG facility," said Umberto della Sala, interim chief executive officer, Foster Wheeler AG. "This latest award reflects Statoil's confidence in our in-depth LNG expertise and the combined added value delivered by our specialist studies team in our Business Solutions Group and by our engineering, procurement and construction experts in developing execution strategies to underpin the concept development, including modularization. Delivering technically complex projects in challenging locations is an area in which we specialize and have a long and proven track record." 

The existing Snøhvit LNG facility is the world's northernmost LNG facility and has a design capacity of 4.2 million tonnes per annum (mtpa). Commissioned in 2007, it processes gas transported through 143-km pipeline from the subsea facilities on the Snøhvit and Albatross fields, which comprise the first offshore developments in the Barents Sea.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs