Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has been awarded a project management and consultancy (PMC) services contract by Kuwait National Petroleum Company (KNPC) for its Clean Fuels Project at the Mina Al-Ahmadi and Mina Abdullah Refineries in Kuwait.
The Foster Wheeler scope revenue value of the contract is $500 million and will be included in the company’s fourth-quarter 2012 bookings.
KNPC’s Clean Fuels Project is a major upgrade and expansion of the Mina Al-Ahmadi and Mina Abdullah Refineries to increase their combined throughput by 264,000 barrels per stream day to 800,000 barrels per stream day. The objective is to increase conversion of fuel oil to higher value products in order to meet expected market demand and tighter specifications (one percent) for the sulfur content of transportation fuels.
Foster Wheeler’s scope of work includes the provision of project management services during the tendering phase for the main EPC contracts, and management of the EPC contractors through to completion of performance testing. The Clean Fuels Project is expected to be completed during the second quarter of 2018.
“Foster Wheeler’s proven project management capabilities, our experience in executing mega-projects, and the breadth of our refining technical expertise were critical factors in our success in winning this significant award,” said Umberto della Sala, Chief Operating Officer, Foster Wheeler AG.
“The Clean Fuels Project is a critical mega project that will shape the future of Kuwait’s refining capability while driving the highest standards of commitment to the environment,” said Fahed Salem Al Ajmi, Chairman and Managing Director, Kuwait National Petroleum Company. “KNPC and Foster Wheeler have enjoyed a long-standing business association and we look forward to a true partnership in bringing the CFP to its successful commissioning.”