Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by Statoil ASA to undertake a feasibility study for the upgrade of Statoil’s Mongstad Refinery in Norway.
The Foster Wheeler contract value was not disclosed and was included in the company’s second-quarter 2013 bookings.
Foster Wheeler’s scope includes performing high-level process simulations to identify the optimum technical solution for the refinery upgrade, and production of a detailed study report and a total installed cost estimate. The study is scheduled for completion at the end of 2013.
The refinery upgrade project by Statoil aims to address crude feedstock flexibility requirements and to increase diesel production, including the production of ultra-low-sulfur diesel. The upgrade is expected to include the installation of a new vacuum distillation unit, together with new diesel hydrotreaters.
“This award strengthens Foster Wheeler’s excellent relationship with Statoil,” said Umberto della Sala, President and Chief Operating Officer of Foster Wheeler AG. “We will apply our in-depth refining expertise and technology know-how to assist Statoil in developing a viable plan for implementing its refinery upgrade, in line with its objectives.”
Asset Owner Representative, Strategy Manager Lars Thorstholm, Statoil ASA said, "This is an important project for Statoil to improve the competitiveness of the Mongstad Refinery. Statoil are looking forward to benefitting from Foster Wheeler's comprehensive refining and hydrocarbon process technology expertise."