Foster Wheeler AG (Nasdaq:FWLT) announced today that subsidiaries of its Global Engineering and Construction Group have been awarded contracts by S-OIL Corporation for the front-end engineering design (FEED) for a residue upgrading project at S-OIL’s Onsan refinery in Ulsan, South Korea.
The Foster Wheeler contract values were not disclosed and will be included in the company’s first-quarter 2014 bookings.
The upgrade of the refinery includes the addition of a residue hydrodesulfurization unit, a residue fluid catalytic cracker and multiple downstream upgrading units to enable the refinery to produce more higher value products and, in particular, maximize production of polymer-grade propylene.
In addition to executing the FEED, Foster Wheeler will also prepare the tender for the engineering, procurement and construction (EPC) phase, procure long-lead items, evaluate the EPC bids, and prepare a cost estimate to support S-OIL’s final investment decision.
“This award illustrates our strategy to deploy our global network of operations, with our execution centers working together to support our clients through the entire lifecycle of their planned investments,” said Roberto Penno, chief executive officer, Foster Wheeler Global Engineering & Construction Group. “Foster Wheeler’s Business Solutions Group in Reading, UK, performed the pre-FEED, and our execution centers in the UK and Thailand will now work together on the FEED to support S-OIL in the development of this major upgrade project at S-OIL’s world-scale refinery.”