Foster Wheeler Awarded Karsto Engineering Contract

Foster Wheeler AG announced today that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by Aibel AS for the provision of detailed design engineering services to support Aibel, which has been appointed by Statoil as the main engineering, procurement and construction contractor for the Kårstø Development Project (KDP) 2013 for the Kårstø and Kollsnes oil and gas processing plants in Norway.

The Foster Wheeler contract value for this project was not disclosed. A small initial release of work was included in the company’s second-quarter bookings. The majority of Foster Wheeler’s work scope will be included in company’s third quarter 2011 bookings.

Foster Wheeler’s scope of work includes detailed design engineering services for modifications at the Kårstø plant to enable it to process light oil from the Gudrun offshore oil field and condensate from the Sleipner field. Foster Wheeler’s scope of work also covers the upgrading of eight compressors, three at Kårstø and five at Kollsnes. There are two additional scopes of work included as options under the KDP 2013 contract: a boiler upgrade project and hydrogen sulfide removal at Kårstø. This work has not yet been released and is dependent on Statoil choosing to exercise the options.

Statoil is acting on behalf of Gassco. Gassco is the operator for the Kårstø and Kollnes terminals, which are owned by the Gassled joint venture, with Statoil as the technical service provider.

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