Foster Wheeler Wins FEED Framework Agreement for Karsto Project

Foster Wheeler's Global Engineering and Construction Group has entered into a Framework Agreement, awarded by Statoil, acting on behalf of Gassco AS as operator for the Gassled joint venture, for front-end engineering design (FEED) services valid through 2013 to support the development of the Kårstø oil and gas processing plant in Norway. The Kårstø processing plant is ranked as the third largest liquid petroleum gas (LPG) export facility in the world. Statoil is modifying, on behalf of Gassco, the processing plant, via the Kårstø Life Extension project, to enable it to process new light oil/condensate production coming on stream in the Norwegian North Sea.

The Framework Agreement covers a series of different FEED projects. Foster Wheeler has been awarded the first FEED call-off contract for the Gudrun Onshore Modifications project, the objective of which is to enable the Kårstø plant to process light oil from the new Gudrun Field.

The Foster Wheeler contract value for the Gudrun Onshore Modifications FEED was not disclosed and will be included in the company's second-quarter 2010 bookings. The booking values for subsequent FEED awards will be recorded as individual call-off contracts are received.

"This Framework Agreement represents an important opportunity for Foster Wheeler to expand its relationship with Gassco and Statoil. We have the right upstream expertise and project execution skills to deliver high quality FEEDs for Gassco and Statoil and we also have a track record of project success in Norway and of building strong and long-lasting relationships through delivering excellence in alliance-type relationships," said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.

Gassco is operator for the Kårstø terminal, which is owned by the Gassled joint venture, with Statoil as the technical service provider.