Foster Wheeler AG
) has further strengthened its position in the Middle East after
subsidiaries of Foster Wheeler's Global Engineering and
Construction Group (Global E&C) received a contract from
Saudi Aramco, on Dec 20. Following this announcement, share
prices of Foster Wheeler hiked 2.9%.
Although financial terms of the deal were not disclosed the
company included the contract in its third quarter bookings. As
per the contract, Foster Wheeler will provide Front Engineering
and Design (FEED) services for the development of the Fadhili Gas
Program in the Eastern Province of Saudi Arabia. The new Fadhili
Gas Plant will be built approximately 30 kilometers southwest of
the existing Khursaniyah Gas Plant.
Foster Wheeler will perform the FEED for the grassroots
Fadhili Gas Plant. The plant has a total processing capacity of
1.5 billion standard cubic feet per day (BSCFD) of non-associated
gas. This apart the FEED will extend to the onshore Khursaniyah
upstream facilities, the Fadhili downstream pipelines, a
residential camp and industrial support facilities at the new gas
In addition to FEED services, Foster Wheeler's Global
E&C's subsidiary will also prepare cost estimates, carry out
the procurement of long-lead equipment, start basic engineering
design and prepare the invitation to bid packages for the
engineering, procurement and construction (EPC) contracts. After
the project enters the EPC phase and EPC contractors are
appointed, Foster Wheeler will also provide project management
services for EPC.
Earlier, in Oct 22, subsidiaries of Foster Wheeler's Global
E&C had received a FEED contract from Saudi Arabia-based
Saudi Aramco's Khurais Arabian Light Crude Increment Program.
Foster Wheeler's Global E&C Group provides technical and
economic analyses and study/feasibility reports to owners,
investors, developers, operators and governments. These services
include concept and feasibility studies, market studies, asset
assessments, environmental assessments, energy and emissions
management, product demand and supply modeling and technology
Foster Wheeler currently has a Zacks Rank #3 (Hold). Other
better-ranked players in the engineering and heavy industry worth
a look include
Quanta Services, Inc
). While VSE carries a Zacks Rank #1 (Strong Buy), Quanta and
Rexnord have a Zacks Rank # 2 (Buy).
FOSTER WHELR AG (FWLT): Free Stock Analysis
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