Foster Wheeler AG
) Global Engineering and Construction Group (Global E&C)
received a front-end engineering design (FEED) contract from
Saudi Arabia-based Saudi Aramco's Khurais Arabian Light Crude
Increment Program. The financial terms of the deal were
undisclosed, although the transaction is set to be included in
the second quarter bookings of the company.
The scope of the project entails Foster Wheeler to provide
core services including FEED, cost estimates and also
specifications for the required material and equipment. The
company is also required to provide procurement assistance for
the items that have long-leads. Foster Wheeler expects to
complete the FEED by the second quarter of 2014.
Saudi Aramco's main objective of this Increment program is to
increase the production capacity as well as to install a
satellite Gas Oil Separation Plant (GOSP) for raising the
production in Mazalij and Abu Jifan fields. After the completion
of this program, production at Khurais Central Processing
Facilities (CPF) is expected to increase by 300,000 barrels of
oil per calendar day (BPCD) from its current capacity of
In 2005-06, Foster Wheeler had provided the initial FEED for
the Khurais CPF. It had then also provided engineering,
procurement and construction (EPC) services for the CPF gas plant
through joint venture collaboration. Apart from this, Foster
Wheeler has provided FEED for Saudi Aramco's other major
developments at Haradh, Qatif, Manifa and Karan oil and gas
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 #4 (Sell).
Some other stocks in the industry that are favorably placed
Pernix Group Inc
Jacobs Engineering Group Inc.
). All three carry a Zacks Rank #2 (Buy).
FOSTER WHELR AG (FWLT): Free Stock Analysis
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