A subsidiary of
Foster Wheeler AG
) Global Engineering and Construction Group (E&C) recently
received a contract from
) to conduct a feasibility study to upgrade the latter's
Mongstad Refinery in Norway. Foster has put the contract in its
second quarter bookings, but other financial terms of the
contract were kept under wraps. The study is expected to complete
by the end of 2013.
The scope of the contract requires Foster to discover the best
possible technical solution for the upgradation of the refinery.
Statoil requires a detailed study report and also the total cost
estimate. The upgrade is important for Statoil in order to
withstand the competition in the highly demanding oil & gas
Through this study, Statoil primarily aims to understand the
crude feedstock flexibility requirements to increase diesel
production. In addition, the study will also enable Statoil to
produce ultra-low-sulfur diesel. For upgrading the refinery,
Statoil expects to install a new vacuum distillation unit along
with the new diesel hydrotreaters.
Foster's E&C Group has the core competence and the
technical expertise in conducting such detailed feasibility
study. This is because, it owns one of the leading technologies
(SYDEC SM delayed coking) that is used in refinery residue
upgrading, in addition to other refinery residue upgrading
technologies (solvent deasphalting and visbreaking), and a
hydrogen production process used in oil refineries and
petrochemical plants. The Global E&C Group also has a
proprietary sulfur recovery technology, which is used to treat
gas streams containing hydrogen sulfide for the purpose of
reducing the sulfur content of fuel products and to recover a
saleable sulfur by-product.
Foster Wheeler's Global E&C Group provides technical and
economic analyses and study 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 currently has a Zacks Rank #3 (Hold). Other stocks in
the industry worth buying at the moment are
Pernix Group Inc.
). Both have a Zacks Rank #2 (Buy).
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