SOURCE: Foster Wheeler | 23 Aug 2012

Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by Petróleo Brasileiro S.A. (Petrobras) for a world-scale grassroots gas-to-chemicals complex in Linhares, Espirito Santo State, southeast Brazil, called Complexo Gás-Químico UFN-IV. Foster Wheeler will provide basic engineering design (BED), front-end engineering design (FEED), and technical assistance and training during the engineering, procurement, construction (EPC) phase through to successful completion of the plant performances tests.

The Foster Wheeler contract value was not disclosed. The BED and FEED will be included in the company's third-quarter 2012 bookings. The provision of technical assistance and training will be booked at a later date, after the FEED is complete, when Petrobras advises that it is proceeding with the EPC phase of the project.

Foster Wheeler will act as integrator for the entire complex, managing the overall BED and FEED, including managing the process licensors and Brazilian subcontractors. The BED/FEED phase is scheduled for completion at the end of 2013.

The complex is expected to produce in excess of one million tonnes per annum (TPA) of ammonia and urea fertilizers, methanol, acetic acid, plus formic acid and melamine, helping to reduce Brazil's imports of these products.

"Our proven experience in executing large, complex integrated chemicals projects and our ability to support Petrobras through to start-up of this world-scale facility were key to our success in winning this important contract," said Umberto della Sala, Chief Operating Officer, Foster Wheeler AG.



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