Global Engineering and Construction Group of Foster Wheeler AG (FWLT) has been granted release to perform the second phase work for the Modernization of the Refinery in Barrancabermeja (PMRB) in Colombia. The release has been given as per an existing contract with Ecopetrol S.A and includes additional project management consultancy (PMC) and front end engineering design (FEED)and detailed engineering for the crude unit restoration.
The company will also provide support to Ecopetrol in the selection process for engineering, procurement and construction (EPC) contracts, and control and supervise the EPC and construction contractors. The second phase of the PMRB has been approved by the board of directors and being proceeded by Ecopetrol. The upgrade of the refinery will decline the production of fuel oil thus meeting the clean fuels product specifications in Columbia while enhancing profitability.
This release includes additional project management consultancy (PMC) and front end engineering design (FEED), detailed engineering for the crude unit revamps, assisting Ecopetrol in the selection process for engineering, procurement and construction (EPC) contracts, and control and supervision of the EPC and construction contractors.
The value of the contract has not been disclosed by Foster Wheeler. The contract has been included in the company’s second-quarter 2011 bookings. The contract was first entered in November 2008 and the second-quarter 2011 booking was the largest single booking made against this contract.
Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States. The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. Major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).
We continue to maintain a Neutral rating on Foster Wheeler, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.
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