A subsidiary of Foster Wheeler AG’s (FWLT) Global Engineering and Construction Group received a contract from BP Exploration Operating Company Limited to provide engineering, procurement and construction management services to BP Exploration’s Enhanced Gas Separation Project (EGSP) in Scotland.
The company’s first-, second- and third-quarter 2011 bookings included the interim releases of work with the main release to be included in the bookings of the final quarter of the year. The value of the contract for Foster Wheeler is undisclosed.
The pre-front-end design (pre-FEED) and FEED on the project have already been completed by Foster Wheeler. The project involves debottlenecking of the Forties Pipeline System (FPS) crude degasification facilities at BP Exploration’s Kinneil terminal to allow it to handle high gas-to-oil ratio unstabilized crude oils and natural gas liquids (NGLs). The said work entails the modification of the existing plant, including improvements to heater and process control systems, as well as installation of new facilities like crude coolers and cooling water system. The scheduled time for the completion of the project is 2013.
Foster Wheeler and BP have worked as cohorts in the designing phase of the contract. The company has also helped BP in the presentation of the project status to other concerning parties in the FPS.
The FPS serves both UK and Norwegian sectors of the central and northern North Sea. It is an integrated oil and gas liquid transportation and processing system with a capacity, estimated by BP, of above one million barrels per day and carries around 40% of UK’s oil production. The system receives oil and gas liquids from more than 30 offshore fields and the St. Fergus gas terminal.
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. The major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).
Currently, Foster Wheeler shares retain a Zacks #5 Rank (short-term Strong-Sell recommendation).
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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