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Foster Wheeler Awarded EPCm Contract for Propylene Oxide Unit in Saudi Arabia for Sadara Chemical Company

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Foster Wheeler AG announced today that subsidiaries of its Global Engineering and Construction Group have been awarded an engineering, procurement and construction management (EPCm) contract by Aramco Overseas Company B.V. (AOC), a subsidiary of Saudi Aramco, and by Dow Europe Holding B.V. (Dow) for a propylene oxide (PO) unit at Jubail Industrial City in the Eastern Province of the Kingdom of Saudi Arabia.

This unit will be part of a world-scale, fully integrated chemicals complex, one of the largest of its kind in the world, which will be constructed, owned and operated by Sadara Chemical Company (Sadara), a joint venture between Saudi Aramco and Dow. This contract has been awarded as an extension to the front-end engineering design (FEED) contract awarded to Foster Wheeler by AOC and Dow in 2008.

The Foster Wheeler contract value for the project was not disclosed and will be included in the company's fourth-quarter 2011 bookings.

The world-scale unit is expected to be completed during the first quarter of 2015.

"A key factor in this win was the outstanding Foster Wheeler performance delivered on previous work for Saudi Aramco and Dow," said Umberto della Sala, Chief Operating Officer of Foster Wheeler AG. "First, we received an excellent performance rating from both clients for the significant FEED work that we carried out for the new Jubail complex. Second, we recently completed a new propylene oxide facility in Thailand for the Dow-Siam Cement Group joint venture. The new facility was delivered by our Thailand operation on time, within budget, with an outstanding safety record and to very high quality standards. The PO unit of the Jubail project will be managed by our Thailand operation, bringing the additional benefit of rolling over the high-performing, experienced Thai PO project team onto the Jubail project. We also continue to support Saudi Aramco and Dow by executing additional FEED work scopes and assisting in the management of various other elements of the overall Jubail project."

Published 13/02/2012

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Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 12,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company's Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company's Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland.

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