Foster Wheeler Awarded Contracts by Shell Eastern Petroleum

Foster Wheeler Energy Limited (FWEL), and its Singapore subsidiary, Foster Wheeler Eastern Private Limited (FWEPL), have been awarded contracts by Shell Eastern Petroleum (Pte) Ltd. (SEPL) for two basic design engineering packages (BDEP) associated with a world-scale ethylene oxide/mono-ethylene glycol (EO/MEG) plant and a significant refinery modification project in Singapore. FWEL is executing the BDEP for the new EO/MEG plant on Jurong Island and FWEPL is executing the BDEP for the modifications at Shell's Pulau Bukom Refinery, located on an adjacent island.

"Shell intends to roll over from the BDEP phase to the implementation phase with the appointment of Foster Wheeler as the engineering, procurement and construction management contractor for the EO/MEG plant and a significant part of the refinery modifications later in 2006, when the final investment decision will be taken," said Fang Yea Yee of SEPL, general manager for the project. "We are pleased to be working with Foster Wheeler and look forward to the successful outcome we expect. As Foster Wheeler was involved in the execution of a similar EO/MEG plant in our joint venture complex in China, we believe that we will be able to benefit from the expertise and lessons learned for the Singapore project."

"We are able to deliver added value to Shell by combining different strengths from within our Global Engineering and Construction (E&C) Group," said Umberto della Sala, chief executive officer, Foster Wheeler Global E&C Group.

The new EO/MEG plant, scheduled for completion in 2009, will use feedstock from Shell's proposed ethylene cracker located on neighboring Bukom Island. Both the cracker and the EO/MEG plant are part of an overall investment program, which includes integration of the new facilities with Shell's existing refinery at Bukom to capture the benefits of oil-chemicals integration.

The Bukom refinery modifications, which will provide feedstock to the proposed ethylene cracker, are also due for completion in 2009. The proposed modifications include revamp of existing units, addition of new units, new and revamped tankage facilities, plus tie-ins and interconnections.

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Posted 24/01/06

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