Foster Wheeler to Proceed with EPC Phase for Shell Refinery

Foster Wheeler Ltd. announced today that its UK subsidiary, Foster Wheeler Energy Limited (FWEL), and its Singapore subsidiary, Foster Wheeler Asia Pacific Pte. Ltd. (FWAPPL), both of which are part of its Global Engineering and Construction Group, have been instructed by Shell Eastern Petroleum (Pte.) Ltd. (SEPL) to proceed with the initial engineering, procurement and construction management (EPC) for a world-scale ethylene oxide/mono-ethylene glycol (EO/MEG) plant and a significant refinery modification project in Singapore.

The company expects to make further bookings in 2006 upon signature of the contracts for the full EPC scope.

FWEL has already completed the basic design and engineering package (BDEP) for the new EO/MEG plant, which utilizes Shell's proprietary "Omega" technology. Foster Wheeler's Asia Pacific operations have completed the BDEP for the modifications to the Bukom Refinery and project specification for the sulfur recovery and high vacuum unit. Foster Wheeler will now carry this work through into the implementation phase of the project.

"We are pleased to have appointed Foster Wheeler as our EPC contractor and look forward to the successful outcome we expect," said Pieter Eijsberg of SEPL, general manager for the project.

"As one of the leading engineering, procurement and construction contractors in Singapore, Foster Wheeler has a 30-year track record of delivering safe and successful projects," said Umberto della Sala, chief executive officer, Foster Wheeler Global Engineering and Construction Group. "We are proud to assist Shell in realizing their investment objectives and intend to build on our own demanding high standards and our excellent working relationship with Shell to deliver this new EO/MEG plant and the refinery modifications safely and successfully."

The new 750,000 tonnes per annum EO/MEG plant, to be located on Jurong Island, will use feedstock from an ethylene cracker to be built by others on Bukom Island, Singapore. Both the cracker and the EO/MEG plant are part of a project known as the Shell Eastern Petrochemicals Complex (SEPC), which includes in its scope the construction and integration of the new facilities with Shell's existing refinery at Bukom to capture the benefits of oil-chemicals integration.

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Posted 03/08/06

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