Global Engineering and Construction Group, a wholly-owned subsidiary of Foster Wheeler AG (FWLT), has recently signed a three-year agreement with Statoil Petroleum AS for delivering front-end engineering design (FEED) services for Statoil’s Kårstø and Kollsnes processing facilities in Norway and north-west of Bergen, respectively.
Gassco is the main operator for the Kårstø and Kollsnes processing plants, owned by the Gassled joint venture, where Statoil mainly provides technical services. Therefore, as per this agreement, Statoil will be taking decisions or rather act on behalf of Gassco.
The Kårstø processing plant plays a critical key role in the transport and treatment of gas and condensate from 28 fields on the Norwegian continental shelf. These fields are basically connected to the plant through pipelines. In addition, the Kårstø complex is the world’s third largest exporter of liquefied petroleum gases (LPG) and is also the biggest in Europe.
The processing plant at Kollsnes treats gas from the Troll, Kvitebjørn and Visund fields located in the North Sea and processes approximately 143 million standard cubic meters per day.
Statoil also has the option of extending the agreement for another two years and for Foster Wheeler to execute concept studies as well as FEEDs. However, the value of the agreement was not disclosed and bookings will be recorded by Foster Wheeler as and when Statoil begins work.
Earlier in September 2012, Foster Wheeler’ssubsidiary - Global Power Group – won a contract from SCS Proyectos, S.A.P.I. de C.V. The contract pertains to the design and supply of two heat recovery steam generators that need to be installed in a cogeneration power plant for the TEREFTALATOS MEXICANOS S.A. DE C.V. TOP 1002 Cogeneration Project in Cosoleacaque, Veracruz, Mexico.
Foster Wheeler currently carries a Zacks #3 Rank, implying a short-term ‘Hold’ rating on the stock.