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Foster Wheeler Wins Indonesian Deal

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Foster Wheeler AG (FWLT) received a contract to deliver project management consultancy services for the Residue Fluid Catalytic Cracker (:RFCC) Project at the Cilacap Refinery, on the island of Java, Indonesia. The contract has been awarded by the national oil company of the Republic of Indonesia, PT Pertamina (Persero).

As a consultant project manager, Foster Wheeler will look into engineering, procurement and construction of the refinery upgrade at Cilacap on behalf of the Indonesian oil company. The contract value is undisclosed but has been included in the first quarter bookings of the company.

The project involves construction of the 62,000 barrels per day (:BPD) RCC Complex. An RFCC, a new LPG MeroxTM unit (Merox is a trademark of UOP LLC), and propylene recovery and gasoline hydrotreating units will be included in this complex. The fuel generation capacity of the refinery will be increased with the addition of the RFCC unit.

The fuel generated is intended to meet European Union EURO IV quality specifications. The upgrade would increase liquid petroleum gases production by 350,000 tons per annum (:TPA) and produce more than 140,000 TPA of propylene. The upgrade is expected to be completed in 2014.

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, the stock retains a Neutral rating on Foster Wheeler, with a Zacks #3 Rank (short-term Hold recommendation).

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