Foster Wheeler Awarded EPC Contract in Saudi Arabia

Foster Wheeler Energy Limited and Foster Wheeler Arabia, Ltd. have received a contract from SABIC affiliate, Eastern Petrochemical Company (SHARQ), for the engineering, procurement and construction management contracts for the complete utilities and offsite facilities to support the SHARQ 3rd Expansion Project at Al-Jubail, Saudi Arabia. SHARQ is a 50:50 joint venture between SABIC and SPDC, a Japanese consortium headed by Mitsubishi.

This is a major expansion of SHARQ's existing complex, and will add a total of 2.8 million tonnes per year (tpy) to production, including 1.3 million tpy of ethylene, 700,000 tpy of ethylene glycol, 400,000 of linear low density polyethylene, and 400,000 tonnes of high density polyethylene.

"The offsites and utilities required to support this world-scale expansion are significant and we are delighted to have secured these EPC contracts against strong international competition," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited. "As program management services contractor for the entire 3rd Expansion Project, we have developed a strong working relationship with SHARQ and its partners during the FEED phase. I am pleased that we now have the opportunity to extend and reinforce this relationship. As PMC for the entire expansion and EPC contractor for the offsites and utilities, we are uniquely positioned to integrate and co-ordinate the various elements of this complex project to achieve SHARQ's beneficial operations target."

Foster Wheeler's scope of work as PMC included the FEED preparation, and preparation and issue of invitations to bid for engineering, procurement and construction (EPC) contracts.

Foster Wheeler is also managing all EPC contractors and providing the overall management, coordination and control of all phases of the expansion program. The project is scheduled for completion in early 2008.

"We are pleased to continue our relationship with Foster Wheeler for this important element of the project," commented Mohammad Al-Jabri, president, Eastern Petrochemical Company. "After the expansion, SHARQ will be one of the world's largest petrochemical sites, and the world's largest single producer of ethylene glycol, boosting SABIC's contribution to the national economy and enhancing its competitiveness worldwide."

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Posted 06/10/05

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