Foster Wheeler Awarded FEED for Chevron's Olokola Gas Supply Project in Nigeria

Foster Wheeler Ltd. has announced that two subsidiaries in its Global Engineering and Construction Group, Foster Wheeler Energy Limited and Foster Wheeler (Nigeria) Limited, in a joint venture with National Engineering & Technical Company Limited (NETCO), have been awarded the front-end engineering design (FEED) by Chevron Nigeria Limited (CNL) for the non-associated gas wellhead platforms and pipelines portion of CNL's Olokola Gas Supply Project (OKGS). CNL is a joint venture partner of the Nigerian National Petroleum Corporation (NNPC). NETCO is a wholly owned subsidiary of NNPC.

The contract, to be executed in Nigeria, is the first work authorization received from CNL under the existing Foster Wheeler/NETCO three-year term services contract with CNL, which was announced at the end of last year.

"Foster Wheeler is delighted to strengthen its commitment in Nigeria through this award," said Anita Omoile, director of Foster Wheeler (Nigeria) Limited. "The upstream oil and gas sector is a strategically important market for Foster Wheeler and is one in which we have a long and successful track record. We are committed to working very closely with CNL and with NETCO to deliver a high quality FEED which fully meets the project's objectives."

The OKGS project is located offshore Nigeria and will provide 2,300 million standard cubic feet per day of natural gas and associated liquids to the proposed Olokola LNG liquefaction plant. The new facilities are located approximately 10 to 40 kilometers offshore and will include one 15,000 ton topsides production platform, one 14,000 ton topsides production platform, two living quarters platforms, each to accommodate approximately 60 people, nine wellhead platforms, flares, bridges and approximately 400 miles of sub-sea pipelines for gathering and delivering the gas to shore.

The Foster Wheeler/NETCO team will execute the FEED, scheduled to be completed by the end of 2006, for the nine wellhead platforms and the pipelines.

"This is an important project for us, especially from the standpoint of developing local capacity and competence through the promotion of alliances between local engineering companies and their foreign counterparts. We are confident that Foster Wheeler and NETCO will deliver on time and within budget," commented Fred Nelson, chairman and managing director of Chevron Nigeria Limited.

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Posted 04/08/06

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