Foster Wheeler Awarded FEED Contract in Tatarstan

Foster Wheeler Ltd's subsidiary, Foster Wheeler France S.A., part of its Global Engineering and Construction Group, has been awarded the front-end engineering design (FEED) by CJSC Nizhnekamsk Refinery for a new Complex of refining and petrochemical plants to be constructed in Nizhnekamsk, in the Republic of Tatarstan, Russian Federation.

This award has been made within the framework of an existing project management consultancy (PMC) contract awarded to Foster Wheeler France by CJSC Nizhnekamsk Refinery in 2005.

The Complex consists of an oil refinery, aimed at processing seven million tons of crude oil per year, a deep conversion plant and a petrochemical plant. The oil processing part of the Complex includes aromatics units and deep conversion section with a fluidized catalytic cracker, a distillate hydrocracker, a delayed coker and a gasification plant. The petrochemical part of the Complex will include purified terephthalic acid, polyethylene terephthalate, linear alkylbenzene and polypropylene units, plus the associated power generation facilities. The expected total investment cost of the Complex will be in excess of three billion US dollars. The current plan of CJSC Nizhnekamsk Refinery is to complete the complex in three different phases between 2008 and 2010.

Foster Wheeler has to develop a complete FEED package, including definition of scope and configuration for all of the new process units, which is currently being undertaken by Foster Wheeler, using the experience and expertise of its operations in Milan, Paris, Reading and Moscow. The selection of licensors for the oil processing and petrochemical plants of the Complex has been completed by CJSC Nizhnekamsk Refinery with the support of Foster Wheeler.

Foster Wheeler's Moscow office intends to supervise and coordinate the FEED activities being undertaken by the Russian Design Institute JSC VNIPIneft (Moscow) for the non-licensed refinery units, including the atmospheric crude distillation and the vacuum distillation units, as well as utilities and offsites.

"We are delighted to receive a further award for this major complex in Tatarstan," said Umberto della Sala, chief executive officer of Foster Wheeler's Global Engineering & Construction Group. "This latest award recognizes the excellent work already fulfilled by Foster Wheeler for CJSC Nizhnekamsk Refinery and confirms our commitment to delivering successful projects in the Russian Federation. Working on the project of Nizhnekamsk Complex we are using the considerable refining and petrochemical strengths and skills of three of our major engineering centers, and also our recently established Moscow operating office."

"We have been working successfully with Foster Wheeler since 2001 and it is no surprise that we selected them as a Project Management Consultant for our Project," declared Khamza A. Bagmanov, general director of CJSC Nizhnekamsk Refinery. "We are pleased with Foster Wheeler's professionalism, responsiveness to our needs and its capability to mobilize highly qualified resources from its European offices as well as from its Moscow operations."

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Posted 21/09/06

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