Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has been awarded a project management consultancy (PMC) services contract by South Oil Company (SOC) for the Iraq Crude Oil Export Expansion Project onshore in southern Iraq and offshore in Iraqi waters. SOC is a company under the Ministry of Oil of the Republic of Iraq.
The Foster Wheeler contract value for this project was not disclosed and will be included in the company's third-quarter 2010 bookings.
The project will include the installation of two new onshore and offshore pipelines plus three single point moorings and a central manifold and metering platform. Scheduled for completion by July 2013, the project is expected to boost Iraq's Basra export capacity from 1.8 million barrels per day (bpd) to 4.5 million bpd by 2014.
Foster Wheeler's scope of work will include monitoring and administering the purchase orders and contracts that have been placed by SOC in accordance with the recommendations made by Foster Wheeler during the execution of the basic engineering contract for this investment. These awards include the critical long-lead equipment items, such as valves, linepipe and the single-point moorings and the offshore and onshore engineering, procurement and construction (EPC) contract. In addition, Foster Wheeler will make the award recommendation for the EPC contract for an offshore central manifold and metering platform and associated jacket and will provide subsequent administration and management of this contract.
"Foster Wheeler is delighted to have been involved in this strategically important project since its inception in 2007 and is committed to working with SOC to support the development of this vital oil export infrastructure," said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.
"South Oil Company is committed to completing this world-class project in accordance with the schedule requirements," commented Dhyaa Jafaar Hyjam, director-general of SOC. "All agencies are working together to achieve this goal and SOC is pleased that Foster Wheeler will be a key player in ensuring the successful realization of increased oil export capacity."