Foster Wheeler Secures Statoil Snohvit Development Contract

Foster Wheeler Secures Statoil Snohvit Development Contract

Thursday, April 14, 2011
Foster Wheeler AG

Foster Wheeler's subsidiary Global Engineering and Construction Group has received a contract from Statoil Petroleum AS for the pre-front-end engineering (pre-FEED) for the Snohvit Future Development Project at Statoil's Melkoya-based LNG facility on Melkøya Island approximately 450 km north of the Arctic Circle, Hammerfest, Norway.

The Foster Wheeler contract value for this project was not disclosed and the first release of work will be included in the company's first-quarter 2011 results. Statoil has informed Foster Wheeler that further releases of pre-FEED work to Foster Wheeler under the existing contract are likely to be made during 2011, depending upon the development option(s) selected by Statoil.

Foster Wheeler's scope of work will include concept design activities in order to support the finalization of the development concept and of the plant capacity for the expansion of LNG production at the Melkoya LNG facility, as well as energy optimization investigations. Foster Wheeler's involvement through this contract will continue through 2011.

"We have been working with Statoil for some time on a number of studies for the expansion of the Melkoya LNG facility," said Umberto della Sala, interim chief executive officer, Foster Wheeler AG. "This latest award reflects Statoil's confidence in our in-depth LNG expertise and the combined added value delivered by our specialist studies team in our Business Solutions Group and by our engineering, procurement and construction experts in developing execution strategies to underpin the concept development, including modularization. Delivering technically complex projects in challenging locations is an area in which we specialize and have a long and proven track record."

The existing Snohvit LNG facility is the world's northernmost LNG facility and has a design capacity of 4.2 million tonnes per annum (mtpa). Commissioned in 2007, it processes gas transported through 143-km pipeline from the subsea facilities on the Snohvit and Albatross fields, which comprise the first offshore developments in the Barents Sea.