Chiyoda-Foster Wheeler Secures LNG Train EPC Contract in the Sultanate of Oman

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Jan. 15, 2003

Foster Wheeler Ltd. (NYSE: FWC) today announced that Chiyoda-Foster Wheeler and Company LLC has been awarded a contract by the Government of the Sultanate of Oman, represented by the Ministry of Oil and Gas, for the detailed engineering, procurement and construction (EPC) of a new liquefied natural gas (LNG) train at Qalhat, near Sur, the Sultanate of Oman. The contract includes construction of additional LNG storage facilities as an option.

Currently, the formation of a new joint venture is underway with the Government of Oman, Oman LNG L.L.C. and Union Fenosa S.A. as shareholders. The EPC contract will be transferred to the new joint venture in due course.

The new LNG train will be built adjacent to the existing Oman LNG complex at Qalhat, where two identical LNG trains, each with a capacity of 3.3 million tonnes per year, have been operating since early 2000. During the completion of the existing two trains for Oman LNG L.L.C., Chiyoda-Foster Wheeler achieved the highest quality and an outstanding safety record while performing within budget and on a fast project schedule.

Through the excellent performance in the EPC for the existing facilities, as well as the project specification work for the new LNG train, Chiyoda Foster Wheeler demonstrated its expertise as a reliable and competent engineering contractor and earned the confidence of Shell Global Solutions International B.V., which has been involved in the Oman LNG project as technical advisor from the outset.

The new LNG train is aiming for an improved production capacity and is expected to be onstream by the end of 2005 to enable the new joint venture to begin LNG supply to Union Fenosa in early 2006.

Ian Bill, chairman and chief executive of Foster Wheeler Energy Limited, said: "We are delighted to continue our work at Qalhat in partnership with Chiyoda. We have proved to be an effective partnership, completing the first two trains on a fast-track schedule and under budget, and we intend to maintain these high standards with the construction of the new train."

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