Foster Wheeler Awarded $90 Million EPC Contract for Major Clean Fuels Project in New Zealand

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Oct. 2, 2003

Foster Wheeler (NYSE: FWC) has announced it has been awarded a $90 million contract by the New Zealand Refining Company Ltd. (NZRC) for the Future Fuels clean fuels project. The contract, which is the second stage of the project, covers the full engineering, procurement and construction (EPC) part of the project up to ready-for-start-up with assistance for the commissioning of the plant.

Located at Whangarei, North Island, New Zealand, the contract involves the modification of New Zealand's sole refinery to produce low-sulfur diesel fuel and low-benzene, -sulfur and -aromatics gasoline. Foster Wheeler plans to carry out engineering and procurement from its office in Sriracha, Thailand, one of four Foster Wheeler execution centers in the Asia Pacific region. The project management team will reside in New Zealand.

During the first stage of the contract, which has now been completed, Foster Wheeler supported NZRC in producing an EPC sanction package from a number of separate basic design engineering packages (BDEPs) and assisted in the development of the total installed cost estimate.

Details of this project include new processing units for hydrodesulfurization, benzene removal and hydrogen separation, as well as integration into the existing facilities. Foster Wheeler is working on the refinery to ensure compliance with forthcoming changes to New Zealand's national transport fuel specifications. These require reduced sulfur in automotive diesel fuel (50 ppm or less) and reduced benzene (one percent by volume), sulfur and aromatics content in motor gasoline by January 1, 2006.

Steve Davies, managing director, sales, marketing & strategic planning, Foster Wheeler, said, "This second award of work by the New Zealand Refining Company further reinforces their trust and faith in our ability to deliver a world-class project within budget and on deadline. This is a flagship project in New Zealand and represents the largest investment in this refinery for 20 years."

Work began on the site in September 2003 and start-up of the new facilities is scheduled for August 2005.

This project was included in second-quarter 2003 new orders and backlog.

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