Foster Wheeler Wins Contracts for Upgrade of Mombasa Refinery and Products Import Terminal in Kenya

abarrelfullabarrelfull wrote on 08 Dec 2012 20:52

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December 1, 2005

Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its UK subsidiary Foster Wheeler Energy Limited has been awarded a contract by Kenya Petroleum Refineries Limited (KPRL) to prepare the basis of design (BOD) for the proposed upgrade of the Mombasa Refinery in Kenya. The shareholders of KPRL are the Government of Kenya (50%), Shell (17.1%), BP (17.1%) and Chevron (15.8%). The contract value was not disclosed and the project was included in the company's third-quarter 2005 bookings.

Foster Wheeler has been working with KPRL since 2004 under a technical services agreement and has completed a comprehensive refinery upgrade configuration analysis, which included an in-depth review of the technical and economic viability of the project. KPRL has now appointed a financial adviser for the financing of this proposed upgrade.

Under the terms of the new contract for the BOD, Foster Wheeler will produce a technical definition and duty specifications for the licensed units, a project execution plan and a cost estimate for the upgrade. This will allow for the rapid progression of the BOD phase into front-end engineering design (FEED), to be followed subsequently by the engineering, procurement and construction (EPC) and commissioning phases.

“I am delighted that we have been awarded a further contract to work with KPRL on this proposed upgrade,” said Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited. “With our in-depth refining expertise, we have been able to add value to our client's investment planning activities, providing an objective and comprehensive analysis of the various options available. I believe this analysis provides KPRL with a sound foundation upon which to progress this proposed upgrade. We will now apply our extensive EPC experience to the development of a high quality basis of design, project execution strategy and cost estimate.”

Separately, KPRL engaged Foster Wheeler to conduct a FEED for a liquefied petroleum gas (LPG) terminal option, centralizing LPG import, storage and distribution, and a feasibility study for the import of refined petroleum products. This work package, planned for completion by the end of 2005, is being executed by Foster Wheeler's South African operation.

“KPRL is encouraged by the conclusion of the refinery upgrade configuration analysis performed by Foster Wheeler,” said Chris House, general manager of KPRL. “The upgrade project will safeguard the future of the refinery and enable the production of high quality products to meet the specifications required under the Dakar Declaration. With Foster Wheeler's assistance, we have reviewed various alternatives and are able to develop strategic plans to effectively meet Kenya's future demands for petroleum products, including LPG for domestic consumption beyond 2015 and for export.”

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