Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by Preem AB (Publ) Preemraff Lysekil (Preem) to perform the basic engineering design (BED) and front-end engineering design (FEED) for Preem's Energy Savings Program 2013 Turnaround at the Preemraff Lysekil oil refinery, located north of Gothenburg on the west coast of Sweden.

The Foster Wheeler contract value for this project was not disclosed. The contract value for the BED was included in the company's first-quarter 2011 bookings. The FEED will be booked upon release of this work by the client. This release is expected to be given during the second-quarter of 2011.

Last year Preem awarded an energy improvement study (EIS) to Foster Wheeler's Business Solutions Group, working with AspenTech, with the aim of improving energy efficiency and reducing emissions in this complex refinery. The study covered both design and operational improvement options. Five design options from this study were selected by Preem for further development and economic analysis.

During the basic engineering design phase, Foster Wheeler's UK Operations will further develop these five options. This will involve determining the feasibility and extent of modifications required and estimating their associated costs. Preem then plans to select one or more options, for which Foster Wheeler will then perform the FEED to allow Preem to make a financial investment decision in October 2011. The basic engineering design is scheduled for completion in June 2011 and the FEED in September 2011.

"The team of Foster Wheeler and AspenTech developed design options for the refinery which were sophisticated, innovative and offer the potential for good energy savings returns," said Umberto della Sala, Interim Chief Executive Officer of Foster Wheeler AG. "Preem has chosen to go forward with five of these opportunities. We look forward to demonstrating continued added value to Preem as we develop these opportunities further."

To see the refinery site