Foster Wheeler AG announced that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by PEMEX REFINACIÓN for an ultra-low sulfur diesel (ULSD) project at the Salina Cruz refinery, Oaxaca, Mexico. Foster Wheeler’s scope of work, which also includes start-up and testing, is scheduled to be completed in 2018.

The Foster Wheeler contract value was not disclosed. The initial release of work, relating to detailed design and the procurement of long-lead items, will be included in the company’s third-quarter 2014 bookings. The balance of the agreed workscope is expected to be released in 2015.

The investment in the Salina Cruz refinery, in excess of US$500 million, is part of a significant clean fuels program being implemented by PEMEX as a result of the country’s recent Energy Reform. The objective of the program is to significantly reduce the sulfur content of diesel produced from 500 to 15 parts per million.

The ULSD project at the Salina Cruz refinery, which Foster Wheeler is executing in joint venture with Arendal of Mexico, is a complex upgrade which includes the major revamp of four diesel hydrodesulphurization units, the installation of new units for hydrogen production, sulphur recovery and sour water stripping, and significant upgrades to the utilities and offsites facilities.

“We have a proven global track record in safely and successfully delivering complex refinery revamps and clean fuels projects in Mexico. We look forward to strengthening our already excellent working relationship with PEMEX by bringing together this expertise to deliver outstanding results for this strategically important investment. We are delighted to be playing a key role in helping PEMEX to achieve its vision for a new future, for which the Energy Reform has been the catalyst,” said Roberto Penno, Chief Executive Officer, Global Engineering and Construction Group, Foster Wheeler.

About Foster Wheeler

Foster Wheeler AG (NASDAQ:FWLT) is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, minerals and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Reading, United Kingdom.

About Pemex

Pemex, Mexico's state oil company, is engaged in the exploration, production, transportation, refining, storage and sale of hydrocarbons and derivatives. Its products include petrochemicals, natural gas, liquid gas, sulphur, gasoline, kerosene and diesel. Pemex operates 344 production fields, 6,382 production wells, 225 off-shore platforms, 6 refineries, 8 petrochemical complexes, 7,896 km of gas pipeline, 4,548 km of oil pipeline, and 19 LPG distribution terminals.

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