Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has been awarded a feasibility study and front-end engineering design (FEED) contract by the Iraqi Ministry of Oil for a new grassroots refinery at Nassiriya in southern Iraq. The proposed refinery will have a capacity of 300,000 barrels per day.

The Foster Wheeler contract value for this project was not disclosed and will be included in the company's second-quarter 2010 bookings.

In executing this contract, Foster Wheeler will develop the configuration of the new refinery to meet the client's processing objectives, evaluate proprietary technologies, prepare a report covering the feasibility of the project and the design basis of the refinery facilities, engage the selected licensors and prepare the front-end engineering design package for the total project.

"This award reflects our position as a leading refining contractor. We believe that the very balanced and objective approach we apply to refinery investment planning and technology evaluation, our long and successful track record in refining project execution, and the in-depth technical expertise and experience of our refining consultants have again delivered a winning combination," said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.