A subsidiary of Foster wheeler AG’s (FWLT - Analyst Report) Global Engineering and Construction Group received an EPCm contract from Sasol Petroleum International (SPI) to provide low pressure equipment for the latter’s low pressure compression project. This project is located at its central processing facility based in Temane, Mozambique. Foster booked the deal in the second quarter of 2013, but other financial terms were not revealed.
SPI is part of Sasol Ltd. (SSL - Snapshot Report), which develops and manages the group’s upstream interests in oil and gas exploration.
The scope of the contract requires Foster to procure and provide core equipments for the project including the low-pressure, gas turbine-driven compressors and auxiliary equipment. The equipments include inlet gas scrubbing and discharge air coolers. In addition, Foster will also be constructing a new substation with high voltage switch gears and transformers. It will also update the existing substation with the new facilities for expanding the distributed control system and providing additional instrument air and nitrogen facilities.
Sasol is a world leader in the unique coal-to-liquids (CTL) technology, owning and operating the largest integrated commercial facility of its kind. The company has been manufacturing synfuels and chemical feedstock from coal for over 50 years. Sasol’s primary objective for this project is to facilitate its Temane CPF to maintain the design and pressure while gas fields decline.
Prior to this, Foster had worked with Sasol in the year 2000 for providing the design and engineering services for the upstream development of field in Temane. In 2004, Foster successfully delivered the Engineering, procurement and management services for the same project.
Foster Wheeler’s Global E&C Group designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities, terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities.
Foster currently has a Zacks Rank #2 (Buy). Other stocks in the industry worth buying at the moment are Micheal Baker Corporation , which holds a Zacks Rank #1 (Strong Buy), and VSE Corp. (VSEC - Snapshot Report), having a Zacks Rank #2 (Buy).