Foster Wheeler Wins Mexican Contract

Foster Wheeler AG’s (FWLT - Analyst Report) Foster Wheeler Upstream business, part of its Global Engineering and Construction Group, received a contract from the Discovery Gas Transmission, LLC for its Discovery System at South Timbalier 283, in the Gulf of Mexico. The contract involves provision for design, engineering and technical services for a junction platform, facilities and associated pipelines within the Discovery System.

The contract value has not been disclosed. Foster Wheeler’s fourth-quarter 2011 bookings include the value of the contract.

The four-pile structure platform with a two level deck will be built in approximately 350 feet of water. The facility will have an unmanned structure with a control system through which it can be shut down in an adverse condition.

The platform, located in approximately 350 feet of water, will be a four-pile structure with a two-level deck. It will be designed as an unmanned structure with a control system designed to shut down the facility in the event of an upset condition. With the new infrastructure, the existing Discovery pipeline will be able to work at higher pressure, both before and after the connection of the new Keathley Canyon pipeline.

Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States.  The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. The major competitors of Foster Wheeler are Fluor Corporation (FLR - Analyst Report) and Jacobs Engineering Group Inc. (JEC - Analyst Report).

Currently, we are maintaining a Zacks #5 Rank (short-term Strong-Sell recommendation) on Foster Wheeler.

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