Bechtel/Sinopec Engineering, Inc./ Foster Wheeler Consortium Awarded China Petrochemical Contract.

Business Editors

CLINTON, N.J.--(BUSINESS WIRE)--March 15, 2001

A consortium of Bechtel Petroleum Chemical of the United States, Sinopec Engineering Inc. (SEI) of China, and Foster Wheeler Energy Limited (BSF), the UK subsidiary of Foster Wheeler Corporation (NYSE:FWC), said today that it has been awarded a project management contract to support a major petrochemical complex in southern China.

The contract was awarded by CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture of Shell Nanhai BV with 50 percent shareholding and CNOOC Petrochemicals Investment Limited (CPIL), also with 50 percent. CPIL is owned by CNOOC (90%) and the Guangdong Investment & Development Company (10%).

The project, which will be located in Huizhou in southern China's Guangdong province, will involve the construction of an 800,000 tonnes per year ethylene cracker, together with downstream plants, utilities and infrastructure. The petrochemical complex will produce propylene oxide, ethylene glycol, styrene monomer, polypropylene, high-density polyethylene and low-density polyethylene. These plants will have outputs of between 200,000 and 560,000 tonnes per year. Major construction work is expected to start in early 2003 and the complex is scheduled to start operations at the end of 2005.

Through an integrated team approach, the BSF consortium will assist CSPC with basic design of the project coordinated from the UK with project management and technical services based in Beijing.

Bill Dudley, president of Bechtel's Petroleum and Chemical unit, said, "The opportunity to work on CSPC is truly an extraordinary privilege. We are delighted to be working with the CNOOC and Shell joint venture team, SEI and Foster Wheeler on this project, which will be one of the largest construction sites in the world in the years ahead."

"CSPC is a very challenging project and SEI is looking forward to bringing our 'hands-on' experience to the project," said Yang Guang, president of SEI. "We are very pleased to be a part of the Bechtel and Foster Wheeler team, and to bring our resources to bear on this project."

"Foster Wheeler is proud to be able to bring our international project management and engineering expertise to this very complex world-scale project, and to contribute to the development of Chinese petrochemical, engineering and construction industries," said Ian Bill, chairman and chief executive of Foster Wheeler Energy Limited.

Notes to Editors:

1. About Bechtel

Bechtel is a global engineering-construction organization that provides premier technical, management, and directly related services to develop, manage, engineer, build, and operate installations for customers world-wide. Founded in 1898 and with its headquarters in San Francisco, USA, Bechtel has been active in the People's Republic of China since 1979. During this time, Bechtel has completed more than 80 projects in China and has permanent offices in Beijing and Shanghai. Bechtel China received a construction licence in China in December 1994, making it the first American/Western company to obtain such a licence. Bechtel's Petroleum and Chemical arm is based in Houston, Texas, USA.

2. About Sinopec Engineering, Inc. (SEI)

Having completed over 450 refinery and petrochemical process units in the last 30 years, SEI is the premier Chinese professional engineering and construction corporation for refinery and petrochemical complexes. SEI, directly under China Petrochemical Corporation, has considerable experience in project management, engineering, procurement, installation and commissioning for various refinery and petrochemical plants in China. As a member of the BSF consortium, SEI brings 'hands-on' experience related to the execution of petrochemical plants.

3. About Foster Wheeler

Foster Wheeler Corporation is a global company offering a broad range of design, engineering, construction, manufacturing, project development and management, research, plant operations and environmental services. The Corporation's headquarters are at Clinton, New Jersey. Foster Wheeler Energy Limited is a part of the Engineering and Construction Group of Foster Wheeler Corporation. For more information about Foster Wheeler, visit our World-Wide Web site at www.fwc.com.