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Foster Wheeler Awarded Front-End Engineering Design for Chevron's Olokola Gas Supply Project in Nigeria.

HAMILTON, Bermuda -- Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that two subsidiaries in its Global Engineering and Construction Group, Foster Wheeler Energy Limited and Foster Wheeler (Nigeria) Limited, in a joint venture with National Engineering & Technical Company Limited (NETCO), have been awarded the front-end engineering design (FEED) by Chevron Nigeria Limited (CNL) for the non-associated gas wellhead platforms and pipelines portion of CNL's Olokola Gas Supply Project (OKGS). CNL is a joint venture partner of the Nigerian National Petroleum Corporation (NNPC). NETCO is a wholly owned subsidiary of NNPC.

The contract, to be executed in Nigeria, is the first work authorization received from CNL under the existing Foster Wheeler/NETCO three-year term services contract with CNL, which was announced at the end of last year. The value of the contract, which will be included in the company's second-quarter 2006 bookings, was not disclosed.

"Foster Wheeler is delighted to strengthen its commitment in Nigeria through this award," said Anita Omoile, director of Foster Wheeler (Nigeria) Limited. "The upstream oil and gas sector is a strategically important market for Foster Wheeler and is one in which we have a long and successful track record. We are committed to working very closely with CNL and with NETCO to deliver a high quality FEED which fully meets the project's objectives."

The OKGS project is located offshore Nigeria and will provide 2,300 million standard cubic feet per day of natural gas and associated liquids to the proposed Olokola LNG liquefaction plant. The new facilities are located approximately 10 to 40 kilometers offshore and will include one 15,000 ton topsides production platform, one 14,000 ton topsides production platform, two living quarters platforms, each to accommodate approximately 60 people, nine wellhead platforms, flares, bridges and approximately 400 miles of sub-sea pipelines for gathering and delivering the gas to shore.

The Foster Wheeler/NETCO team will execute the FEED, scheduled to be completed by the end of 2006, for the nine wellhead platforms and the pipelines.

"This is an important project for us, especially from the standpoint of developing local capacity and competence through the promotion of alliances between local engineering companies and their foreign counterparts. We are confident that Foster Wheeler and NETCO will deliver on time and within budget," commented Fred Nelson, chairman and managing director of Chevron Nigeria Limited.

Notes to Editors:

1. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, visit our Web site at www.fwc.com.

2. Safe Harbor Statement

This news release contains forward-looking statements that are based on management's assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company's expectations regarding revenues (including as expressed by its backlog), liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims, and the costs of current and future asbestos claims, and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described under the heading "Business--Risk Factors of the Business" in the Company's most recent annual report on Form 10-K and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: changes in the rate of economic growth in the United States and other major international economies, changes in investment by the power, oil and gas, pharmaceutical, chemical/petrochemical and environmental industries, changes in the financial condition of customers, changes in regulatory environment, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, currency fluctuations, war and/or terrorist attacks on facilities either owned or where equipment or services are or may be provided, outcomes of pending and future litigation, including litigation regarding the company's liability for damages and insurance coverage for asbestos exposure, protection and validity of patents and other intellectual property rights, increasing competition by foreign and domestic companies, compliance with debt covenants, recoverability of claims against customers and others, changes in estimates used in critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.
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Comment:Foster Wheeler Awarded Front-End Engineering Design for Chevron's Olokola Gas Supply Project in Nigeria.
Publication:Business Wire
Geographic Code:4EUUK
Date:Aug 3, 2006
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