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Foster Wheeler is Awarded Alliance Core Contract by Shell UK Limited for Wide Variety of Projects.

CLINTON, N.J.--(BUSINESS WIRE)--Nov. 18, 1997--Foster Wheeler Corp. announced that Shell UK Limited has awarded its Alliance core contract to Foster Wheeler Energy Limited (FWEL) for a variety of projects over the next three years. The scope of the contract includes feasibility studies, front-end design, detail design, engineering, procurement and construction management.

Adrian Fenton, FWEL site manager, said the contract award, won in competition against 14 other engineering firms, builds on Foster Wheeler's successful Alliance and Partnering track record with refineries and other major facilities in the UK and overseas. It represents a landmark in the relationship between FWEL and Shell, he added.

The structure of the contract allows work to be executed in an Alliance or partnership with Shell and with suppliers and subcontractors. Fenton said that a high-level focus is provided by incentives so that both parties aim to reduce the total installed cost of projects while improving on safety, schedule and quality of performance.

Foster Wheeler Energy Limited, based in Reading, United Kingdom, is a subsidiary of Foster Wheeler International Corp.

Fenton heads an FWEL Alliance team of approximately 50 people based in the administration building at Shell's Stanlow manufacturing complex near Chester. This arrangement, he said, fosters integration with Shell's staff and ensures that the alliance nature of the contract is maintained. The Alliance also has a call-off arrangement with other Shell UK manufacturing facilities, including the large Shellhaven site on the Thames Estuary.

"FWEL was selected from an initial prequalification list of 15 companies and from five final bids," said Fenton. "We have the ability to workshare electronically between our four U.K. centers to cope with fluctuations in the workload. The support of FWEL's U.K. resources provides the Alliance with access to a considerable amount of specialist expertise and proven project-execution experience."

According to Shell's Alliance contract holder, "Shell is determined that this Alliance will provide pace-setting performance across many aspects of our business-support activities. Performance indicators will be used as measures of the Alliance's achievements and stretched targets will be set. FWEL will earn incentive payments when targets are reached."

Foster Wheeler Energy Limited is an international project management, engineering and construction company offering a complete range of services worldwide to the energy and industrial sectors, principally serving the refining, petrochemical, chemical, oil and gas and pharmaceutical/fine chemicals industries. The company, with over 75 years of experience and employing over 2,900 people, is headquartered in Reading with substantial full-capability offices in Glasgow, Teesside, Johannesburg and Sriracha (Thailand). FWEL is a unit of Foster Wheeler Corp., Clinton, New Jersey, U.S.A.

Foster Wheeler International Corp., a wholly-owned subsidiary of Foster Wheeler Corp., directs the organization's overseas activities of companies that are part of the Engineering and Construction Group.

Foster Wheeler Corp. 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, N.J. For more information about Foster Wheeler, visit its World Wide Web site at www.fwc.com.

CONTACT: Foster Wheeler Corporation, Clinton

Harry Levy, 908/730-4448

Richard C. Kroll, 908/730-4444
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Date:Nov 18, 1997
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