Foster Wheeler Signs Three-Year Statoil Frame Agreement for FEEDs

  Foster Wheeler Signs Three-Year Statoil Frame Agreement for FEEDs

Business Wire

ZUG, Switzerland -- December 12, 2012

Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its
Global Engineering and Construction Group has signed a three-year frame
agreement with Statoil Petroleum AS for the provision of front-end engineering
design (FEED) services for future projects at the Kårstø and Kollsnes
processing plants, located in Norway north of Stavanger and north-west of
Bergen, respectively. The frame agreement includes an option for Statoil to
extend the agreement for a further two years and for Foster Wheeler to execute
concept studies as well as FEEDs.

The value of the agreement was not disclosed. Bookings will be recorded as
work is released by Statoil.

The Kårstø processing plant plays a key role in the transport and treatment of
gas and condensate from twenty-eight fields on the Norwegian continental
shelf, which fields are connected to the plant via pipelines. The Kårstø
complex ranks as the world’s third largest export port for liquefied petroleum
gases (LPG) and is the biggest in Europe. The processing plant at Kollsnes
treats gas from the Troll, Kvitebjørn and Visund fields in the North Sea, and
can handle up to 143 million standard cubic meters per day.

Statoil is acting on behalf of Gassco. Gassco is the operator for the Kårstø
and Kollsnes processing plants, which are owned by the Gassled joint venture,
with Statoil as the technical service provider.

“We have developed an excellent working relationship with Statoil and have
been working with them at these facilities under an existing agreement for
some time, as well as working with them on other projects, including Snøhvit
LNG, ” said Umberto della Sala, Chief Operating Officer of Foster Wheeler AG.
“We will continue to focus on providing responsive and flexible service,
combining our in-depth technical skills and our significant upstream
experience and capability to support Statoil in successfully delivering its
planned portfolio of projects at Kollsnes and Kårstø.”

Foster Wheeler AG is a global engineering and construction company and power
equipment supplier delivering technically advanced, reliable facilities and
equipment. The company employs approximately 12,000 talented professionals
with specialized expertise dedicated to serving its clients through one of its
two primary business groups. The company’s Global Engineering and Construction
Group designs and constructs leading-edge processing facilities for the
upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and
petrochemicals, power, mining and metals, environmental, pharmaceuticals,
biotechnology and healthcare industries. The company’s Global Power Group is a
world leader in combustion and steam generation technology that designs,
manufactures and erects steam generating and auxiliary equipment for power
stations and industrial facilities and also provides a wide range of
aftermarket services. The company is based in Zug, Switzerland, and its
operational headquarters office is in Geneva, Switzerland. For more
information about Foster Wheeler, please visit our Web site at www.fwc.com.

Safe Harbor Statement

Foster Wheeler AG news releases may contain 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 about revenues
(including as expressed by its backlog), its 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 in the
Company’s most recent Annual Report on Form 10-K, which was filed with the
U.S. Securities and Exchange Commission and the following, could cause the
Company’s business conditions and results to differ materially from what is
contained in forward-looking statements: benefits, effects or results of the
Company’s redomestication to Switzerland; the benefits, effects or results of
our strategic renewal initiative; further deterioration in global economic
condition; changes in investment by the oil and gas, oil refining,
chemical/petrochemical and power generation industries; changes in the
financial condition of our customers; changes in regulatory environments;
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; compliance with laws and regulations
relating to our global operations; currency fluctuations; war, terrorist
attacks and/or natural disasters affecting facilities either owned by the
Company or where equipment or services are or may be provided by the Company;
interruptions to shipping lanes or other methods of transit; 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 its patents and other intellectual property rights; increasing
global competition; compliance with debt covenants; recoverability of claims
against customers and others by the Company and claims by third parties
against the Company; and changes in estimates used in our 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 or
furnished with the Securities and Exchange Commission.

Contact:

Foster Wheeler AG
Media:
United States
Julie Stanisz, 908-730-4047
julie_stanisz@fwc.com
or
United Kingdom
Anne Chong, +44 (0) 118 913 2106
anne_chong@fwuk.fwc.com
or
Investor Relations:
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries:
908-730-4000
fw@fwc.com