Foster Wheeler-Led JV Awarded Feed Contract for Nafusah Onshore Oilfield Development in Libya

  Foster Wheeler-Led JV Awarded Feed Contract for Nafusah Onshore Oilfield
  Development in Libya

Business Wire

ZUG, Switzerland -- July 17, 2014

Foster Wheeler AG (Nasdaq:FWLT) announced today that a subsidiary of its
Global Engineering and Construction Group, in joint venture with Taknia Libya
Engineering Company (Taknia), has been awarded a front-end engineering design
(FEED) contract by Nafusah Oil Operations B.V. Libyan Branch for an onshore
oilfield development, known as the Area 47 Development Project in Libya. Area
47 (North Hamada Field) is located in the Hamada region, approximately 200 km
south of Tripoli, in the Ghadames Basin.

The Foster Wheeler contract value was not disclosed and will be included in
the company’s second-quarter 2014 bookings.

The planned development will consist of approximately 34 producing wells,
including eleven existing wells and approximately 23 new wells, flow-lines and
a common gathering trunk-line to transport the well fluids to the central gas
oil separation facility for primary treatment. After separation, the oil and
gas produced will be exported through new pipelines that will be connected
into existing pipelines carrying products to the Mellitah delivery terminal,
in the northwest of Libya, on the Mediterranean Sea, for export. The planned
design capacity of the gas oil separation facility is 50,000 barrels per day
(BPD) of oil, 90 million standard cubic feet per day of gas and associated
water (to be re-injected into the reservoirs).

“Foster Wheeler has been involved in the Area 47 Development Project for some
time, having completed the conceptual study in 2012 and worked on the FEED
definition in 2013,” said Roberto Penno, Chief Executive Officer, Foster
Wheeler Global Engineering and Construction Group. “Area 47 is located in a
relatively remote part of Libya, so the facilities are being designed on a
modular basis in order to minimize on-site construction and installation
activities, and to accommodate future expansion.”

“Taknia Libya Engineering Company looks forward to the joint execution of this
FEED project with Foster Wheeler,” said Tayeb Said, Managing Director, Taknia
Libya Engineering Company. “We hope this partnership will open the door for
more co-operation between the two parties to execute more projects in the
Libyan market and more significantly help enhance the technology transfer
program that Taknia is implementing.”

“To achieve first oil production by the end of 2016, Nafusah is looking
forward to have this FEED project completed on schedule or even before in
order to start the second phase of the project as early as possible in 2015,”
said Mohamed Jamaleddin, Chairman of the Operating Management Committee,
Nafusah Oil Operations B.V. Libyan Branch. “We trust that the in-depth
technical expertise of the Foster Wheeler and Taknia joint venture will ensure
the successful and safe delivery of a high quality project for Nafusah.”

Nafusah Oil Operations was formed as a joint operating company by PT Medco
Energi Internasional, through its subsidiary Medco International Ventures
Limited (MedcoEnergi), of Indonesia, with its partners, the National Oil
Corporation of Libya and the Libyan Investment Authority. Nafusah Oil
Operating Company will act as the operator for the development and production
phases of Area 47.

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 13,000 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, minerals 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 Reading, United Kingdom. For more
information about Foster Wheeler, please visit our website at

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Foster Wheeler AG
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