PRESS RELEASE – Foster Wheeler and Kentz Joint Venture Company Awarded Contracts by Shell for Majnoon Oil Field Development in Iraq
PRESS RELEASE 18 MARCH 2014 – Foster Wheeler and Kentz Joint Venture Company Awarded Contracts by Shell for Majnoon Oil Field Development in Iraq
DUBAI, UAE, March 18, 2014 — Foster Wheeler Kentz Energy Services DMCC, the Dubai-based joint venture company of Foster Wheeler and Kentz, announced today that it has been awarded framework contracts by Shell Iraq Petroleum Development B.V. (“Shell”), for the provision of engineering, procurement and related services for the Majnoon Oil Field Commercial Production Project in Iraq. Shell is the operator of the Development Production Services Contract for the Majnoon field, which is located in southern Iraq, approximately 70 km north of Basra City.
The services, including concept selection, front-end engineering design, detailed design and contract and procurement services, will be provided primarily by Foster Wheeler Kentz Energy Services DMCC, supported by the Foster Wheeler and Kentz organizations.
The contracts with Shell will run for two years, with an option to extend for an additional year, and will provide a framework for a number of packages of work to be executed, covering new facilities and rehabilitation or upgrade of existing facilities. “We established this joint venture in Dubai to bring together the technical expertise, Iraq experience and project execution capability and resources of Foster Wheeler and Kentz to support the international oil companies in realizing their strategically important Iraqi investment plans,” said Steve Spicer, General Manager of Foster Wheeler Kentz Energy Services DMCC. “This award is a strong vote of confidence in the added value that this combination can deliver.” “There are some unique challenges in Majnoon,” said Tom Hooft van Huysduynen, Project Director Majnoon Field Development, Shell Iraq Petroleum Development B.V. “Seamless cooperation with Foster Wheeler Kentz Energy Services DMCC is not only essential in moving forward in safety but also in the delivery of the Majnoon Portfolio.”
About the Majnoon Project
In 2009, following Iraq’s second licensing round for oil production, the government signed a 20-year service contract with international oil companies Shell and Petronas to develop the Majnoon oilfield. The Majnoon field measures around 60 kilometres long and 15 kilometres wide and is estimated by the Iraqi government to hold around 38 billion barrels of oil in place. Shell is the lead operator in the consortium with a 45% stake, Petronas holds 30% and the Iraqi South Oil Company the remaining 25%.
About Foster Wheeler Kentz Energy Services DMCC
Foster Wheeler Kentz Energy Services DMCC is a limited liability company registered in the Dubai Multi-Commodities Centre freezone in Dubai, owned 50:50 by Foster Wheeler and Kentz. It has offices in the Jumeirah Lakes Towers area of Dubai.
About Foster Wheeler
Foster Wheeler AG (Nasdaq: FWLT) 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 the company’s website at www.fwc.com.
Kentz (LSE: KENZ) is a global engineering specialist solutions provider, which serves a blue chip client base primarily in the oil and gas, petrochemical and mining and metals sectors. It is listed
on the London Stock Exchange (symbol: KENZ). Kentz has over 14,500 employees in 36 countries. Its three main business lines are; Engineering and Projects, Construction, and Technical Support Services. It has a proven track record of delivering mechanical, electrical, controls and instrumentation engineering, construction and management services in some of the most remote locations on earth. For further information see the Kentz website www.kentz.com.
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