Emerson Process Management announced February 5 it has entered into a 5-year Global Framework Agreement (GFA) with Shell to serve as a Main Automation Contractor (MAC) on future capital projects globally.

Under the Agreement, Emerson will provide project and support services for Main Automation Systems, including Distributed Control Systems (DCS) and Safety Instrumented Systems. The contract also provides for ongoing maintenance of existing systems, plus the supply of new systems for brownfield and greenfield facilities.

While Shell has utilized a MAC strategy in its downstream businesses for years, the Company is expanding the concept to make it a center-point of an enterprise-wide automation strategy. "This Global Framework Agreement marks a completely new approach within Shell," said Nick Curley, upstream automation portfolio manager for Shell. "It is a long-term, competitive, collaborative, performance-based relationship that will facilitate the delivery of considerable value to both parties. We will be looking to emulate this approach in many other key global categories in the future."

"This new agreement will put Emerson in a position to substantially broaden its Main Automation Contractor footprint within Shell," said Ronaldo Marques, general manager, equipment, for Shell's Enterprise Categories & Suppliers division. "For the first time in history, Emerson will have full and open access to all Shell business units - Upstream, Downstream, Wind, Power and Biofuels - plus affiliated joint ventures."

"We have enjoyed a solid relationship with Shell for decades," said Steven A. Sonnenberg, president of Emerson Process Management. "This global framework agreement symbolizes the shared belief our two companies have that early engagement, clear objectives and collaborative work practices result in more predictable success for projects and operations. We are thrilled to be selected by Shell for the role of Main Automation Contractor."

AMERICAS

U.S.

U.S. Refinery Status: Planned and Unplanned

The following table lists unplanned and planned production outages at U.S. refineries as reported by Dow Jones Newswires. The information is compiled from both official and unofficial refining sources and doesn't purport to be a comprehensive list.

BP PLC has restarted FCCU No. 1 at its Texas City, Texas, refinery; the unit had been shut down for compressor repairs.

Motiva Enterprises said that its Port Arthur, Texas, refinery would soon resume normal crude oil throughput rates. The closure of the key shipping lane, the Sabine-Neches waterway, was for the company to reduce runs.

Motiva began planned turnaround maintenance at several unspecified process units at its Convent, Louisiana refinery. The units will be returned to service early in March, the company said.

Flaring events reported to California state regulators on Jan. 28 and 26 at BP's Carson, California refinery are seen as the coming end of planned turnaround crude and coker unit maintenance. The work began on January 6.

Valero Energy Corp. (VLO) restarted a crude unit at its Texas City, Texas, refinery following more than one month of unplanned repairs. A fire on December 24 caused the shutdown of the crude unit and a coker unit; the coker was restarted within a week of the event.

Motiva

The delayed coker unit at Royal Dutch Shell's (RDSB, RDSA) Martinez, Calif., oil refinery caused emissions of steam and coke dust, prompting a filing to California state environmental regulators.

Hess Corp. (HES) said that month-long maintenance is planned in April at its Port Reading, New Jersey, 70,000-barrel-a-day FCCU.

Motiva Enterprises LLC (RDSA, RDSB.LN), a 50-50 joint venture with Saudi Aramco, said that damage assessment is underway at the crude unit shut Jan. 22 after a leak at the unit caused a fire. There is no estimate on when the unit will be restarted.

ExxonMobil's (XOM) Torrance, Calif., refinery continued to operate while a problem at a hydrotreater unit resulted in an unplanned flaring event that lasted just over seven hours, a filing to state regulators said. A person familiar with operations at the plant said that the unit hydrotreater was operating.

For more detailed information, search Dow Jones Newswires using the code N/REF.

Operator Refinery Capacity Description Restart

(in 000s

bbl/day)

UNPLANNED

CANADA

Korean Newfoundland 115.0 Hydrocracker was shut Jan. 7

National after a brief fire broke out in

Co. the stripper tower. No word on

when it will restart, the co.

said on Jan. 12.

EAST COAST

CARIBBEAN

GULF COAST

BP Texas City 455.0 Restarts ultracracker after Jan. 20

TX 1-day shut down

Exxon Baytown 572.5 Brief power outage Jan. 20

Valero Corpus 315.0 Coker restarted at East Plant

Christi, TX Jan. 18

Citgo Corpus 163.0 Platformer reactor was shut after

Christi,TX a brief fire Dec. 30. No injuries.

Co. still assessing damages.

Motiva Norco, LA 236.4 Damage assessment underway at n/a

the crude unit shut Jan. 22 by

a fire caused by a leak at the

unit, the Co. said on Jan. 26.

Restart estimate not available.

Motiva Port Arthur

TX 285.0 Crude oil throughput will soon Jan 28

return to normal rates the co.

said on Jan 28; runs were re-

duced due shipping delays caused

by the closure of the Sabine-

Neches Waterway, the co. said on

Jan. 26.

FCCU went offline Jan. 8 due n/a

to a boiler failure; unit in

circulation.

Shell Deer Park 340.0 Hydrodesulfurization 2 Unit re- Jan 25

TX started Jan. 25 following cata-

lyst change and maintenance that

began on Jan. 13.

Valero Texas City 245.0 1 of 3 crude units was re- Jan 28

TX started Jan 28; a fire on Dec

24 shut the crude unit and a

coker unit. The coker unit was

restarted on Dec. 31.

MIDWEST

ROCKY MOUNTAINS

Holly Artesia, 100.0 A fire erupted Jan. 18 at crude early

NM unit; restart seen in 3 weeks. Feb.

WEST COAST

Exxon Torrance 149.5 A brief snag at a hydrocracker n/a

CA unit on Jan. 25 cause about

7 hours of flaring. The unit is

operating, a person familiar

with the plant said.

Shell Martinez 155.6 Delayed coker unit caused steam n/a

CA and coke dust emissions Jan. 27;

cause is unknown. No impact on

production.

PLANNED

CANADA

Shell Montreal 130.0 The refinery will be converted

Quebec into a fuel terminal, Co. said

Jan. 7. No timeline provided.

CARIBBEAN

Hovensa St. Croix 500.0 150,000 bbl/d FCCU shut early

Jan. 20 for turnaround. March

Valero Aruba 235.0 The plant, which

was shut in June for 2-3

months for economic reasons was

closed indefinitely in Nov.

EAST COAST

Hess Port Month-long turnaround work

Reading NJ will take place in April at

the plant's 70,000-b/d

FCCU; the refinery does not

process crude oil.

Sunoco Westville 145.0 Idling all Eagle Point refin- Mid-Nov

NJ ing operations indefinitely due

to poor economics, Co. said

Oct. 6.

Reformer unit shut in Girard n/a

Point section in early Oct

for economic reasons. Shutdown

to last 1-6 months.

Valero Delaware 210.0 Plant to be permanently shut due

City, DE to poor economics, announced

Nov. 20. Delaware Official said

it would be shut on Nov. 22.

The plant's production units will

be dismantled and disposed of in

coming months, Co. said Dec. 23.

Valero Paulsboro 185.0 Refinery will operate during Dec. 14-21

NJ FCCU work that began on Nov.

Nov. 28-29. The entire refinery

was scheduled to shut during the

work; the Co. also shortened the

duration of the FCCU work to 2-3

weeks from 6 on Dec. 3.

Conoco Linden, NJ 238.0 The Bayway refinery is undergoing

planned maintenance, Co. said Jan.7.

No details regarding unit(s) or

duration provided.

Western Yorktown 64.5 Planned work scheduled 3Q 2010.

GULF COAST

BP Texas City 455.8 FCCU in restart Jan 29; Jan 29

TX shut Jan 27 for compres-

sor repair.

Chevron Pascagoula 330.0 Pre-commercial heavy oil 2010

MS conversion project delayed

from 2008 to 2010 due to

economic factors.

Conoco Sweeny, TX 247.0 Unit 3 shut to connect an Jan. 18

emission control device (wet

gas scrubber), which will not

affect refining operations,

a Jan. 4 filing stated.

Flint Corpus 288.1 $250 mln project for new Spring

Hills Christi, TX diesel desulfurization, 2010

sulfur recovery unit to begin

in Fall 2008. Construction

to last 18 months.

Marathon Garyville 245.0 Project to increase crude oil

LA refining capacity by 180,000-

b/d completed on schedule and

new units were being integrated,

company said Jan. 8. Entire

plant reaches full capacity 2Q'10,

Co. said previously.

Planned turnaround at plant

is expected to start and end

in Jan. 2010, Co. said Jan. 8.

Creditors Hopeful after Israeli Company Submits Bid for Bankrupt Big West

Creditors owed millions of dollars by the Big West oil refinery are cautiously hopeful they will get paid since learning that an Israeli company has submitted a bid to buy the bankrupt company.

"We weren't banking on a sale happening, but then the bid came, so you never know," said Chad Hathaway, owner of Hathaway LLC, a small oil producer based in Bakersfield, Calif.

Prior to Big West of California LLC's December 2008 Chapter 11 bankruptcy filing, Big West had been Hathaway's only customer. ConocoPhillips softened the blow considerably by picking up that business, but Big West still owes Hathaway about $600,000.

In its bankruptcy filing, the refinery at 6451 Rosedale Highway showed 200 to 999 creditors and liabilities of $500 million to $1 billion.

It's not clear who, if anyone will be on the hook for that.

"We filed our claim with the Flying J case," said Michael Abril, an attorney for three creditors. "Their lawyers are now trying to cleanse the docket to make a distinction between Flying J creditors and Big West creditors, so of course we're trying to figure out what the sale of Big West would mean to us."

Bankrupt Flying J Group, the refinery's parent company based in Ogden, Utah, in July announced it had entered into a preliminary merger agreement with Knoxville-based Pilot Travel Centers LLC.

Pilot said it would be inappropriate to comment until the merger is completed.

Flying J also declined to comment, as did Dallas-based Alon Energy USA Inc., a unit of Alon Israel Oil Co. Ltd. The company owns four crude oil refineries in California, Louisiana, Oregon and Texas.

Alon on February 2 announced it had offered to pay $40 million for Big West, plus the fair market value of inventory and the assumption of environmental cleanup obligations. A 250-acre buffer parcel of property was not included.

The largest unsecured creditor at the time of the filing was Zions Bank in Utah, owed $85.8 million. A bank spokesman said its outstanding loan had been sold to an investor group that he declined to identify.

Debts to unsecured creditors aren't backed by land, buildings or other collateral.

Berry Petroleum Co., which moved headquarters from Bakersfield to Denver two years ago, was the third largest creditor, owed $26 million.

Most of the largest firms owed unsecured debts are oil companies.

Hathaway said several weeks ago, hedge fund companies and others who invest in bankruptcy debt were offering creditors 65 cents on the dollar for the balance Big West owed them.

Since February 2, the offers have shot up to 85 cents on the dollar, Hathaway said.

Hathaway is holding out for now, because he wants the entire balance he is due.

Attorney John Kim of the Los Angeles office of law firm Nossaman LLP represents six crude suppliers Big West owes money.

It will take a while to sort out how much money is even available to split up because transaction costs will have to be subtracted from the proceeds of any sale, he said.

"We don't know what those costs are going to be or what the timing is going to be," Kim said. "There are so many moving parts to this."

But the fact that there's a bidder at all presents a glimmer of hope, he added. "I think this is an exciting development for Bakersfield," Kim said.

Obama Administration Finalizes Renewable Fuel Standard Program (RFS2)

The U.S. EPA announced February 3 that it has finalized a rule to implement the long-term renewable fuels standard of 36 billion gallons by 2022 established by Congress.

According to EPA, the Renewable Fuel Standard Program (RFS2) requires biofuels production to grow from last year’s 11.1 billion gallons to 36 billion gallons in 2022. Of this 2022 volume, 21 billion gallons will need to come from advanced biofuels.

The EPA contends that increasing renewable fuels will reduce dependence on oil by more than 328 million barrels a year and reduce greenhouse gas emissions more than 138 million metric tons a year when fully phased in by 2022. For the first time, some renewable fuels must achieve greenhouse gas emission reductions--compared to the gasoline and diesel fuels they displace--in order to be counted toward compliance with volume standards.

The response from various industry sectors that will be affected by RFS2 was mixed.

The National Petrochemical and Refiners Association (NPRA), which comprises virtually all U.S. refiners and petrochemical manufacturers, stated that it has consistently supported the integration of biofuels into the U.S. fuel mix provided the integration process is based on sound science and closely follows the law. The trade group, however, did express disappointment with the government's lateness in issuing the final rule.

"While we welcome the 2010 guidelines for RFS2 implementation today, our member businesses would have been better served in terms of investment and regulatory certainty to have known these rules months ago as prescribed in the Energy Independence and Security Act of 2007," said NPRA President Charles Drevna in a prepared statement. The legislation, known as "EISA," was enacted on Dec. 19, 2007.

“While we are still in the process of reviewing these lengthy and complex regulations, we are concerned that a few key provisions evade sound science and may even be unlawful," Drevna continued. "We are concerned, for example, that politics may have trumped science with regard to the revisions to the greenhouse gas emissions from the production of soy-based biodiesel. We also believe that combining biomass-based diesel volumes from 2009 with 2010 and making portions of the final rule retroactive to January 1, 2010 is unfair and likely unlawful.”

The national trade association of the biodiesel industry offered a more optimistic response. “The U.S. biodiesel industry is pleased that the EPA has issued the final RFS2 rule,” stated Joe Jobe, Chief Executive Officer of the National Biodiesel Board (NBB). “There are significant job creation, energy security and environmental benefits associated with expanded biodiesel use. Today’s rulemaking--in particular implementation of the Biomass-based Diesel program--will allow America to reap these benefits.” According to the NBB, EISA for the first time specifically provides for a renewable component in U.S. diesel fuel. From 2012 through 2022, RFS2 will require at least 1 billion gallons of biomass-based diesel to be used domestically. In addition, the EPA Administrator has to authority to raise the minimum volume requirement.

The U.S. ethanol lobby was generally pleased with the Obama Administration's action on RFS2. "EPA was right to recognize that ethanol from all sources provides significant carbon benefits compared to gasoline," said Bob Dinneen, President of the Renewable Fuels Association (RFA). "As structured, the RFS is a workable program that will achieve the stated policy goals of reduced oil dependence, economic opportunity, and environmental stewardship."

RFA argued, however, that the EPA continues to rely on "oft-challenged and unproven theories such as international indirect land use change." The indirect land use change (ILUC) issue hinges on the idea that demand for ethanol will lead to the cultivation of virgin lands worldwide to grow corn and other grains, releasing into the atmosphere carbon that would otherwise remain trapped in the soil. According to the RFA, ILUC unfairly penalizes U.S. biofuels to the advantage of imported ethanol and petroleum.

To read the final rule, visit the EPA Web site: http://www.epa.gov/otaq/renewablefuels/index.htm

Fluor to Perform Pasadena Refining System Study

Fluor Corp. announced February 2 that Pasadena Refining System, Inc. (PRSI), a subsidiary of Petrobras, has selected Fluor to provide front-end engineering study services for a prospective U.S. refinery project. Fluor booked the undisclosed contract value in the fourth quarter of 2009.

Fluor will provide engineering, estimating and project management services for the conceptual engineering phase of the prospective project that would enhance the performance of the 100,000 barrel-per-day Pasadena, Texas, refinery.

"This is an important U.S. refining project for Fluor and PRSI," said Peter Oosterveer, president of Fluor's Energy and Chemicals business group. "We have been fortunate to be involved in other recent U.S. refining projects having similar project characteristics, and we believe our demonstrated project experience will bring significant value to PRSI. We will work closely with PRSI to make this project a success."

The engineering study is currently underway in Fluor's Sugar Land, Texas, office and will be completed later this year.

Sunoco Shuts Down Idled NJ Eagle Point Refinery

Sunoco announced February 1 that it has permanently shut down its previously idled Eagle Point refinery in Westville, New Jersey, due to continuing weak demand for refined products and unfavorable market conditions.

Processing units at Eagle Point were idled in early November 2009 and have now been permanently shut down. However, refined product storage and handling operations there will continue. In addition, Sunoco is exploring a number of options for using the site in the future, including as a potential center for biofuels production. The shutdown is not expected to have a material financial impact on the company beyond what has previously been recorded in 2009.

Commenting on the shutdown, Sunoco Chairman and Chief Executive Officer Lynn L. Elsenhans said, "Given weak industry dynamics, we are confident we are taking the right actions to improve our overall competitiveness, set the stage for investing in our strong regional brand, explore opportunities in biofuels, and provide customers with a broader choice of transportation fuel options."

Motiva Port Arthur Refinery Celebrates Milestone in Its Crude Expansion Project

Motiva extended its thanks to Port Arthur and the surrounding communities for their continued support of its Port Arthur Refinery expansion project February 10 with a "topping-off" ceremony.

Upon completion, Motiva Port Arthur will be one of the largest refineries in the world - with total crude throughput capacity at about 600,000 barrels per day. The expansion project continues to boost the local and regional economies and is expected to continue employing a significant contract workforce as construction continues.

For the Motiva Port Arthur Refinery expansion, the "topping-off" designation or the tallest structure on site that has been set is the DCU2 coker unit, which will process pitch from the crude unit into gasoline and diesel-range products as well as petroleum coke, making the Port Arthur refinery the largest petroleum coke producer in the U.S. With a capacity of 95,000 barrels per day, the coker is more than 50 percent larger than the refinery's existing coker. The unit stands at 375 ft, the approximate height of a 32-story building. Unlike the existing unit, however, it will be able to remove sulfur from the hydrocarbon stream and recover propane-propylene as a liquid for sale to chemical companies.

The expansion project is expected to generate more than 6,500 construction jobs over the course of the project and up to 300 permanent jobs. A portion of those jobs have already been created and filled, with 41 percent of the new hires for the project being from Port Arthur.

The expansion project will install more than 725 pumps, 19 compressors, 500 exchangers, four gas turbines, 600 miles of pipe, 1,000 miles of cable, and poured 285,000 cubic yards of concrete from more than 40,000 truck loads.

The completed refinery will be capable of refining 6 million gallons of gasoline (enough to fill up 400,000 cars every day), more than 3.4 million gallons of ultra-low sulfur diesel and 1.3 million gallons of jet fuel on a daily basis.

The expansion project is expected to generate more than $17 billion in new economic development in Port Arthur, Jefferson County and the Golden Triangle of Southeast Texas.

U.S. Chamber of Commerce Challenges EPA's Endangerment Finding

Steven J. Law, chief legal officer and general counsel of the U.S. Chamber of Commerce, February 12 issued the following statement on the Chamber's intention to challenge EPA's decision to trigger Clean Air Act regulation:

"The U.S. Chamber strongly supports efforts to reduce greenhouse gas emissions in the atmosphere, but we believe there's a right way and a wrong way to achieve that goal.

"The wrong way is through the EPA's endangerment finding, which triggers Clean Air Act regulation. Because of the huge potential impact on jobs and local economies, this is an issue that requires careful analysis of all available data and options. Unfortunately, the agency failed to do that and instead overreached. The result is a flawed administrative finding that will lead to other poorly conceived regulations further downstream.

"The right way is through bipartisan legislation that promotes new technologies, emphasizes efficiency, ensures affordable energy for families and businesses, and defends American jobs while returning our economy to prosperity. We also need a comprehensive international agreement that includes all CO2 emitting economies, which the Chamber has been actively working toward.

"Today the Chamber is filing a formal petition indicating it will challenge EPA's decision to trigger Clean Air Act regulation, based on lapses in EPA's process in making that decision.

"The Chamber's legal challenge will focus specifically on the inadequacies of the process that EPA followed in triggering Clean Air Act regulation, and not on scientific issues related to climate change or endangerment. Further details about our challenge will be forthcoming in the coming weeks when our statement of issues is filed.

"We continue to call for Congress to address climate change policy through the legislative process, rather than having EPA misapply environmental statutes like the Clean Air Act or Endangered Species Act that were not created to regulate greenhouse gas emissions."

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

Texas Challenges EPA CO2 Mandates

Gov. Rick Perry, Attorney General Greg Abbott and Agriculture Commissioner Todd Staples on February 16 announced that the State of Texas is taking legal action in the U.S. Court of Appeals challenging the Environmental Protection Agency's (EPA) endangerment finding for greenhouse gases.

"Texas is aggressively seeking its future in alternative energy through incentives and innovation, not mandates and overreaching regulation," Perry said. "The EPA's misguided plan paints a big target on the backs of Texas agriculture and energy producers and the hundreds of thousands of Texans they employ. This legal action is being taken to protect the Texas economy and the jobs that go with it, as well as defend Texas' freedom to continue our successful environmental strategies free from federal overreach."

The state has filed a Petition for Review with the U.S. Court of Appeals for the D.C. Circuit, and will also file a Petition for Reconsideration with the Environmental Protection Agency, asking the administrator to review her decision. The state's legal action indicates EPA's Endangerment Finding is legally unsupported because the agency outsourced its scientific assessment to the International Panel on Climate Change (IPCC), which has been discredited by evidence of key scientists' lack of objectivity, coordinated efforts to hide flaws in their research, attempts to keep contravening evidence out of IPCC reports and violation of freedom of information laws.

"With billions of dollars at stake, EPA outsourced the scientific basis for its greenhouse gas regulation to a scandal-plagued international organization that cannot be considered objective or trustworthy," Abbott said. "Prominent climate scientists associated with the IPCC were engaged in an ongoing, orchestrated effort to violate freedom of information laws, exclude scientific research, and manipulate temperature data. In light of the parade of controversies and improper conduct that has been uncovered, we know that the IPCC cannot be relied upon for objective, unbiased science -- so EPA should not rely upon it to reach a decision that will hurt small businesses, farmers, ranchers, and the larger Texas economy."

As noted in comments to the EPA filed by Perry last year, the agency's decision to regulate greenhouse gases under the Clean Air Act reportedly will impose a tremendous regulatory and financial burden on farmers and ranchers, small businesses, and an energy sector that hundreds of thousands of Texans depend upon for their jobs -- not to mention Texas families who face an estimated $1,200 in increased annual living costs during a down economy.

Graham Corp Awarded $3 Mln in Refinery Orders

Graham Corporation has announced that it has been awarded two orders from refinery customers totaling approximately $3 million.

One order is for an upgrade to an existing Graham ejector system at a U.S. refinery that is being reengineered to expand the refiner’s capability to process a wider variety of crude feedstock. The order is expected to ship in the second quarter of Graham’s fiscal year 2011, which begins on April 1, 2010.

The second order is for custom-engineered steam surface condensers to be installed at a large oil refinery currently under construction in the Middle East and is Graham’s third order related to this project. The two previous orders are currently in backlog. Shipment of the condensers is scheduled for the fourth quarter of fiscal year 2011. With this most-recent order, Graham has now received approximately $23 million in bookings from major refinery projects that are currently moving forward in the region, although the Company does not expect that additional significant orders will be released for the major refinery projects in that region for the next nine to 18 months.

Graham’s total order activity for the third quarter of fiscal year 2010, which ended December 31, 2009, was approximately $51.6 million. Such amount represents orders received from a variety of markets, including refining, chemical processing, power generation and fertilizer for projects in China, Indonesia, Thailand, India, Mexico, Saudi Arabia and the United States. Included in the $51.6 million was a very large order, exceeding $25 million, from Northrop Grumman Shipbuilding for the supply of four steam surface condensers for the U.S. Navy's second aircraft carrier of the Gerald R. Ford class, the unnamed CVN 79. Revenue for the large order for the U.S. Navy aircraft carrier is expected to be recognized beginning in fiscal 2012 and is expected to continue to be recognized into fiscal 2014.

Consistent with its prior guidance, Graham continues to expect that revenue for fiscal year 2010, which ends March 31, 2010, will be in the range of $60 million to $65 million and gross margin will be in the 33% to 35% range.

James R. Lines, Graham’s President and Chief Executive Officer, commented, “Throughout the downturn in our primary industries that began over 18 months ago, Graham’s focus has been on strengthening customer relationships in order to identify and win potential orders in an extremely competitive environment. We believe that the recent robust order level and the diversity of end-user markets and geographies are encouraging signs. Because we historically have tended to lag economic recovery by nine to 18 months, we believe that sales over the next few quarters will continue to reflect the sporadic nature of order receipt that began over a year ago. However, we also believe this should be the bottom of the cycle for us, and we expect to begin to see revenue growth during the second half of fiscal 2011.”

MEXICO

Mexico's Pemex Awards Saipem $345 Mln Refinery Deal

Mexico's state oil company Pemex said on February 8 it has awarded contracts valued at $345 million to Italy's Saipem SpA to construct clean gasoline units at two of its refineries.

Pemex said the present value of Saipem's bid, which it calculated at $345 million, was superior to offers it received from Samsung Engineering and a consortium of Mexican engineering group ICA and Fluor Corp.

The contracts cover the construction of equipment at Pemex's Salamanca and Tula oil refineries to reduce the sulfur content of gasoline produced at those plants.

Mexican environmental regulations require Pemex, the monopoly supplier of oil products in Mexico, to reduce the amount of sulfur in motor fuels to cut pollution.

Pemex rejected the original bids under the tender in May and asked the contenders to submit new offers. Pemex said it based its decision to award the contracts to Saipem on economic factors, the time it would take to construct the new processing units, overall quality and the amount of domestic-origin content the contractor was prepared to employ.

BRAZIL

Petrobras Executes Contracts for Construction of Abreu e Lima Refinery in Brazil

Petroleo Brasileiro S.A (Petrobras) has executed five contracts, in the amount of BRL8.9 billion, for the construction of the Abreu e Lima refinery. The first contract, worth BRL3.4 billion, is for the services required to build the delayed coking units - UCR (U-21 and U-22), including the substations, control rooms, and caustic regeneration treatment sections (U-26 and U-27).

The contract was signed with the Camargo Correa – CNEC consortium, formed by Construcoes e Comercio Camargo Correa S.A. and CNEC Engenharia S.A.

Another contract that was signed was for the implementation of the diesel (U-31, U-32) and naphtha (U-33 and U-34) hydrotreatment units and of the hydrogen generation units (U-35 and U-36). This contract, signed with the CONEST-UHDT consortium (formed by Odebrecht Plantas Industriais e Participacoes S.A. and Construtora OAS Ltda.) is worth BRL3.19 billion.

The contract for the construction of the atmospheric distillation units - UDA (U-11 and U-12), worth a total of BRL1.48 billion, meanwhile, was signed with the RNEST-CONTEST Consortium (Odebrecth Plantas Industriais e Participacoes S.A. and Construtora OAS Ltda.).

In addition, a contract was signed for the deployment of the refinery’s product receipt and shipment pipelines -- including consistency analyses services for the basic project and for the executive project, material and equipment supply, civil construction, electrical installations, electromechanical assembly, preservation, conditioning, testing, and pre-operation and assisted operation support services. The contract was signed with the Conduto - Egesa consortium (Conduto - Companhia Nacional de Dutos and Egesa Engenharia S.A.) and is worth BRL649 million.

The fifth contract that was signed was for civil infrastructure services and includes the clean rainwater draining system, small concrete bridges, street construction layout and paving, storage areas and gates. This service will be carried out by the Construcap - Progen consortium (Construcap CCPS Engenharia e Comercio S.A. and PROGEN Projetos Gerenciamento e Engenharia Ltda.) and is worth BRL120 million.

The Abreu e Lima refinery will be built in the state of Pernambuco in partnership with Petróleos de Venezuela SA (PDVSA) and will be capable of processing 230,000 barrels of heavy oil per day.

ASIA

CHINA

CNOOC to Build Zhuhai Terminal for Deepwater Gas

CNOOC will build a terminal in Zhuhai to receive natural gas from China's first deepwater field in the South China Sea. The receiving terminal includes one production area, one living area and two berths with docking capacity of 30,000 metric tons and 5,000 metric tons each, encompassing an area of 1.45 million sq m.

Shell Withdraws from Sinopec, Kuwait Refinery Project

Shell is no longer involved in joining Sinopec and Kuwait Petroleum Corp in a major refinery project in China. KPI oversees KPC's international downstream marketing operations and represents Kuwait in talks with potential partners. KPC and Sinopec Corp have a memorandum of understanding to build a 300,000-barrel-a-day refinery and a petrochemical complex in Guangdong that will produce one million metric tons a year of ethylene and are waiting for formal Chinese government approval to go ahead.

Alfa Laval Gets Refinery Heat Exchangers Order

Alfa Laval has received an order for Alfa Laval Packinox heat exchangers in China. The delivery is scheduled for 2010. The Alfa Laval Packinox plate heat exchangers will be used in the production of mixed Xylene at a new aromatics plant in an integrated refinery and petrochemical complex in China.

PetroChina Starts Ningxia Refinery Construction

PetroChina has started construction of a refinery in Ningxia with annual capacity of 5 million-tonne. The project is able to produce 1.73 million tonnes/year of gasoline and 2.38 million tonnes/year of diesel upon completion in Q4 2012. It will also produce 210,000 tonnes of liquefied petroleum gas (LPG) and 100,000 tonnes of polypropylene annually. The product oil produced in the refinery will likely be used to fulfill demand in Ningxia and neighboring Qinghai province.

Sinopec Plans 33% Expansion of its Maoming Refinery

Sinopec plans to reconstruct and expand its Maoming Petrochemical’s crude processing capacity to 18 million tonnes a year. The expansion will raise Maoming's refining capacity by 33% from the current crude processing capacity of 13.5 million tons a year. The expansion project has been approved by the Chinese government and construction will commence next year, with operations expected to start in 2012.

Sinopec Group will build a new 10 million tonne-a-year crude oil distillation unit and shut two existing units with annual capacities of 2.5 million tons and 3 million tons. It will also add a 2.4 million ton-a-year hydrocracker and a 2.2 million ton-a-year catalytic cracker. The Maoming Petrochemical Co will raise its crude oil processing capacity to 40 million metric tonnes annually.

INDIA

India to Finalize Boiler Inspection Rules

The Indian government on February 11 said it will soon finalize rules for third-party inspection of boilers, a move that will benefit a wide spectrum of industries especially in power and refinery sectors.

"We will be able to finalize regulations (for inspection by third parties) in about three months time which includes statutory period of 45 days for pre-publication," the commerce and industry ministry said in a statement.

The Central Boiler Board has already finalized the basis on which the rules and regulations for inspection of boilers by the third parties and competent persons would be framed, the statement added.

After coming into force, the regulations would lead to a "simplified and more accessible user friendly framework for the administration of the Boilers Act and also protect manufacturers/users interest without sacrificing the safety of the boilers".

The new norms, it added, would benefit industries in sectors like power, chemicals, refineries, steel, paper and sugar.

The Boilers Act provides for safety of life and property from the danger of explosion of boilers. The Act also provide for registration and inspection of boilers during operation and maintenance.

SINGAPORE

Chiyoda Singapore to Provide BDEP to Shell Eastern Petroleum's Pulau Bukom Refinery

Chiyoda Singapore (Pte) Limited, a group company of Chiyoda Corporation signed a contract with Shell Eastern Petroleum Limited in Singapore, for Basic Design and Engineering Package (BDEP) for its Pulau Bukom Refinery for a desulfurization facilities in October, 2009. The work will be executed by Chiyoda Singapore (Pte) Limited as prime contractor, with the collaboration of Chiyoda Corporation.

Chiyoda group has a long relationship and global experience with Shell.

The contract on a unit rate basis shall be for a period of nine (9) months and comes with an option to the next phase for further three (3) years. The scope of the works will comprise basic engineering and cost estimate for further step of the project.

Chiyoda is urging to strengthen Chiyoda Singapore (Pte) Limited as the regional headquarters in South East Asia which is one of the main parts of new mid term management plan for the duration of April 2009 to March 2013 of Chiyoda group. It is sure that this project will definitely be a trigger to boost its growth of the operation in the region.

VIETNAM

Vietnam Opens Tender for Refinery Construction

Nghi Son Refinery Co. has started offering bidding documents for a package to build Vietnam's second oil refinery, state media said February 3.

The company will sign a contract with the winning bidder in the third quarter this year for the construction of Nghi Son Refinery in Thanh Hoa province, 150 kilometers south of Hanoi, the Dau Tu newspaper reported. The paper is owned by the Ministry of Planning and Investment.

The plant, with a planned throughout capacity of more than 10 million metric tons of crude oil a year, or 200,000 barrels a day, is scheduled to start production from late 2013, the newspaper said.

It will be the second oil refinery in Vietnam, after the 130,000-barrel-a-day Dung Quat refinery in the central province of Quang Ngai.

Nghi Son is a joint venture in which state-run Vietnam Oil and Gas Group holds a 25.1% stake, Kuwait Petroleum Corp. 35.1%, Idemitsu Kosan Co. (5019.TO) 35.1% and Mitsui Chemicals Inc. (4183.TO) 4.7%.

EUROPE / AFRICA / MIDDLE EAST

BULGARIA

Flowserve Wins $31 Mln Pump Order for Bulgarian Refinery

Flow control products provider Flowserve Corp reported on February 25 the receipt of a pump and solutions order valued at more than US$31 million for Flowserve proprietary ebullating pumping systems and heavy-duty high-energy barrel pumps.

The customer is LUKOIL Neftochim Burgas AD.

According to report, LUKOIL Neftochim Burgas AD is the largest oil refinery in the Balkans. The pumps will be used in the refinery's new H-Oil & VGO complex in Burgas, Bulgaria. The H-Oil & VGO complex has expected capacity of 47,000 barrels per day.

Flowserve claimed that its ebullating pumps are the only pumps in the world that can withstand the high temperatures and pressures required by the H-Oil RC process used at the Burgas ebullated bed hydrocracker.

Additionally, the pumps will be equipped with Flowserve Technology Advantage Online Assurance, a program available through the newly formed Flowserve Integrated Solutions Group that is designed to provide 24/7 monitoring and life-cycle management to optimize asset availability.

In conjunction with the agreement, Flowserve will support the LUKOIL Neftochim Burgas H-Oil & VGO project through its global network of Quick Response Centers (QRCs).

EUROPE

European Oil Refineries Sold or Up for Sale

Many European oil and chemical firms have been looking to sell domestic refineries as demand for fuels and petrochemical products has fallen more sharply in Europe than most other parts of the world, hitting profit margins. However, some have failed to find buyers. Following are the refineries around Europe that have been sold or are up for sale:

HARBURG, HEIDE, GERMANY STANLOW, UK GOTHENBURG, SWEDEN

* Royal Dutch Shell (RDSa.L) said about 560,000 bpd, or 15

percent of its global total refinery capacity was under review.

[ID:nLDE610168] [ID:nLDE6131AY]

* Shell has been in talks with India's Essar Oil (ESRO.BO)

on the sale of the three refineries. [ID:nLU627560]

* Essar last year said the exclusive talks would last until

the end of November but Shell said earlier in February they were

still in talks. [ID:nDEL298848]

* Essar has been in talks with UBS, Citigroup and JPMorgan

for a loan of up to $750 million if it wins the bidding for the

three refineries, sources said last year. [ID:nBMA005648]

* Harburg has a capacity to process 5.2 million tonnes of

crude oil a year (roughly 110,000 bpd). It is moderately complex

and its key units are a catalytic cracker for gasoline making

and lubricant systems.

* Heide can process 4.5 million tonnes a year (93,000 bpd).

It is an integrated, petrochemical oriented plant. * Stanlow has a capacity to process 267,000 bpd.

* Gothenburg has a capacity to process about 78,000 bpd.

LIVORNO, ITALY * Italy's Eni (ENI.MI) is no longer looking to sell Livorno.

[ID:nLDE617172]

* Last September it said it was in preliminary talks with UK

private equity fund Klesch & Co to the refinery. [ID:nL1634701]

* Livorno is an 85,000 bpd simple refinery.

ANTWERP, BELGIUM TEESSIDE, UK

* Swiss-based refiner Petroplus (PPHN.VX) has agreed to sell

the Antwerp bitumen plant to Vitol. [ID:nLQ83975]

* Petroplus idled its 117,000 bpd Teesside plant in March

last year. Initially it was seeking a buyer of the simple plant.

* Petroplus Chief Executive Thomas O'Malley sold his

previous venture U.S. refiner Premcor Inc to Valero Energy Corp

in 2005 and is now in talks with Valero via PBF Investments to

buy its shuttered 210,000 bpd refinery in Delaware City, the

United States. [ID:nN22150443]

GRANGEMOUTH, UK

* Located in Scotland, the plant processes about 200,000

barrels of crude oil per day.

* Current operator British chemicals maker Ineos [INEOSP.UL]

bought the plant from BP (BP.L) in 2005.

* Chinese oil firm PetroChina (601857.SS) is in talks to

invest in the Grangemouth refinery. [ID:nSP350411]

* Grangemouth is a moderately complex refinery equipped with

both hydrocracking and catalytic cracking systems, giving it

flexibility to produce gasoline and middle distillates, such as

diesel, according to market demand.

* The plant is connected to the North Sea Forties pipeline,

which delivers about 650,000-700,000 bpd of crude oil, roughly

half of the UK's daily production.

Morgan Stanley has a deal with Ineos for product marketing

and some crude oil purchase.

VLISSINGEN, THE NETHERLANDS

* Russia's Lukoil (LKOH.MM) bought a stake in the 153,000

bpd Vlissingen refinery in the Netherlands from French major

Total (TOTF.PA) in June last year, blocking a bid by U.S.

refiner Valero (VLO.N) [ID:nLJ579651] [ID:nLR73458]

* Total will retain a 55 percent stake in the plant. Lukoil

has acquired 45 percent, which was previously held by Dow

Chemical (DOW.N).

* U.S. oil major ConocoPhillips (COP.N) owns 20 percent of

Lukoil.

* Vlissingen is a moderately complex, diesel-oriented plant.

It is equipped with a hydrocracker, which typically allows a

refiner to process relatively heavier, cheaper crude oil such as

Russian Urals.

FRANCE

Total to Create Technical Support Center and a Refining Training Center at it’s Flandres Refinery

At a special meeting of the Central Works Council on February 1, 2010, to discuss the Flandres refinery’s current situation and long-term future, Total stated that it hoped to continue studies currently under way to secure the future of the site, reflecting its commitment to reaching a comprehensive and satisfactory solution in terms of operations and employment.

In response to the structural, permanent decline in petroleum product demand affecting the refining industry, operations at Flandres were halted in September 2009. The market is not forecast to improve, which means that the scheduled five-year turnaround maintenance program cannot be performed in March 2010.

Without anticipating the final decision that will be made, Total is responding to employee and contractor concerns by committing to:

· guaranteeing each employee a job at Total that is a fit with his or her competencies:

· ensuring that the Flandres establishment has a future within the Group. Its new activities will leverage the full spectrum of employee

competencies and expertise, in particular through the creation of a

Refining/Operations Technical Support Center for the Group and a

training school, which combined would maintain two-thirds of the current

refinery jobs.

· continuing to be a major economic partner of the Dunkirk region, especially the port, through a potential interest in EDF’s planned LNG terminal,

which would cement the region’s energy specialization.

· helping to secure the future of local contractors.

· working with all regional stakeholders.

To continue the dialogue engaged with employee representatives, Total has proposed a schedule of meetings so that a decision can be reached by the end of June.

Total Delays Decision on Dunkirk Refinery

Total SA postponed to the end of June its “final decision” on the future of the Dunkirk refinery that it previously said it would announce February 1 at a special meeting of the Central Works Council.

Instead Total stated in a press release it “hoped to continue studies currently under way to secure the future of the site, reflecting its commitment to reaching a comprehensive and satisfactory solution in terms of operations and employment.”

Prior to the proposed meeting, Total refused to confirm or deny reports it would shut down the refinery. Nonetheless, strong pressure from Industry Minister Christian Estrosi and the Total trade unions had prompted this last-minute change of plans.

Estrosi said that “so long as there were not the necessary guarantees on the perenniality” of the 800 jobs concerned, “the government would not accept the shut down of the refinery.”

Not only the refinery and subcontracting jobs are threatened but also the port of Dunkirk, France's third largest, as 18% of its annual revenues are generated by oil traffic.

In its press release, Total confirmed its “potential interest” in Electritie de France's “planned LNG terminal at Dunkirk, which would cement the region's energy specialization.” EDF has not yet made a final decision on the project, which is estimated would cost €1-1.4 billion and would come on stream in 2014.

In the same press release Total announced it will set up in Dunkirk a refining operations technical support center and a training school “which combined would maintain two thirds of the current refinery jobs.”

Total noted that due to refining overcapacities the refinery has been idle since September, adding that “the market is not forecast to improve,” so the scheduled March turnaround “cannot be performed.”

Total Refining Vice-Pres. Michel Benezit was more specific, saying, “All scenarios are still possible but no way will the refinery continue to process crude oil.”

SWEDEN

Emerson Installs Wireless Tech at Swedish Refinery

Emerson Process Management announced February 1 that its Smart Wireless technology has been installed by Nynas AB to upgrade an underground storage tank monitoring system, creating an online integrated solution and reducing installation costs by EUR10,000 compared to a wired alternative.

Nynas is an international group that refines heavy crude oil to produce bitumen and naphthenic specialty oil products. The company owns four refineries, one of which is located at Nynäshamn in Sweden. The underground storage tanks at Nynaeshamn are monitored for unequal vapor pressures which can indicate potential blockages in the pipes that connect the tanks. The existing pressure switches are aging and due to be replaced. They were not continuous, only indicating when set levels had been exceeded.

"When a signal cable on one of the switches failed we decided to upgrade to an online solution that would bring storage tank measurement data directly into the plant's control system and help identify blockages much earlier," said Morten Hansen, senior instrument engineer, Nynas. "We were also interested in trialing wireless technology and this application presented the perfect opportunity."

The underground storage tanks are located a considerable distance from the control room and if Nynas had installed conventional instrumentation, new cabling would have been required to connect to the remote devices. The cost of this was prohibitive so Nynas looked at the benefits of using wireless.

With no line of sight between the location of the pressure transmitters and the ideal position for the gateway, Nynas selected Emerson's Smart Wireless products which use self-organizing technology to connect the devices. With this technology, each wireless device can act as a router for other nearby devices, passing messages along until they reach their destination. If there is an obstruction, transmissions are simply re-routed along the network until a clear path to the Smart Wireless Gateway is found. The technology also offers redundant communication via two or three routes ensuring greater than 99 percent communication reliability.

Two additional Rosemount wireless pressure transmitters provide measurements from the very large underground storage rooms (bunkers) containing crude oil. Measurements are taken to identify unequal vapor pressures in the different sections of the bunker. Data is transmitted every 60 seconds to a Smart Wireless Gateway located 650 meters from the pressure transmitters. The Gateway is connected to Emerson's DeltaV digital automation system using Modbus communications.

A further two Rosemount wireless transmitters installed on large vessels within the facility act as repeaters providing additional routes for the data and ensuring reliability of connection. Additional wireless measurement devices can be easily added as required and, by increasing the number of routes available to send data back to the gateway, they make the network even more reliable.

"Using Emerson's wireless solution we have been able to significantly reduce the cost of upgrading the pressure measurement to an online system. Installing new cabling would have cost EUR 10,000 more than the wireless solution," said Hansen.

"Installing the Emerson devices onsite was relatively easy and it took less than a day to complete the configuration and start-up procedure," said Hansen. "We have also found the technology easy to use with the ability to manage the devices using Emerson's AMS Suite predictive maintenance software."

Having successfully trialed the Smart Wireless technology, Nynas has expanded the wireless network at the site. Rosemount Rex radar level gauges, equipped with Smart Wireless THUM adapters have been installed, replacing two existing mechanical servo gauges. A technology change of this type would normally require the replacement of the signal cables, but by using a THUM adapter wireless communication is added to the instrument, thereby avoiding the need for expensive cable installation.

The THUM adapter is a WirelessHART device that can retrofit on almost any two or four wire HART device, without special power requirements, to enable wireless transmission of measurement and diagnostic information. Devices with the THUM adapter operate as components of Emerson's Smart Wireless self-organizing field network.

ALGERIA

Alfa Laval Wins Refinery Heat Exchangers Order in Algeria

Alfa Laval has received an order for Alfa Laval Packinox heat exchangers from an Algerian refinery. The order value is about 60 MSEK and was booked late December 2009. Delivery is scheduled for 2011.

The Alfa Laval Packinox plate heat exchangers will be used in the catalytic processing section in the production of mixed Xylenes, which, among other things, can be used for production of PET bottles.

“There is no product that can match the Alfa Laval Packinox heat exchanger. This massive – but still compact – welded heat exchanger offers an unique energy efficiency especially well suited for the high demands within the refinery and petrochemical industries,” says Lars Renström, President and CEO of the Alfa Laval Group.

The Alfa Laval Packinox plate heat exchanger for this type of application can handle temperatures from 80°C up to 530°C. By replacing traditional shell and tube heat exchangers with one single Alfa Laval Packinox heat exchanger a refinery can save between SEK 10 and 20 million per year in reduced energy costs.

UGANDA

Foster Wheeler Wins Uganda Refinery Feasibility Study

Foster Wheeler AG announced February 2 that its Global Engineering and Construction Group has been awarded a contract by The Government of the Republic of Uganda to undertake a feasibility study for the development of an oil refinery with a capacity of up to 150,000 barrels per day in Uganda.

The Foster Wheeler contract value for this project was not disclosed and will be included in the company's fourth-quarter 2009 bookings.

Foster Wheeler's scope of work will include the development of the location and configuration of the planned refinery, which will process Ugandan crude. The study, which is scheduled for completion in mid-2010, will also include the assessment of options for the development of the oilfield, crude transportation, and an evaluation of the relative economics of developing the new refinery versus alternative options, including pipelines, for exporting the crude oil.

"We are pleased to be involved in the first oil refinery project in Uganda. Our proven track record in objectively evaluating a wide range of options for upstream oil and gas field development and for attaining the optimum configuration for grassroots refineries, together with our expertise in projects in remote locations, mean we are ideally positioned to help the Ugandans achieve a viable, realistic plan for implementing this important project," said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.

"This process attracted 35 companies which expressed interest in undertaking the study. Out of these, six were contacted to submit their proposals and the proposal of Foster Wheeler was considered the best," said Fredrik Kabagambe-Kaliisa, the Energy and Mineral Development Permanent Secretary for the Ugandan Government.

TURKMENISTAN

Turkmenbashi Complex of Oil Refineries Launches Major Investment Project

The Turkmenbashi complex of oil refineries launched another major investment project - the construction of a unit of delayed coking in combination with a unit of tar deasphalting.

As the Turkmenistan.ru correspondent has learned from the Ministry of Oil and Gas Industry, a modern complex worth more than EUR 200 million is being built by Turkish company "Lotus Energy" on a "turnkey" basis in accordance with the base project developed by the international corporation "Foster Wheeler" (USA) and detailed designs developed by the construction firm "FW Italian", which is the Italian branch of the corporation.

The delayed coking unit is designed for processing 900 thousand tons of raw materials per year, while the tar deasphalting unit - for processing 500 thousand tons. The implementation of this project will help significantly increase the production at the Turkmenbashi oil refineries that is in great demand domestically and overseas. Coke is used as fuel and reagent in the ferrous electrometallurgy, in steel melting, in production of aluminum and its alloys, in manufacture of electrodes for various purposes. Asphalt-free oil is a valuable raw material for the base engine oil and clean high-octane gasoline. The residual asphalt and resin will be used for the manufacture of high-quality road asphalt.

KUWAIT

Kuwait to Re-examine $30 Bln Refinery Projects

Kuwait plans to re-examine two key oil projects soon, a top oil executive said February 15, after political disputes stalled the ventures, estimated to cost about $30 billion.

"The two projects will shortly be referred to the Supreme Petroleum Council which has the ultimate decision-making authority on oil projects," Saad al-Shuwayeb, chief executive of national conglomerate Kuwait Petroleum Corp., told the official KUNA news agency.

The projects include building a 615,000 barrels per day refinery for an estimated $15 billion, and upgrading two of three existing refineries at the cost of another $15 billion.

The two projects have been stalled for years as a result of political disputes between the government and the outspoken parliament in this member of the Organization of Petroleum Exporting Countries.

The government scrapped the new refinery project about a year ago, months after awarding contracts to four South Korean companies, a Japanese firm and U.S. giant Fluor.

Lawmakers have opposed the project, citing flawed procedures in awarding the contracts, because it did not go through the state-run Central Tenders Committee to ensure transparency.

The project to upgrade the refineries has been running years behind schedule and its tendering process has been repeatedly delayed.

Once completed, the two projects would give the oil-rich emirate a refining capacity of 1.4 million barrels per day, up from around 920,000 barrels per day at present.

SAUDI ARABIA

Foster Wheeler, SOFCON to Form Saudi-based Engineering Hub

Foster Wheeler AG announced February 2 that a subsidiary of its Global Engineering and Construction Group has signed a joint venture agreement to form a jointly owned Saudi Arabian entity with A. Al-Saihati, A. Fattani and O. Al-Othman Consulting Engineering Company (SOFCON) in the Kingdom of Saudi Arabia. The terms of the agreement were not disclosed.

The new entity, Foster Wheeler SOFCON Consulting Engineering Company, is planned as a regional engineering hub and will be based in the city of Al-Khobar in the Kingdom of Saudi Arabia. Foster Wheeler SOFCON will focus on providing full-service engineering and project management services for onshore/offshore oil and gas, refining, petrochemicals and associated infrastructure projects in Saudi Arabia.

"Foster Wheeler and SOFCON have a long and outstanding record of successful cooperation in project execution in Saudi Arabia. The formation of this new company demonstrates the ongoing commitment of our two companies in working together to deliver successful projects in Saudi Arabia and the provision of high quality services and expertise from a local base," said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.

"It is our goal to make Foster Wheeler SOFCON the leading full-service engineering and project management provider in Saudi Arabia, delivering professional and competitive services in front-end engineering, detailed engineering, procurement, construction and project management. The new entity will bring an enhanced value proposition in the development of the local economy and capabilities," said Ala'a Fattani, president and chief executive officer, SOFCON.

McIlvaine Company,

Northfield, IL 60093-2743

Tel: 847-784-0012; Fax: 847-784-0061;

E-mail: editor@mcilvainecompany.com