S-OIL lets contracts for refinery upgrade

S-OIL Corp., Seoul, has let two contracts to a unit of Foster Wheeler AG’s Global Engineering and Construction group for a residue upgrading project at S-OIL’s 669,000-b/d Onsan refinery complex in Ulsan, South Korea.

Under one contract, Foster Wheeler will provide front-end engineering and design for the residue upgrading project, which will include the addition of a residue hydrodesulfurization unit, a residue fluid catalytic cracker, and multiple downstream upgrading units to enable the refinery to produce higher value products and maximize production of polymer-grade propylene, according to Foster Wheeler.

In addition to the FEED contract, S-OIL also awarded Foster Wheeler a contract to prepare the tender for the engineering, procurement, and construction phase of the Onsan upgrade, which will include procuring long-lead items, evaluating EPC bids, and preparing a cost estimate to support S-OIL’s final investment decision, Foster Wheeler said.

Values for the contracts were not disclosed but will be included in Foster Wheeler’s first quarter-2014 bookings, the company said.

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