Foster Wheeler AG’s (FWLT) subsidiary, Global Engineering and Construction Group, entered into a joint venture agreement with The State Oil Company of Azerbaijan Republic (SOCAR) in the Republic of Azerbaijan. As per the Memorandum of Understanding (MoU) signed by the companies, a jointly-owned company will be formed.
A state-owned company, SOCAR works in the fields of oil and gas exploration, production, transportation and marketing. SOCAR plans to construct an oil, gas processing and petrochemical complex in Garadag, Republic of Azerbaijan. The newly formed joint company will provide process, engineering, procurement, construction supervision and project management services related with the expansion of the new oil, gas processing and petrochemical complex.
The new entity will have its headquarters in Baku and will be established and incorporated on a joint action plan by of Foster Wheeler and SOCAR. Both the companies share a strong working relationship as Foster Wheeler provides design to the Aegean oil refining facility in Turkey for SOCAR and its joint-venture partner.
Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States. The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. Major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).
We continue to maintain a Neutral rating on Foster Wheeler, with a Zacks #2 Rank (Buy recommendation) over the next one-to-three months.
