December 5, 2007 at 10:28 am #3857
Foster Wheeler Retained by NTR Acquisition Co. to Perform Engineering Work on Future Refinery Assets
HAMILTON, Bermuda–(BUSINESS WIRE)–Nov. 15, 2007–Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its subsidiary Foster Wheeler USA Corporation, part of its Global Engineering and Construction Group, has signed an agreement with NTR Acquisition Co. (NTR) to perform initial engineering work on planned projects at Kern Oil & Refining Co., pending the closing of NTR’s acquisition of Kern. Kern’s refinery is located in Bakersfield, California.
The terms of the agreement were not disclosed and bookings will be made as work packages are released by NTR. Foster Wheeler expects that the first work will not be released by NTR until after the acquisition closes. NTR anticipates the acquisition of Kern closing in in the first quarter of 2008.
“Foster Wheeler is pleased to have been selected by NTR’s experienced management team to commence engineering projects for the Kern facility,” said Troy Roder, president and chief executive officer of Foster Wheeler USA Corporation. “NTR’s management has successfully executed such projects with Foster Wheeler in the past and we look forward to collaborating with NTR in this important undertaking within the company’s growth strategy in heavy crude oil refining.”
“Our agreement with Foster Wheeler is a significant first initiative in the future transformation of Kern’s facility into a world-class heavy crude oil refinery,” said Mario E. Rodriguez, chief executive officer of NTR. “Our acquisition of Kern effectively launches the platform for NTR’s growth strategy and we are prepared to quickly implement our plans for additional investment in Kern’s operations.”
NTR Acquisition Co. is a special purpose acquisition company focused on the petroleum refining and marketing industry.
NTR announced on November 5, 2007 that it had signed agreements to acquire Kern, a privately held independent petroleum refining and marketing company, from Casey Co., Kern’s sole shareholder. As part of the acquisition, NTR expects to make strategic capital investments in Kern’s refinery operations to expand its conversion capacity and to improve its product yield. Foster Wheeler’s work will initially concentrate on engineering assessments in advance of specific projects, which are expected to include the addition of a transmix splitter, isomerization unit, hydrocracker and delayed coker to the refinery. The acquisition, which was unanimously approved by NTR’s board of directors, is subject to NTR shareholder approval, applicable regulatory approvals and other customary closing conditions.
Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, visit our Web site at http://www.fwc.com.
About NTR Acquisition Co.
NTR is a special purpose acquisition company organized under the laws of the State of Delaware on June 2, 2006. NTR was formed to acquire, through a merger, capital stock exchange, asset acquisition or other similar business combination, one or more businesses or assets in the energy industry, with a particular focus on businesses or assets involved in the refining, distribution and marketing of petroleum products in North America.
About Kern Oil & Refining Co.
Kern Oil & Refining Co. (“Kern”) is an independent petroleum refining and marketing company with its refinery facility located in Bakersfield, California. The company’s primary products include California-approved diesel fuel and gasoline, atmospheric gas oil, fuel oil and aliphatic solvents, which are marketed mainly in California and its neighboring states. Kern processes primarily San Joaquin Valley and Kern County, California, crude oils. Kern qualifies for state and federal “small refiner” status. Kern employs about 110 people and is committed to providing a safe working environment for its employees while working diligently to provide cleaner fuels.
December 5, 2007 at 10:30 am #7146
Here is update on Kern Refinery acquisition by NTR – announcement of Foster Wheeler to do Engr. Feasibility and FEED on future Refining assets / investments – like a New Coking unit for current Kern Bakersfield Refinery to have more heavy crude capability.
NTR-Kern acquisition is set close 1Q 2008, NTR & FW are set pull trigger on feasibility & FEED so that would put a new coker online ~2011 earliest.
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