4. International Engineering Firm (EPC)International Engineering Firm (EPC)
with over 100 Years ofwith over 100 Years of
Dedicated Services to theDedicated Services to the
Process and Energy IndustriesProcess and Energy Industries
Foster Wheeler
5. A global business: over 10,500 highly skilled people
Reading
Milan
Houston
Singapore
CLINTON, NJ
Helsinki
Corporate Center
Operating Unit HQs and/or Main Engineering Centers
Regional Engineering Centers
Sales/Local Service Offices
Manufacturing Centers
A global network of high-quality resources,
enabling us to deliver local service and local
content, and to access local labor markets
Shanghai
Chennai
Foster Wheeler Operations
6. FOSTER WHEELER LIMITEDFOSTER WHEELER LIMITED
FW Energy InternationalFW Energy International
FW Energy CorpFW Energy Corp.
ENGINEERING
AND
CONSTRUCTION
ENGINEERING
AND
CONSTRUCTION
FW USA Corp.FW USA Corp.
FW Energy LimitedFW Energy Limited -- U.K.U.K.
FW Continental EuropeFW Continental Europe
FW Asia PacificFW Asia Pacific
ENERGY
EQUIPMENT
ENERGY
EQUIPMENT
2006 Revenue: $2.8 Billion Backlog: $5.4 Billion2006 Revenue: $2.8 Billion Backlog: $5.4 Billion2006 Revenue: $2.8 Billion Backlog: $5.4 Billion
Foster Wheeler Corporate Overview
7. Refining
Petrochemicals
Chemicals
Hydrogen / GTL / Gasification
Oil and Gas
Power
Pharmaceuticals and Fine Chemicals
Build Own and Operate
Fired Heaters
Coke Drum Unheading Systems
Steam Generators
Boilers
Condensers
SCR’s
ENGINEERINGENGINEERING
& CONSTRUCTION& CONSTRUCTION
SERVICESSERVICES
(EPC or(EPC or EPCmEPCm))
EQUIPMENTEQUIPMENT
SUPPLYSUPPLY
Foster Wheeler Services & Products
8. Leader in Refinery Process
Engineering
200+ Hydroprocessing Units
200+ Crude Units
200+ Vacuum Units
80+ Catalytic Reforming Units
100+ FCC Units
80+ Cokers
40+ Alkylation Units
50+ Deasphalters
20+ Catalytic Polymer Units
30+ Aromatics units
20+ Lube refineries
50+ Hydrogen Plants
80+ Sulfur Plants
Reactor Regenerator Assembly with UOP VSS
Technology at Premcor FCCU, Memphis, TN
9. Sriracha, Thailand
Singapore
Houston, Texas
Milan, Italy
Madrid, Spain
Perryville, New Jersey
Paris, France
Reading, U.K.
Foster Wheeler E&C Centers
North America 1,300
United Kingdom 3,200
Italy 1,200
France 500
Spain 650
Singapore 400
Thailand 600
China 900
Other worldwide 1,750+
Total 10,500+
10. FW Houston presence since 1940s
Since 1994, U.S. EPC Center for Oil & Gas, Refining, and Petrochemical Projects
Office space in 3 buildings
Capacity for over 1200 Engineering and Design Staff
Fully Integrated Design Systems (CAD) and Communications Technology
Foster Wheeler Houston
Operations
11. End market diversity of backlog
December 29, 2006
Total: $5.4 billion
Backlog includes flow-through costs
29.0%
17.2%
32.0%
16.6%
3.2%
2.0%
Oil & Gas
Refining
Chemicals
Power Equip. & Services
Pharmaceutical
Power Plant Ops, Other &
Eliminations
12. 15 August 2007Bill Meyer
1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
14. 15 August 2007Bill Meyer
Cost Downside
Increased cost of steel
Increased cost of shipping
Potentially - increased cost of transport and installation
Modularization
15. 15 August 2007Bill Meyer
Cost Downside
Increased cost of steel
Increased cost of shipping
Potentially - increased cost of transport and installation
Increased cost of engineering
Modularization
16. 15 August 2007Bill Meyer
Cost Upside
Move labor cost offsite to cheaper labor supply
Reduce indirect costs (camp, construction supervision, consumables etc
at the site rates)
Improved productivity (weather, flexible workforce, site accessability etc)
Reduced schedule - reduces construction indirects
[Positive impact to NPV if revenue stream begins earlier]
Modularization
18. 15 August 2007Bill Meyer
Cost Benefits
Economic Productivity Factor using Far East Yards
On-site Off-site
Labour Productivity 1.70 3.5
Composite Manhour cost $105.00 $12.10
Relative manhour cost c/w Gulf Coast $178.50 $42.35
Economic productivity ratio 4.21 : 1
Modularization
19. 15 August 2007Bill Meyer
MODULE vs STICK COST DIFFERENTIALS
Modular versus Stick built costs
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Const. Mngmt cost Δ
Foundation cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
labor cost
Savings
Millions$
Modularization
Existing Project Data
(Note – All projects have different cost drivers )
20. 15 August 2007Bill Meyer
Modular versus Stick built costs
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
Modular versus Stick built costs
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
Modular versus Stick built costs
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
COST DRIVEN MODULAR
PROJECT
SCHEDULE DRIVEN
MODULAR PROJECT
COST DRIVEN STICK BUILT
PROJECT
Modularization
21. 15 August 2007Bill Meyer
Schedule benefits
Schedule benefits
Modularization
22. 15 August 2007Bill Meyer
Modular
Stick Built
Schedule Comparison – Modular vs Stick Built
0
10
20
30
40
50
60
70
80
90
100
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36
Duration - Months
Progress%
Order Placement Engineering Construction
Order Placement Engineering Construction
Return
Modularization
23. 15 August 2007Bill Meyer
1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
24. 15 August 2007Bill Meyer
Module Types
1. Pre – Assembled Units (PAU’s)
Multi disciplined modules including:
- tagged and non tagged items, steel, piping, electrical,
instrumentation, fireproofing, insulation
43. 15 August 2007Bill Meyer
1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
44. 15 August 2007Bill Meyer
E & P Impacts
Planning is Critical for Modular Projects
45. 15 August 2007Bill Meyer
Differences can include
Location of pumps
PAR
02/03
PAR
04/05
PAU 01
PAU 02
PAU 03 PAU 05
VAU 02
etail above
Modular
Stick built
E & P Impacts
46. 15 August 2007Bill Meyer
Differences can include
Pipe track to pipe rack
E & P Impacts
47. 15 August 2007Bill Meyer
Differences can include
Pipe track to pipe rack
Easy Install Easy Ship
E & P Impacts
48. 15 August 2007Bill Meyer
Differences can include
Pipe track to pipe rack
Additional clearance can be provided
where required
E & P Impacts
49. 15 August 2007Bill Meyer
E & P Impacts
Piping design file layout
Link files for pipe
stressing
Split files for quantity
takeoff and procurement
50. 15 August 2007Bill Meyer
E & P Impacts
Site based Loads, Clearances and Critical Dimensions
Crane loads
Module clearances
Crane clearances
Foundations to
leave low
etc
60. 15 August 2007Bill Meyer
Logistics and therefore loads imposed is project specific
E & P Impacts
61. 15 August 2007Bill Meyer
E & P Impacts
Loads applied to Modules
Installing on site
62. 15 August 2007Bill Meyer
E & P Impacts
Loads applied to Modules
In-situ on foundations
63. 15 August 2007Bill Meyer
E & P Impacts
Procurement Complexity
Number of delivery
locations impact
ordering and material
tracking
Equipment
Deliveries
Material Logistics for the
Stick-Built Project
Install
Dock
Truck
64. 15 August 2007Bill Meyer
E & P Impacts
Procurement Complexity
Truck
Material
yard
Dock
Transport
Install
Material Logistics for the
modularized Project
Truck
Truck
Install
Module Fabrication
Yard
Equipment
Deliveries
Port
Module
Deliveries
Loadout
to ship
Bulk Materials and
minor equipment
Modules and
major equipment
65. 15 August 2007Bill Meyer
– Potential to ship stick built
materials in “dead space” on
HL ships
E & P Impacts
