Statoil turns to US expertise to assess refinery upgrade

Statoil has selected US-based engineering, construction and project management contractor Foster Wheeler to undertake a feasibility study for the upgrade of its Mongstad Refinery in Norway, the US company has announced, as part of plans to increase diesel production at the facility.

Foster Wheeler’s scope includes performing high-level process simulations to identify the optimum technical solution for the refinery upgrade, and production of a study report and a total installed cost estimate.

The contract value was not disclosed. The study is scheduled for completion at the end of 2013.

The refinery upgrade project by Statoil aims to address crude feedstock flexibility requirements and to increase diesel production, including the production of ultra-low-sulfur diesel. The upgrade is expected to include the installation of a new vacuum distillation unit, together with new diesel hydrotreaters.

“We will apply our in-depth refining expertise and technology know-how to assist Statoilin developing a viable plan for implementing its refinery upgrade, in line with its objectives,” said Umberto della Sala, president and COO of Foster Wheeler.