Foster Wheeler announced today that its subsidiary Foster Wheeler South Africa has been awarded an engineering, procurement and construction management contract by Sasol Technology (Sastech) for a new research and development (R&D) facility associated with Sasol's Fischer-Tropsch process.

Foster Wheeler will design and manage the construction of the new plant, which will be integrated into Sasol's extensive R&D facility at Sasolburg, South Africa. The Fischer-Tropsch process is a catalysed chemical reaction in which carbon monoxide and hydrogen are converted into liquid hydrocarbons in various forms.

The Foster Wheeler contract value was not disclosed and the project will be included in the company's third-quarter 2005 bookings.

Mark Meyer, managing director of Foster Wheeler South Africa, said: \\$quot;This contract award reflects Sastech's confidence in Foster Wheeler South Africa's ability to deliver leading-edge, complex plants. This award further develops our long-term relationship with Sasol, which now encompasses refining, chemicals, gas processing and gas-to-liquids.

The basic engineering package for this new demonstration plant has been completed by Sasol. The FTDR project is scheduled for completion by the end of 2006.