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Zwara Oil Refinery Co. Ltd. (Zorco) is a step closer to the construction phase of a new fuel oil producing refinery at Mellita, near Zwara in Libya, following the selection of Foster Wheeler Italiana SPA to carry out consultancy and project management services for the new facility.

Foster Wheeler's scope under the contract will include the optimization of the refinery's configuration, the selection of the licensors and the front-end engineering and design, including preparation of a cost estimate.

Foster Wheeler will also prepare the tender documents for the engineering, procurement, and construction (EPC)phase, and will assist Zorco in selecting the EPC contractor, and will serve as project management consultant during the EPC phase.

The planned new facility, with an estimated total investment cost of about $4 billion, includes a state-of-the-art facility aimed at producing fuel oil, premium quality gasoline, jet fuel and diesel, and related utilities, offsites and marine facilities.

"We are indeed extremely pleased to be awarded this prestigious contract by ZORCO," said Marco Moresco, Chief Executive Officer, Foster Wheeler Italiana.

"We have strong roots in Libya and we look forward to leveraging our in-depth refinery expertise to build on the excellent working relationships established in the past." "This is a flagship project in North Africa requiring deep technical knowledge, experience and flexibility," said Dr. Ali Shamekh, Chairman, ZORCO Ltd.

"We are very pleased to award the contract to Foster Wheeler Italiana and we will join forces for the successful implementation of the Project," he added.