SOURCE: Willbros Group, Inc.

October 25, 2007 17:56 ET

Willbros Announces New Contract Awards

HOUSTON, TX--(Marketwire - October 25, 2007) - Willbros Group, Inc. (NYSE: WG) announced today that its Construction and EPC segments have been awarded new projects for work in Canada and the United States. The aggregate value of these contracts, which have components which are not yet fully defined, is expected to total approximately $170 million.

Willbros Canada has been awarded a contract for the construction of two sections of natural gas pipeline looping sections west of Fort McMurray for TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TransCanada). The two continuous segments, which total 115 kilometers of 36-inch pipeline, will include the installation of pre-fabricated valve assemblies and horizontal directional drilling of three significant water crossings. The projected start date for the project is November 2007, with final project clean-up scheduled for the 2008-2009 winter work session.

Also in Canada, Willbros has been awarded a contract to construct and install the Pipeline Alley tie-in connections for Kinder Morgan. In the other areas of Willbros Construction, the Company has been awarded two U.S. contracts for station related projects by Cheniere LNG and Kinder Morgan.

Additionally, Willbros EPC was awarded a contract for a new pump station and the modification of four existing stations to support the expansion of Marathon Oil Company's (NYSE: MRO) Garyville, La. refinery. Construction on this associated pipeline portion of the Garyville Major Expansion is expected to begin in November 2007, with completion in first quarter 2009.

Randy Harl, President and Chief Executive Officer of Willbros, commented, "We are pleased with securing our first cross-country pipeline project for our MidWest acquisition in Canada and remain confident that demand in the Canadian pipeline market will increase significantly in the next 12-18 months. Additionally, our success in winning two construction-only station related projects and our first EPC station related project further substantiates our strategy to grow our U.S. construction backlog in areas other than pipelines."

Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries, providing engineering, construction and engineering, procurement and construction (EPC) services to industry and government entities worldwide. For more information on Willbros, please visit our web site at www.willbros.com.

This announcement contains forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward-looking statements. A number of risks and uncertainties could cause actual results to differ materially from these statements, including those discussed above and such things as the possible losses arising from the discontinuation of operations and the sale of the Nigeria assets; fines and penalties by government agencies; the outcome of the current Securities and Exchange Commission and Department of Justice investigations; the potential for additional investigations; the identification of one or more other issues that require restatement of one or more prior period financial statements; the existence of material weaknesses in internal controls over financial reporting; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; ability to remain in compliance with, or obtain waivers under, the Company's loan agreements and indentures; the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures; oil, gas, gas liquids and power prices and demand; the amount and location of planned pipelines; the effective tax rates of the different countries where the work is being conducted; development trends of the oil, gas and power industries; changes in the political and economic environment of the countries in which the Company has operations; as well as other risk factors described from time to time in the Company's documents and reports filed with the SEC. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • CONTACT:

    Michael W. Collier
    Vice President
    Investor Relations
    Willbros USA, Inc.
    (713) 403-8016

    Connie Dever
    Director
    Strategic Planning
    Willbros USA, Inc.
    (713) 403-8035