SOURCE: Willbros Group, Inc.

July 10, 2007 16:31 ET

Willbros Announces New Contract Awards

HOUSTON, TX--(Marketwire - July 10, 2007) - Willbros Group, Inc. (NYSE: WG) announced today that both its Engineering and Construction units have been awarded new projects for work in the United States and Canada.

Willbros U.S. Construction has been awarded an installation contract for the construction of three segments of the Midcontinent Express Pipeline by Midcontinent Express Pipeline LLC, a joint venture between Kinder Morgan Energy Partners and Energy Transfer Partners. The three segments will traverse Oklahoma and Texas and are comprised of approximately 257 miles of 42-inch pipeline. The projected start date for the project is third quarter 2008.

Also in the United States, Willbros Engineering has been awarded contracts for front end engineering by Colonial Pipeline and additional capital project engineering activities for BP Pipelines (North America) Inc.

In Canada, Willbros has been awarded a construction contract by Suncor for pipeline and civil works associated with the Steepbank Extraction Plant (SEP). SEP is a new extraction facility to allow for the mining of a new area of the Suncor lease in the Fort McMurray region. The award includes interconnecting pipelines, ranging from 4-inch to 42-inch diameter, to the new extraction facility. The project is scheduled to begin in July 2007.

The aggregate value of these contracts, which have components which are not yet fully defined, is expected to range from $350-400 million.

Randy Harl, President and Chief Executive Officer of Willbros, commented, "These new contracts, which enable us to continue the build of quality backlog in North America, are more evidence of the improving visibility we have into 2008 and 2009. Our Engineering activity remains resource constrained, but we are expecting our new presence in Kansas City to enable us to meet our customers' expectations. We have always viewed the level of engineering activity as a precursor to construction activity and we believe current levels augur well for our business. We will continue to investigate markets in North Africa and the Middle East, where we expect to see an increase in the amount of pipeline infrastructure build out in the next 12-18 months."

Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries, providing engineering and construction 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, Office of Foreign Assets Control 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