SOURCE: Willbros Group, Inc.

Willbros Group, Inc.

February 25, 2009 21:41 ET

Willbros Announces New Project Awards

HOUSTON, TX--(Marketwire - February 25, 2009) - Willbros Group, Inc. (NYSE: WG) announced today that both its Upstream and Downstream segments have been awarded new projects, valued at approximately $181 million.

Willbros U.S. Construction has been awarded a contract to construct the Texas Independence Pipeline by Energy Transfer Fuel, L.P., a subsidiary of Energy Transfer. The project consists of 143 miles of 42-inch natural gas pipeline from Minden in Rusk County, Texas, to a point near Maypearl in Ellis County, Texas. Work is scheduled to start in March 2009 to meet a third quarter 2009 in-service date.

Additionally, Willbros' Downstream segment, InServ, has received verbal commitment from National Cooperative Refinery Association (NCRA) to extend its current contract for Program Management Services associated with portions of the planned Heavy Crude Expansion Project (HCEP) and associated major capital projects through September 30, 2011.

The NCRA projects are associated with modifications to existing process units, facilities and infrastructure to position the NCRA Refinery to process additional heavy sour crude(s) in the future. Additionally, the projects to be managed under InServ's Program Management Services contract are essential to continued operations due to current regulations, environmental permitting requirements, on-going safety improvements, and improved operational efficiency.

InServ's new commitment from NCRA is to continue completion of AFE development activities plus manage the execution of engineering, procurement and construction of the projects. InServ's Construction Service Group, Houston, Texas, is also one of two general contractors that have been issued an LOI for construction work on NCRA's projects.

The InServ Program Management Team will manage the Contracts and Purchase Orders, in the context of providing predictable project implementation and costs, and provide required services to ensure compatibility, quality, scope, best value, and schedule for the NCRA projects.

National Cooperative Refinery Association (NCRA) with corporate office and refinery in McPherson, Kansas is an interregional petroleum cooperative owned by three regional affiliated local cooperatives in the North Central United States.

Randy Harl, President and Chief Executive Officer, commented, "We are pleased to announce these two awards which demonstrate our potential market opportunities. Both Energy Transfer and NCRA are valued customers for which we have performed multiple successful projects. We appreciate their confidence in our execution abilities and look forward to completing two more important projects on their behalf."

Willbros Group, Inc. is an independent contractor serving the oil, gas, power, refining and petrochemical industries, providing engineering, construction, turnaround, maintenance, life cycle extension services and facilities development and operations 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 the potential for additional investigations; the disruptions to the global credit markets; the current global recession; the possible losses arising from the discontinuation of operations and the sale of the Nigeria assets; fines and penalties by government agencies; 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 refinery crack spread and planned refinery outages and upgrades, the effective tax rate of the different countries where the work is being conducted, development trends of the oil, gas, power, refining and petrochemical 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
    Sales & Marketing
    Willbros
    713-403-8038

    Connie Dever
    Director Strategic Planning
    Willbros
    713-403-8035