A contract to upgrade Ireland's only oil refinery worth $94 million (€87 million) has been awarded to the US plant systems and engineering company Foster Wheeler Corp.

Irish Refining, a subsidiary of Irish National Petroleum Corp, announced yesterday that Foster Wheeler had been contracted to replace and modify existing equipment at the plant in Whitegate, Co Cork.

Following the upgrade, the refinery will increase production to 75,000 barrels per day of crude oil and will be able to produce petrol to new European Community specifications due to come into force in 2000. The manger of the refinery, Mr Neil O'Carroll, said this was the most substantial upgrade since the plant was built in the 1950s and he expected the work to be completed by early next year.

The Whitegate refinery supplies about 40 per cent of Ireland's petrol, diesel and heating oil.