Fluor, Shell Kick Off Malampaya Project

- Fluor, Shell Kick Off Malampaya Project

Tuesday, August 30, 2011
Fluor Corporation

Fluor Corporation on Aug. 29 announced today that its Fluor Offshore Solutions unit recently participated in the project kickoff and ceremonial contract signing in Batangas City for the Malampaya next phase development. The Malampaya Deepwater Gas-to-Power project for the Philippine Department of Energy (DOE) (operated by Shell Philippines Exploration on behalf of Service Contract [SC] 38 joint venture partners—Chevron Malampaya and Philippine National Oil Company) is among the most significant in the Philippines because it currently generates up to 40 percent of the power for the main island of Luzon. In addition to DOE, SC38 and Fluor senior executives, Philippine President Benigno Aquino III participated in the event.

“Our depth of talented and skilled project and technical staff in the Philippines developed over the past 20-plus years fits well with Shell’s needs on this project,” said Lee Richardson, vice president of Fluor Offshore Solutions. “Fluor is focused on utilizing local craft and professional labor, and we are pleased to have been selected to work with Shell and their partners on this important project.”

“Fluor is eager to undertake this groundbreaking energy project that will be the first to be designed, engineered, procured, fabricated and installed in the Philippines by local contractors,” said Dan Spinks, general manager of Fluor’s Philippines operations center.

The Malampaya project is in its third phase and encompasses the new installation of a depletion compression platform that is linked by a bridge to the existing shallow water platform. Fluor is responsible for the topsides and substructure. The project is under way with expected completion in late 2015.

Fluor previously provided ongoing engineering services for the existing shallow water platform from 2000 to 2006, and more recently, conducted a hazard and operability (HAZOP) analysis for Shell.

Fluor Offshore Solutions also recently completed offshore projects in the East Timor Sea and off the northeast coast of China.

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Fluor Lands Caspian Pipeline Expansion Contract

- Fluor Lands Caspian Pipeline Expansion Contract

Wednesday, August 17, 2011
Fluor Corp.

Fluor has been awarded a contract by Chevron Neftegaz—one of three project managers engaged by the Caspian Pipeline Consortium—for its recently announced expansion project. Fluor will provide project services for the marine terminal and supervisory control and data system (SCADA) portions of the Caspian Pipeline Expansion project. The pipeline begins in western Kazakhstan and runs 1,510 kilometers west to the terminal in Novorossiysk, Russia, on the Black Sea. Fluor booked $100 million into backlog in the second quarter.

"This pipeline expansion is a vital first step to pave the way for numerous additional crude oil production expansion projects in the region," said Peter Oosterveer, president of Fluor's Energy & Chemicals Group. "As the original program management contractor for the first phase of the Caspian Pipeline project—which involved refurbishing more than 700 kilometers of pipeline and building an additional 740 kilometers—we're pleased in the confidence the client consortium has again placed in us. This expansion of the Caspian pipeline and terminal to increase oil transportation capacity is crucial to Russia, Kazakhstan and European economic stability and to meet energy demand."

As the project services contractor, Fluor is providing oversight assistance for the deepwater marine terminal expansion in Novorossiysk as well as the SCADA system for the entire pipeline. The project is scheduled to be completed at the end of 2014.

Fluor completed the first phase of this pipeline project with the first crude oil loaded onto a tanker at the marine terminal in October 2001.

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Fluor Bags EPCM Services Contract for Woodside's AU Gas Assets

- Fluor Bags EPCM Services Contract for Woodside's AU Gas Assets

Tuesday, June 28, 2011
Fluor Corp.

Fluor has finalized a major services agreement with Woodside Energy Limited to provide engineering, procurement and construction management (EPCM) services for Woodside's operating assets. Fluor's initial contract term is for three years, with the option of three one-year extensions available. The undisclosed value will be booked in the second quarter of 2011.

The contract allows Fluor to perform sustaining capital projects for Woodside's Production Projects Group. The EPCM scope of services includes all activities that may be undertaken throughout the project life cycle. The engineering services will be performed in Fluor's Perth, Australia, office with implementation and construction related work at the respective Woodside asset.

"Fluor looks forward to delivering engineering and support services to the rapidly growing liquefied natural gas industry," said Kirk Grimes, president of Fluor's Global Services Group. "This opportunity allows us to expand our range of services to Woodside, for whom we are currently providing engineering and design services at the Browse Basin off the coast of Australia."

"This is the culmination of a relationship-building process our account team began with Woodside two years ago," said Bill Wasilewski, vice president of Fluor's Global Services Group. "The agreement enables us to leverage the expertise of Fluor's oil and gas business with our ongoing operations and maintenance services expertise."

Through its Fluor Offshore Solutions unit, Fluor is currently providing front-end engineering and design (FEED) to Woodside for the Browse LNG Development, which is located about 425 kilometers north of Broome off the northwest coast of Australia.

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