Fluor Wins $1.9B Contract From Total AP Monday March 10, 2008 1:47 pm ET Fluor Receives $1.9B Contract From French Energy Company Total for Work at Texas Refinery
IRVING, Texas (AP) — Fluor Corp. said Monday it was awarded a $1.9 billion contract by French integrated oil and gas company Total SA for engineering, procurement and construction services at its Port Arthur, Texas, refinery.
The full value of the contract will be booked in the first quarter of 2008, Fluor said. The new contract follows the completion of Fluor’s front-end engineering and design work at the Port Arthur refinery. Fluor’s work under the new contract will include building a coker, a desulfurization unit, a vacuum distillation unit and other related infrastructure. The refinery will convert heavy and process sour crude when commissioned in 2011. Fluor said the new units will raise the refinery’s total output of all products to about 12 million tons per year.
Fluor expects that up to 2,200 craft workers will be employed on the project, with the completion of the coker scheduled for 2011. Fluor shares fell $4.20, or 3 percent, to $134.31 in afternoon trading. The stock has traded between $86.86 and $172.15 during the past 52 weeks.
Oil prices surged as high as $107 on Monday, stoking investors’ fears that demand for crude could slow if the U.S. slips into recession.