Bridge & Iron
) has received an over $70 million contract from Saudi Arabia
based Petrofac Co. Ltd. The scope of the contract requires
Chicago Bridge to execute engineering, procurement and
construction (EPC) of crude oil storage tanks at a grassroots
refinery being constructed in Saudi Arabia. Grassroots refineries
are managed at local level on a smaller scale than the usual
large industrial refineries.
Petrofac has been a leading provider of oilfield services to
the international oil and gas industry for over three decades.
The company primarily provides onshore EPC services predominantly
to the oil and gas industry in the Middle East, Africa and the
Commonwealth of Independent States.
This apart, the company also provides Offshore Projects &
Operations, which includes the Offshore Capital Projects service
line, specializing in both offshore engineering and construction
services, for greenfield and brownfield oil and gas projects, and
the provision of operations and maintenance support, onshore and
Chicago Bridge has been operating in Saudi Arabia since the
1930s, primarily in the areas of ground storage tanks, elevated
storage tanks, Liquefied Natural Gas tanks, pressure vessels and
other specialty structures like nuclear containment vessels. One
of its primary clients in Saudi Arabia is Saudi Aramco (state
owned fully integrated, global petroleum and chemical
Chicago Bridge is the leader in the LNG storage niche market.
The company keeps winning contracts particularly for LNG/low
temperature storage systems (petrochemicals), an area where
Chicago Bridge is currently the leader and plans to aggressively
capture the entire market share. In addition, the company also
specializes in the waste and waste water tanks, mineral
processing storage and power applications, such as
liquefaction/vaporization and storage facilities.
Chicago Bridge currently holds a Zacks Rank #3 (Hold).
Investors interested in the engineering, oil & gas and energy
industries may consider stocks like
Quanta Services Inc
). VSE carries a Zacks Rank #1 (Strong Buy), while Quanta and ITT
have a Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
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