) had two good news to cheer about recently as its Fluor ICA (a
joint venture between Fluor and Empresas ICA, S.A.B. de C.V) and
its unit Fluor Federal Petroleum Operations, LLC won two
contracts. While Fluor ICA won a contract from Pemex, the unit
got a contract from U.S. Department of Energy (DOE).
Coming to the contract from Pemex, ICA Fluor won the
$54-million contract to to build a gas compression system in
Mexico. This contact will be booked in the third quarter of 2013.
It primarily requires Fluor ICA to construct a gas compression
system to service the Dos Bocas Marine Terminal located in
Paraiso, Tabasco, on the Gulf of Mexico. The project is expected
to be completed in the second quarter of 2015.
ICA Fluor is a leading industrial engineering-construction
company in Mexico, committed to the engineering, procurement,
construction and maintenance of industrial facilities in the oil
and gas, chemical, petrochemical, automotive, power, mining, and
Fluor ICA will be responsible for the engineering,
procurement, construction and start-up services for the
electromechanical works. Fluor will also be responsible for
building the new system to connect a 77-kilometer, 36- inch
diameter pipeline to transport gas and crude oil from the Litoral
offshore platform to the processing facilities in the marine
As for Fluor Federal Petroleum Operations, the U.S. Department
of Energy (DOE) awarded it a contract for the management and
operation of the Strategic Petroleum Reserve (SPR) in Louisiana
and Texas. This contract has a base term of five years, but the
DOE has the option of extending the contract up to 10 years. The
base contract is valued at about $697 million.
The SPR is the largest supply of emergency crude oil. The
decision to withdraw crude oil from the SPR is made by the U.S.
President. During an energy emergency, SPR oil is distributed by
competitive sale. To date, the SPR has been used only three
times, most recently in Jun 2011 when the President directed a
sale of 30 million barrels of crude oil to offset disruptions in
supply due to Middle East unrest.
Fluor Corporation has a strong presence and brand name in
executing front-end engineering and design (FEED) contracts and
the Engineering, procurement and construction (EPC) contracts in
large petrochemical and petroleum companies.
Fluor currently carries a Zacks Rank #3 (Hold). Stocks in the
same sector that are worth a look include
Michael Baker Corp.
Meritage Homes Corporation
). While Lennox and Micheal Baker have a Zacks Rank #1 (Strong
Buy), Meritage carries a Zacks Rank #2 (Buy).
BAKER (MICHAEL) (BKR): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
LENNOX INTL INC (LII): Free Stock Analysis
MERITAGE HOMES (MTH): Free Stock Analysis
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