) recently announced that its joint venture (JV) with Daewoo
Engineering & Construction and Hyundai Heavy Industries has
received a contract from Kuwait National Petroleum Co. (KNPC).
This JV won the bidding process for designing and constructing
the Mina Abdullah Package 2 project, an upcoming Clean Fuel
refinery in the Middle East region.
As per the deal, Fluor is to provide complete services package
that includes engineering, procurement, construction (EPC)
services. The package also comprises post-construction services
like commissioning, initializing and testing support. The
synergies of the deal will be recorded in Fluor's first-quarter
Kuwait National Petroleum is planning to expand the production
capacity of the Mina Abdulla and Mina Al-Ahmadi refineries to as
much as 800 thousand barrels per day. The increased production of
eco-friendly fuel is expected to meet the growing demand for
low-sulfur containing transport fuel. The refineries will be
equipped so as to keep the sulfur content to as low as 1%.
The $12 billion bid for the two refineries was approved on Feb
10, out of which Fluor received the contract for $3.4 billion
(962 million dinars). The other winning companies are
Foster Wheeler AG
), JGC Corporation and Petrofac.
Acting through its subsidiaries, Fluor Corporation is one of
the major professional services firms, which provides
engineering, procurement as well as construction and maintenance
services, along with project management services worldwide. The
company's expertise and resources in these arenas will help in
the execution of the project.
Fluor currently has a Zacks Rank #2 (Buy). Other players in
the engineering and heavy industry, which look attractive at
current levels, include
AECOM Technology Corp.
Quanta Services, Inc.
). Both these have the same Zacks Rank as Fluor.
AECOM TECH CORP (ACM): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
FOSTER WHELR AG (FWLT): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
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