Jacobs Engineering Group Inc.
), a construction services provider, received a contract from
Shell Company of Australia Ltd., a subsidiary of
Royal Dutch Shell Plc.
), for Shell's Clyde Terminal Project, based in Sydney,
Australia. The contract value was not disclosed.
According to the agreement, work for the contract will be
carried on by Jacobs' operations at its units in Sydney and
Melbourne. The contract involves the conversion of the Clyde
Refinery and associated satellite Gore Bay Terminal into
competitive product import terminals. Jacobs is expected to
provide a Basic Design and Engineering Package (BDEP) for the
Subsequent to shareholders' approval in July 2011, it was
decided in June 2012 that the Clyde refinery will cease its
operations from September 2012, and will be eventually converted
into a terminal. The refinery covers around 40% of Sydney's
petroleum requirements along with 50% of New South Wales'
The Clyde Terminal is currently used to provide services to
the Sydney airport while helping Shell to distribute its fuels to
the New South Wales market. Subsequent to regulatory approvals,
Jacobs will also be needed to provide Engineering, Procurement
and Construction Management (EPCm) services to the project.
Prior to this contract, Jacobs was involved in bringing about
clean fuel upgrades for another project for Shell Australia, at
the Shell Geelong and Clyde refineries. Jacobs' association with
Shell is not confined to Australia alone. In August last year,
the company received a contract from Shell Global Solutions
International B.V., Shell's European subsidiary, to provide
engineering and project management services to its European
downstream assets, over a term of five years.
Jacobs currently holds a Zacks Rank #3 (Hold). Other stocks
worth a look in the services industry are
AECOM Technology Corporation
); both holding a Zacks Rank #2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis
TYCO INTL LTD (TYC): Free Stock Analysis
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