Fluor 2008 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2008 Fluor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 127

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

Fluor Corporation 2008 Annual Report
Oil & Gas
Delivering Everyday Essentials
The end products made possible by our Oil & Gas
group are an integral part of our daily activities and
help to enhance the quality of modern life. From
transportation fuels to heating food on the stove,
our upstream and downstream operations support
the extraction, processing and delivery of oil and
natural gas for use by industry and consumers. Our
chemicals business line is even more diverse, playing
a key role in the production of such products as
carpet fibers, clothes, fertilizers, adhesives and all
things plastic — including life-saving heart valves.
All around the world, Fluor builds the production
facilities, pipelines, refineries and petrochemical plants
that fuel the growth of communities and industries.
And in 2008, Oil & Gas saw tremendous growth
driven by strong global demand for our services.
Another Record Year
Oil & Gas backlog grew to a record $21.4 billion, up 15
percent over 2007. We experienced successful project
completions and start-ups in all business lines in 2008.
Notable completions included the Tengiz Chevroil
(TCO) upstream production project in Kazakhstan, the
Dow/Petrochemical Industries Company (PIC) Olefi ns
II complex in Kuwait and the BG Poinsettia offshore
drilling and gas production platform off the coast of
Trinidad and Tobago. Start-ups included the Yansab
petrochemical complex in Saudi Arabia for Saudi Basic
Industries Corporation (SABIC) and start-up work on
a solar-grade silicon production factory for Renewable
Energy Corporation (REC) in the state of Washington.
We fine-tuned our global operations to take advantage of
emerging opportunities in the industry, opening offi ces
in Singapore and Alaska, expanding our operations in
Russia and Argentina, and relaunching Fluor Offshore
Solutions to take advantage of renewed interest in
offshore production. In today’s ever-changing economy,
Fluor is everywhere our customers need us to be.
Notable New Awards
Downstream awards were robust in 2008, led by a
$3.4 billion contract with BP America for its Whiting
Refinery modernization project — the largest private
investment in Indiana history. We also secured a $1.9
billion award for Total’s deep conversion refi nery
upgrade project in Port Arthur, Texas. This contract
follows the completion of Fluor’s front-end engineering
and design (FEED) work at the refi nery. Upon
completion, the upgrade will raise total output to 12
million tons per year, including an additional 3 million
tons per year of ultra-low sulfur automotive diesel.
Other notable downstream awards included multiple
refinery expansion contracts in the U.S. and Europe
including an award for the Taneco Nizhnekamsk
refinery in Tatarstan, a $300 million award for
expansion of the ConocoPhillips Wood River
Refinery in Illinois and a $400 million expansion
contract for the Porto Refinery in Portugal.
Key upstream awards for 2008 included several
large production projects including a $500
million award for the Exxon Neftegas Odoptu
production project in Sakhalin Island and a $300
million consultancy-services contract for Kuwait
Oil Company. We also won an LNG terminal
in Spain for Enagas worth $320 million.
In our petrochemical business, new Chinese projects
led the way in 2008, starting with a $1 billion project by
LDK Solar in China for the world’s largest polysilicon
production facility. This award follows FEED work
12