Fluor 2013 Annual Report Download - page 14

DOWNSTREAM
The rapid rise in upstream activity has a
predictable effect on downstream markets.
Investments are steadily increasing for new
refineries and refinery upgrades, and Fluor
is reaping the benefits in North America,
Asia, the Middle East and beyond. We
were awarded a large upgrader project for
North West Redwater in Canada. In 2013,
we completed two FEED projects for new
refineries in Mexico. We won two new clean-
fuels FEED projects in South Africa and one
in Kuwait. Finally, we secured the project
management consultancy work on a new
grassroots refinery and petrochemical
complex in Malaysia.
CHEMICALS
Abundant gas and petrochemical activity
go hand-in-hand, giving rise to major new
plant investments. Our group is capturing
this work. In 2013, our partnerships with
BASF and Dow Chemical continued to pay
dividends. BASF awarded Fluor an EPCM
contract for a petrochemical complex
in Germany. Dow has contracted with
Fluor to execute a large portion of its
Gulfstream project in Texas, including a
new ethane cracker—in addition to the
propane dehydrogenation project that was
awarded in late 2012. Chevron Phillips
Chemical awarded Fluor the EPC contract
on a major ethane cracker unit on the Texas
Gulf Coast. In addition, we were awarded the
FEED work for Sasol’s world-scale ethane
cracker and downstream derivatives facility
in Louisiana, which, when built, will be the
largest manufacturing investment in the
history of the state.
We also have a strong résumé of building
petrochemical facilities in the Middle East
and China, proving to our clients that they
can trust us to deliver anywhere in the world.
We further boost their confidence because
we are particularly well-equipped to staff and
execute projects right here in our backyard.
In 2013, we also won new petrochemical work
in Saudi Arabia, Qatar, China, Malaysia, Mexico
and Canada.
OFFSHORE
We continue to leverage our strong partnerships
to gain opportunities offshore. Through our
ICA Fluor joint venture in Mexico, we are
building an offshore production platform for
Pemex in our fabrication yard in Tampico. We
also continue to provide services on the Hebron
topsides program in Canada for ExxonMobil
and the Shell Malampaya project in the
Phillipines. Other offshore projects are being
performed in Trinidad and Tobago, Abu Dhabi
and Thailand.
THE BLUEPRINT
For at least the next two decades, we expect
gas to be an outsized component of the fossil
fuels investment portfolio. Gas monetization
projects will dominate the industry, and we
are positioning Fluor to take full advantage.
We are establishing our capability and
credibility in LNG and building a presence
in growing international markets. We
have over 5,000 people in China, India and
the Philippines who are moving toward
winning full EPC/EPCM work of their own.
Clients are increasingly demanding local
content on their projects, and we are growing
our capabilities within each office to capture
this business.
Fluor is one of the few companies that can
deliver a truly integrated solution to fully
execute projects—engineering, supply chain,
fabrication, modularization, construction
and a reliable workforce to achieve our clients’
plans. Projects worldwide are increasingly bid
on a lump-sum basis, and our ability to integrate
a full solution allows us to pursue more of
these opportunities.
As a leader in the industry, the Oil & Gas group
is structured for substantial market growth.
Looking ahead, we believe that our clients will
continue to value our ability to design, build
and integrate large, complex projects. Our
blueprint is sound, our business is moving
forward, and our outlook is very strong.
OIL & GAS CONTINUED