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FLUOR CORPORATION 2005 ANNUAL REPORT
Africa, managing Sasol’s major clean fuels initiative. In Canada, the company has a leading role in
the current wave of investment in oil sands, with work progressing on two major crude oil upgrader
projects. Looking ahead, the market for future oil sands projects are expected to further expand
with billions of dollars of additional investment anticipated over the next several years.
Significant downstream project awards received during 2005 included a contract to provide
detailed engineering, procurement and construction management services of upgrader process
units for a major oil sands project in Canada. On the refining side, Fluor was selected to provide the
Front-End Engineering and Design (FEED) services for a pro-
posed $2.2 billion expansion at Marathon’s Garyville, Louisiana
refinery. The company received numerous awards for refinery
modifications in the United States, Canada, Mexico, South
Africa, Europe and the Caribbean.
The market for petrochemicals expanded considerably
during 2005, with a significant upturn in capital spending
focused on increasing ethylene production capacity. The majority
of projects in development are located in the Middle East, close
to low-cost gas feedstock, or in China where the demand for
chemical products is the greatest. Both regions represent areas
of significant strength and experience for Fluor. During the year,
the company completed two major integrated petrochemical
projects in China, and a number of petrochemical projects in
the Middle East that were in the preliminary stages a year ago
have progressed, with Fluor’s scope moving from front-end
engineering to full program management responsibility.
Major new awards in 2005 included engineering,
procurement and construction management of the utilities
and infrastructure portion of an olefins complex for Dow/
Petrochemical Industries Company in Kuwait, offsites and
utilities for a major ethylene complex for SABIC Industries in
Saudi Arabia, and front-end engineering, design and project
management consultancy services for a large petrochemical
development for a client consortium in Saudi Arabia. Fluor
also received chemicals awards in Europe, Oman, the U.S.
and Mexico.
Fluor continues to perform a substantial amount of FEED,
which could lead to substantial follow-on awards, indicating a
strong pipeline of new project opportunities for Oil & Gas in 2006.
Fluor served as the program
management contractor for a major
olefins-based petrochemical project
in Saudi Arabia. Fluor managed
the interface between the various
process unit contractors and had
complete engineering, procurement
and construction management
responsibilities for the utilities
and offsites.
Fluor is the managing contractor
for Shell’s Ultra Low Sulphur
Diesel Project, which reduces the
sulphur content in their diesel fuel.
The project consists of two grass-
roots diesel hydtrotreater units at
Shell’s Montreal East refinery
and Shell’s Scotford refinery in
Fort Saskatchewan, Canada.
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