Fluor Corporation has been awarded an engineering, procurement, and construction (EPC) contract for Galp Energia's Porto Refinery Conversion project in Portugal. The project, with an expected total cost of €350 million, will increase production and utilization while processing heavier crude oil. Fluor's multi-office execution approach will be led by its Camberley, UK, execution center, with assistance from professionals in its Madrid office. The project is expected to be completed in the fourth quarter of 2010. Fluor has previously worked with Galp Energia on a naphtha hydrodesulfurization unit in 2002.
IRVING, Texas – Fluor Corporation (NYSE: FLR) announced today that it has been awarded an engineering, procurement and construction (EPC) contract for Galp Energia’s Porto Refinery Conversion project in Portugal. Fluor began the front-end engineering and design (FEED) work in October 2007, which included conceptual engineering, front-end loading and early procurement of key equipment. The total installed cost of the project is expected to be about 350 million euros (about US$455 million) of which Fluor booked US$400 million in the fourth quarter 2008.
“Our ongoing project work for Galp Energia confirms Fluor as a leading contractor in the Southern European refinery market,” said David Seaton, president, Fluor’s Energy & Chemicals Group. “We fully expect to assist our client in meeting its business goals and operational agenda of increasing production and utilization while processing increasingly heavier and more sour crude oil.”
“Our up-front project work in the FEED stage has led us to the EPC stage of this important refinery conversion project,” said David Zelinski, senior vice president, Fluor’s Energy & Chemicals Group. “We expect to integrate our regional knowledge and expertise by teaming with local Portuguese contractors.”
The Porto Refinery Conversion Project, when completed, is expected to produce 2.5 million tons per year of diesel, gasoline and kerosene fuels. The completed refinery will meet the most up-to-date European environmental regulations, will increase the utilization rate of the existing refineries and will be capable of processing heavier crude oil.
Fluor’s proven multi-office execution approach is being led by its Camberley, UK, execution center with significant assistance from professionals in its Madrid office. Project completion is expected sometime in the fourth quarter of 2010. Fluor previously built a naphtha hydrodesulfurization unit for Galp Energia in 2002.