Fluor Awarded Ultra Low Sulfur Diesel Project by Shell Canada Limited to Meet Governmental Regulations

abarrelfullabarrelfull wrote on 18 Oct 2013 18:47

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3rd May 2004

Fluor Corporation (NYSE: FLR) announced today that it has been selected by Shell Canada Limited (Shell) to help it meet Canadian government regulations for ultra low sulfur diesel. Shell is investing approximately $300 million in the project, and the value to Fluor is estimated to be $244 million, an amount booked in the company's first quarter.

Under terms of the contract, Fluor will design and construct new diesel hydrotreater units at two Shell refineries: Scotford Refinery near Edmonton, Alberta, and Montreal East Refinery in Quebec. Fluor also will manage the co-ordination of local contractors' activities at each site (Colt Engineering at Scotford and BPR-Bechtel in Montreal). Fluor's role is to provide detailed design for the related offsites and interconnects associated with the existing facilities.

"This award allows Shell to provide ultra low sulfur diesel fuel for on- road vehicles ahead of government regulations," said Jeff Faulk, Fluor's group president of Oil, Gas & Power. "We are pleased to have been selected for this important project and to continue our strong relationship with Shell."

Fluor has completed the front-end engineering and design work and is moving forward with engineering, construction, procurement and construction management. Work will be executed from Fluor's offices in Calgary, Canada, and New Delhi, India, with support from project staff at the two sites. The project is scheduled for completion in early 2006, ahead of the government's June 1, 2006, requirement.

Fluor has previously performed work for Shell on the Scotford Upgrader and the modifications to the Scotford Refinery associated with the company's Athabasca Oil Sands Project. As well, Fluor worked with Shell in Montreal on the Total Isomerization Project.

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