Fluor Daniel Selected as Member of Project Millennium Alliance to Expand Suncor Energy`s Project in Canada

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Tuesday, May 18, 1999

Fluor Daniel and Fluor Constructors Canada Ltd. Tuesday announced their participation in a project alliance for the expansion of Suncor Energy Inc.'s oil sands facilities at Fort McMurray, Alberta.

Total installed cost of the expansion exceeds US$1.5 billion; the contract value totals just more than US$300 million and was booked in its first quarter.

"In the past 30 years, Suncor Energy has proven to be a leader in the oil sands development industry, all the while ensuring environmental preservation," said Suncor Energy President and Chief Executive Officer Rick George. "Working with world-class alliance partners will enable us to maximize the value of this project to meet growing market needs for our products."

To support Suncor Energy's Project Millennium — a significant expansion of its synthetic crude oil capacity — Fluor Daniel will perform engineering and procurement services to expand the Energy Services facilities. Fluor Constructors Canada Ltd. and Bechtel Canada Co. will perform construction management and construction services for the entire project. When complete in January 2002, the project will increase synthetic crude oil production from 120,000 to 210,000 barrels per day. Work is currently under way in Fluor Daniel Canada's Calgary office.

"Having helped complete a flue gas desulfurization project on the same site in 1996, we are pleased that Suncor Energy has again selected us to participate in the Millennium Project," said Rick Robinson, vice president and general manager, Fluor Constructors Canada. "Oil sands development plays a key role in today's economy and is vital to meet current demands for crude oil products."

Members of the Millennium Alliance have been collaborating on engineering work and the development of schedules and cost estimates for Project Millennium since 1997. Aside from the aforementioned alliance team members, Bantrel Inc. and SNC-Lavalin Engineers & Constructors also are participating on the project.

Suncor Energy Inc. is a Canadian integrated oil and gas company engaged in exploration, production, refining and marketing of oil and gas and other energy products. Suncor Energy's Oil Sands division produces and markets custom-blended refinery feedstocks and transportation fuels.


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