Fluor Wins Sakahlin-1 Engineering Contract

Fluor Corporation has been chosen to provide engineering and procurement services for a major oil and gas processing facility on Russia's Sakhalin Island. The value of the contract to Fluor is in excess of $80 million. The contract was awarded by Exxon Neftegas Limited, operator of the Sakhalin-1 Consortium, an international group of companies developing three oil and gas fields (Chayvo, Odoptu and Arkutun-Dagi) off the northeast coast of Sakhalin Island in the Russian Far East. Work will start immediately and be executed in multiple offices around the world.

Last summer, Exxon Neftegas Limited selected Fluor for a separate contract to provide construction management services for the project. The scope of work under this management contract is valued at more than $500 million. Under this contract, 80 percent of which will be subcontracted, Fluor will manage several large Russian construction companies to install an onshore oil and gas processing facility and well-pad infrastructure near the Chayvo field. In full production, the processing facility is planned to treat 250,000 barrels of crude oil per day. Gas will be made available for domestic sales in the Russian Far East. Gas not sold will be re-injected into the fields at a rate of up to 700 million cubic feet per day.

"We are extremely pleased to have been asked to participate in this important project. Its logistical challenges are a good fit with Fluor's experience working on complex projects in remote locations around the world," said Jeff Faulk, group president of Fluor's Oil, Gas & Power group. "It's also an opportunity for us to expand our portfolio of work in this region with several Russian design institutes, which will be subcontractors in performing portions of the work," Faulk said.