Fluor & AMEC form JV for Iraqi Oil Reconstruction

Fluor Corporation has formed Fluor/AMEC, a joint venture with AMEC to undertake contracts to rebuild Iraq's oil industry. The U.S. Army Corps of Engineers is soon expected to ask for bids to refurbish Iraq's petroleum operations.

The joint venture brings together the resources of two of the largest diversified engineering services companies in the United States and Britain respectively. Fluor will own 51 percent of the joint venture; AMEC will own 49 percent.

"The joint venture integrates the expertise of two organizations with considerable history in Middle East oil fields," said Alan Boeckmann, Fluor chairman and chief executive officer. "It offers a comprehensive set of skills, resources and experience, including upgrading, refurbishment, overhauls and the re-instatement of complex capital assets--all critical to quickly restoring Iraq's oil production capacity."

"Fluor and AMEC have together 100 years experience of operating in the Middle East and have a great deal of Iraqi knowledge," said Sir Peter Mason, AMEC chief executive. "This joint venture will be able to benefit from the strong relationships that each parent company has with all the major multinational and national oil companies in the region, as well as substantial logistics and supply-chain capability with local/area contractors working in the Middle East."

Boeckmann and Mason said that, should the joint venture win the Corps' rebuilding contract, they would expect to employ a significant percentage of Iraqis. They added that the revitalization of Iraq's petroleum operations will require the training of many non-oil field personnel for long-term careers in the industry.