Engineering and construction giant Fluor Corporation (NYSE: FLR) today
announced that it has been selected to provide front-end engineering and
design (FEED) services for a $2 billion expansion project for Husky
Energy Inc., a leading integrated energy and energy-related company
headquartered in Calgary.
Fluor's FEED work is necessary for Husky to proceed with plans to double
the capacity of its heavy oil upgrader -- located in Lloydminster,
Saskatchewan, Canada -- from approximately 80,000 barrels per day to a
potential capacity of 150,000 barrels per day. According to officials,
the expansion will prepare Husky to process the forecasted growth from
its heavy oil operations in the Lloydminster area and from its Tucker
Oil Sands Project in Cold Lake, Alberta. The facility processes heavy
oil into high quality, low sulphur synthetic crude oil to be used as
feedstock for refineries in Canada and the United States.
"The expansion is a key part of Husky's continuous strategic investment
and leverages our existing upgrader and pipeline infrastructure in the
Lloydminster region," said John C.S. Lau, Husky's president and CEO. "We
choose Fluor to perform the FEED work on this project because we feel
that they will help us reach our goals of strengthening our integrated
status and enhancing our shareholders value."
The contact's value to Fluor is $88 million and was booked in the
company's first quarter. Work will be led by Fluor's office in Calgary
and is expected to be completed in 2007, at which time Husky will
proceed with project approvals and, then, construction.
"Fluor is eager to support Husky on this important mega-project," said
Jeff Faulk, Fluor's group president of Energy & Chemicals. "We have been
involved in various small studies at the Husky Lloydminster Upgrader
over the past several years and we look forward to using our expertise
to make the dream of expansion a reality for Husky."
The proposed expansion will bring Husky's Lloydminster area processing
capacity to 175,000 barrels per day including 25,000 barrels per day
from its asphalt refinery. Upon completion of the expansion, Husky's
anticipated heavy oil production combined with the volumes from the
Tucker Oil Sands Project makes Husky a fully integrated oil producer.
Fluor Corporation provides services on a global basis in the fields of
engineering, procurement, construction, operations, maintenance and
project management. Now headquartered in Irving, Texas, Fluor is a
FORTUNE 500 company with revenues of $13.2 billion in 2005. For more
information, visit http://www.fluor.com.
Keith Stephens / Steve Roth
Media Relations
469.398.7624 /
469.398.7623 tel
Ken Lockwood / Jason Landkamer
Investor Relations
469.398.7220
/ 469.398.7222 tel
media, Keith Stephens, +1-469-398-7624, or Steve Roth,+1-469-398-7623, or investors, Ken Lockwood, +1-469-398-7220, or JasonLandkamer, +1-469-398-7222, all of Fluor Corporation//Web site: http://www.fluor.com /