Fluor lands $2.2-billion Saudi contract

London – Fluor Corp. is to provide engineering, procurement services and construction management for the utilities and offsite (U&O) facilities for Saudi Kayan’s petrochemical complex in Al-Jubail, Kingdom of Saudi Arabia. The $2.2 billion project was booked in third quarter 2006, Fluor announced 29 Nov.

The contract follows Fluor’s selection in mid-2005 to provide front-end engineering and design and project management consultancy services for the complex. The project is a joint venture between Saudi Basic Industries Corp. and Al-Kayan.

Engineering on the U&O facilities began in July 2006 and will continue through 2008, while construction will start next February for completion by late 2009. The project will employ 1000 engineering workers and 12,000 construction works and involve Fluor offices in Camberley, UK; Houston, Texas; Manila, Philippines; and Saudi Arabia.

The project will employ 17 licensed technologies and produce both speciality amine derivatives and polycarbonates for the first time in Saudi Arabia, said Jeff Faulk, Fluor’s group president for energy and chemicals. “The execution of the U&O facilities will be instrumental to the overall success of the project,” he said.

“Fluor has shown its capabilities on this project by performing the front end engineering and design, and now we will move forward with the Fluor team for engineering, procurement services and construction management of the facilities,” said Abdullah Al-Rabeeah, Saudi Kayan president. “This petrochemical complex is vital to Saudi Arabia, and Fluor brings the best experience available to the programme.”

Once completed, the Saudi Kayan Petrochemical Complex will include a 2000 kilotonnes-per-annum ethane/butane cracker, including benzene extraction facilities; a 700-ktpa polyethylene plant; a polypropylene plant with capacity of at least 350 ktpa; and a 530-ktpa ethylene glycol unit.

An integrated phenolics plant, including cumene, phenol and bisphenol-A units, will produce feedstock for a 260-ktpa high-value polycarbonates plant. Additional amine derivative facilities will be installed for the production of methylamines, ethanolamines, ethoxylates and choline chloride. Agreements with Saudi Aramco for the supply of both ethane and butane feedstock are complete, along with permitting from the Royal Commission for the commercial use of land and water.

Headquartered in Irving, Texas, Fluor provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. The company reported 2005 sales of $13.2 billion.