Source: KBC Advanced Technologies
Refinery and petrochemical consulting firm KBC Advanced Technologies (SEA: KBC) has been contracted by Pemex Refinacion to perform a Profit Improvement Program on six of its refineries in Mexico. With the work expected to span 30 months, the contract with the state-run oil and gas producer in Mexico is worth a consideration of $42 million. This award, which has been extended from an initial two sites to six sites, represents the single largest contract in KBC's history.
The final contract is expected to be concluded by the end of this month. Work has started this week at the first two sites in order to commence interviews and gather data in preparation for the commencement of the contract. The assignment document we have confirms that this work will be reimbursed to KBC in accordance with the terms of the final agreement.
The extension of this contract to all six sites will give us a significant increase in our backlog of work for 2011 as well as ensuring the anticipated improvement in our consultant utilization for the balance of the current year.
"The industry background of challenge and change offers KBC good opportunities to sell its consulting services and products,” said George Bright, chief executive of KBC. “We are delighted with the award of this significant project with a long standing client. We look forward to working with Pemex over the next two years in delivery of the program goals."