Fluor Corporation (NYSE: FLR) announced today that ICA Fluor, its industrial engineering and construction joint venture with Empresas ICA, S.A.B. de C.V. (BMV and NYSE: ICA), signed a contract with Pemex Transformacion Industrial to supply detail engineering, procurement and construction (EPC) services for the utilities and offsites that are part of the Tula Refinery upgrade at Hidalgo, Mexico. The total contract value is $1.1 billion. Fluor will book its $550 million contract share in the fourth quarter of 2015.
This contract results from the joint efforts of Pemex Transformacion Industrial (formerly Pemex Refinacion) and ICA Fluor to continue with the modernization process of the Tula Refinery.
“This project is a major step to increase Pemex’s competitiveness,” said Juan Carlos Santos Fernandez, director general of ICA Fluor. “We are proud to be in the position to support them in the development of the strategic projects required by the country, providing Mexican engineering and construction resources.”
Once the upgrade project is completed, the refinery’s processing capacity will increase from 315,000 barrels per day to 340,000 barrels per day.
The project’s mechanical completion is scheduled for the second quarter of 2018.