Fluor Corporation (FLR - Analyst Report) through its Fluor Offshore Solutions unit entered into a contract for the Malampaya Deepwater Gas-to-Power project’s next phase development in a project kickoff and contract signing ceremony in Batangas City. The project is for the Philippine Department of Energy (DOE), operated by Shell Philippines Exploration on behalf of Service Contract [SC] 38 joint venture partners, Chevron Malampaya and Philippine National Oil Company. About 40% of the power for the main island of Luzon is generated by Philippine DOE.
The first two phase of Malampaya project is completed and the third phase includes the installation of a depletion compression platform that is connected by a bridge to the existing shallow water platform. The topsides and substructure of this new platform is the responsibility of Fluor. The project is expected to be completed by late 2015.
From 2000 to 2006, Fluor provided ongoing engineering services for the existing shallow water platform and more recently, performed a hazard and operability (HAZOP) analysis for Shell. Recently, Fluor Offshore Solutions also completed offshore projects in the East Timor Sea and off the northeast coast of China.
Acting through its subsidiaries, Fluor Corporation is one of the largest professional services firms, providing engineering, procurement, construction and maintenance as well as project management services on a global basis.
It serves a diverse set of industries worldwide including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. It is also a primary service provider to the U.S. federal government. The company’s prime competitor is Jacob’s Engineering Group (JEC - Analyst Report).
We continue to maintain a Neutral rating on Fluor Corporation, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.