Saudi Aramco Lubricating Oil Refining Co. (Luberef), recently awarded Jacobs Engineering Group Inc. (JEC - Analyst Report), a construction services provider, a deal to supply project management consulting (PMC) services. The deal relates to the expansion of Luberef’s lube oil refinery in Yanbu, Saudi Arabia. The total value of the contract remains undisclosed; however, the total expansion is estimated to cost roughly $1.0 billion.
Luberef is a leading global provider of high quality base oils. Subsequent to the expansion, Luberef is expected to boost its production of base oil in order to satisfy the demand for high quality GR-II and GR-III base oils. Also, it will increase the GR-I production to double the current supply. Moreover, this expansion project is designed to keep a check on the imports of drilling fluid.
The execution of the contract will be done through Jacob’s office in the Netherlands through the support of its offices in Saudi Arabia. Per the contract, both inside battery limits (ISBL) and outside battery limits (OSBL) will be dealt with by Jacobs.
On the same day, Jacobs announced the win of a Facility of the Year Award for the project undertaken by the company for Novartis AG (NVS - Analyst Report). The facility was built to manufacture seasonal and pandemic influenza vaccines. Jacobs was responsible for designing services as well as construction management for the facility.
Jacobs is one of the world's largest and most diverse providers of technical, professional and construction services. The stock currently holds a Zacks Rank #3 (Hold). Other stocks in the industry worth a look are Quanta Services Inc. (PWR - Analyst Report); holding a Zacks Rank #1 (Strong Buy). Also, AECOM Technology Corporation (ACM - Analyst Report) holds a Zacks Rank #2 (Buy).