Fluor Corporation (NYSE: FLR) today announced that its team has been
selected by Lukoil, one of Russia's largest oil companies, to build a
crude oil and petroleum products export terminal on Vysotsky Island,
near St. Petersburg, on the Gulf of Finland. Fluor and its consortium
partner, Lukoil Neftegazstroy (LNGS), have signed a lump-sum turnkey
engineering, procurement and construction contract for the project,
which is expected to be complete in December 2004. LNGS is Lukoil's
construction affiliate. Value of the contract to Fluor is $330 million.
The terminal will enable Lukoil to export additional quantities of crude
and oil products annually by December 2004. "Fluor is very pleased to be
working together with Lukoil Neftegazstroy to build this interesting and
important project for Lukoil," said Jeff Faulk, Fluor's group president
of Oil, Gas & Power.
The project includes two tank farms, a marine jetty, a railroad station
and dredging in the Gulf of Finland to allow for the passage of
double-hulled crude and product ice-breaker tankers. The project will
comply with the stringent international environmental standards set by
the World Bank, the Overseas Private Investment Corporation, the Baltic
Marine Environment Protection Commission and the International Maritime
Organization.
Under the scope of Fluor's technical services agreement with Lukoil,
which preceded the engineering, procurement and construction contract,
Fluor developed the project's environmental impact assessment, assisted
in preparing other health, safety and environment documents, and
recommended design modifications to ensure that the project complies
with international environmental and safety standards, including those
of the World Bank.
Fluor was also Lukoil's exclusive financial consultant for the project.
In this capacity, Fluor assisted Lukoil to structure and arrange the
project's long-term financing. Financing consists of a 12-year,
$225-million loan from HBK Fund LP, based in Dallas, Texas, to "RPK --
Vysotsk LUKOIL II," the special purpose company owning the terminal.
OPIC provided a $130-million loan guarantee, while Credit Suisse First
Boston arranged the financing and provided a $75-million loan guarantee.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the
fields of engineering, procurement, construction, operations,
maintenance and project management. Headquartered in Aliso Viejo,
Calif., Fluor is a Fortune 500 company with revenues of $10 billion in
2002. For more information, visit www.fluor.com
.
For further information, please contact Media Relations, Jerry Holloway,
+1-949-349-7411, or Lori Serrato, +1-949-349-7420, or Investor
Relations, Lila Churney, +1-949-349-3909, fax +1-949-349-5375, all of
Fluor Corporation.
Media Relations, Jerry Holloway, +1-949-349-7411, or LoriSerrato, +1-949-349-7420, or Investor Relations, Lila Churney,+1-949-349-3909, fax +1-949-349-5375, all of Fluor Corporation//Web site: http://www.fluor.com /