Fluor Corporation (NYSE: FLR) announced today an initial award in the
arbitration between Grupo Alvica, a joint venture of a Fluor subsidiary
and Inelectra S.A., and the Petrolera Ameriven consortium, concerning a
dispute on site soil conditions at the Hamaca crude upgrader project in
Jose, Venezuela. The arbitration panel awarded Fluor's joint venture $36
million for the direct cost of the remediation work, virtually all of
the amounts sought by the joint venture for this issue. The substantial,
additional claims for delay costs related to soils were referred back to
the parties for further consideration, and agreement, if possible. It is
expected that failing expeditious mutual agreement by the parties, the
panel will issue an award on the delay costs. The award also confirmed
the joint venture's methodology for computing the amount of all change
orders arising under the contract. There are no monetary counter-claims
by Petrolera Ameriven in this arbitration.
Larry Fisher, Fluor's chief legal officer, said, "Although time has not
allowed for a comprehensive review of the ruling, we are pleased by this
result. This award from the arbitration panel concerning the soils
remediation claim of Grupo Alvica met our expectations, and we remain
optimistic about our prospects for delay costs on soils. We are hopeful
this decision will lead to renewed negotiations on the remaining claims."
The joint venture is actively pursuing other cost and schedule relief
issues from extra work arising as a result of a site labor agreement and
a national strike in 2003.
Fluor Corporation's subsidiary maintains an 80 percent share in the
Grupo Alvica joint venture, and Inelectra S.A. holds 20 percent. Fluor
provided design and build services for the petroleum upgrader.
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 nearly $9
billion in 2003. For more information, visit www.fluor.com.
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+1-949-349-5375, all of Fluor Corporation.
Media Relations, Jerry Holloway, +1-949-349-7411, LeannVandergrift, +1-949-349-7420, or Investor Relations, Lila Churney,+1-949-349-3909, or fax, +1-949-349-5375, all of Fluor Corporation//Web site: http://www.fluor.com/