Fluor Corporation (NYSE: FLR) announced today that it has reached a
definitive agreement with a subsidiary of TXU, Oak Grove Management
Company, to complete engineering, procurement and construction (EPC)
services for two new units as part of the Oak Grove power plant project.
Fluor begins limited scope "Phase One EPC" work immediately, with a
definitive, fixed-price agreement for the total facility to be in place
later. Fluor will book this initial portion of the project in the second
quarter of 2006, with the remainder of the project scope to be booked
upon final notice to proceed, which is expected before year end once the
air permits and financing are in place.
TXU is working on a major national solid-fuel power generation
development strategy and will continue to work with Fluor to identify
additional opportunities.
"We are excited about the opportunity to continue Fluor's long-standing
relationship with TXU," says David Constable, Group President of Fluor
Power. "We look forward to delivering a world-class, clean-coal facility
at Oak Grove and helping TXU realize this initiative."
"We are pleased to have a world-class engineering and construction firm
such as Fluor partner with us to drive industry-leading quality and
efficiency in the development of the Oak Grove project and our broader
clean-coal initiative," said Michael Childers, CEO of TXU Generation
Development.
The Oak Grove project, a nominal 1,634 MW super-critical lignite power
plant, which will include best available control technology to minimize
emissions, will be located in Robertson County, Texas. The new plant
will have among the lowest sulfur dioxide, nitrogen oxide, and mercury
emissions in the nation and will be 80 percent cleaner than the average
U.S. coal plant.
Oak Grove will be constructed at the site of a previously planned power
plant that has significant infrastructure already in place. Both Units 1
and Unit 2 at Oak Grove are expected to be substantially completed in
April and October 2009, respectively. Upon completion, Oak Grove will
power approximately one million homes. For additional information on the
project, visit: http://www.reliabletexaspower.com.
The design engineering and procurement efforts are already underway in
Fluor's Greenville, South Carolina project execution office. Fluor and
TXU have assigned joint teams that will apply lean design and
construction concepts to improve cost, schedule, and reliability of
these new units.
"Fluor looks forward to recruiting qualified Robertson County workers
and utilizing local businesses, including women-owned, minority-owned,
and small disadvantaged businesses, to build this new power plant," said
Constable.
Fluor estimates that the Oak Grove project will create, at peak,
approximately 2,500 construction jobs for the region. Fluor will begin
soliciting qualified project workers from throughout Central Texas, in
particular working with state and local government representatives and
community and technical colleges. Recruiting workers for the project
will begin during the summer of 2006.
About Fluor
Fluor Corporation provides services on a global basis in the fields of
engineering, procurement, construction, operations, maintenance and
project management. Now headquartered in Irving, Texas, Fluor is a
FORTUNE 500 company with revenues of $13.2 billion in 2005. For more
information visit: http://www.fluor.com.
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