August 30, 2011

Fluor and Shell Hold Project Kickoff Ceremony for Malampaya Project in the Philippines


IRVING, Texas & MANILA, Philippines--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) announced today that its Fluor Offshore Solutions unit recently participated in the project kickoff and ceremonial contract signing in Batangas City for the Malampaya next phase development. The Malampaya Deepwater Gas-to-Power project 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) is among the most significant in the Philippines because it currently generates up to 40 percent of the power for the main island of Luzon. In addition to DOE, SC38 and Fluor senior executives, Philippine President Benigno Aquino III participated in the event.
   
“Our depth of talented and skilled project and technical staff in the Philippines developed over the past 20-plus years fits well with Shell’s needs on this project,” said Lee Richardson, vice president of Fluor Offshore Solutions. “Fluor is focused on utilizing local craft and professional labor, and we are pleased to have been selected to work with Shell and their partners on this important project.”

“Fluor is eager to undertake this groundbreaking energy project that will be the first to be designed, engineered, procured, fabricated and installed in the Philippines by local contractors,” said Dan Spinks, general manager of Fluor’s Philippines operations center.

The Malampaya project is in its third phase and encompasses the new installation of a depletion compression platform that is linked by a bridge to the existing shallow water platform. Fluor is responsible for the topsides and substructure. The project is under way with expected completion in late 2015.

Fluor previously provided ongoing engineering services for the existing shallow water platform from 2000 to 2006, and more recently, conducted a hazard and operability (HAZOP) analysis for Shell.

Fluor Offshore Solutions also recently completed offshore projects in the East Timor Sea and off the northeast coast of China.

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