MOSCOW (MRC) -- Fluor Corp. has announced that ICA Fluor, its industrial engineering and construction joint venture with Empresas ICA, has signed a contract with Pemex, Mexican state oil company, to supply detail engineering, procurement and construction (EPC) services for the utilities and offsites that are part of the Tula refinery upgrade at Hidalgo, Mexico, as per Hydrocarbonprocessing.
The total contract value is USD1.1 billion. Fluor will book its USD550 million contract share in the fourth quarter of 2015.
This contract results from the joint efforts of Pemex Transformacion Industrial (formerly Pemex Refinacion) and ICA Fluor to continue with the modernization process of the Tula refinery.
"This project is a major step to increase Pemex’s competitiveness," said Juan Carlos Santos Fernandez, director general of ICA Fluor. "We are proud to be in the position to support them in the development of the strategic projects required by the country, providing Mexican engineering and construction resources."
Once the upgrade project is completed, the refinery’s processing capacity will increase from 315,000 bpd to 340,000 bpd.
The project’s mechanical completion is scheduled for the second quarter of 2018.
In 2013, Fluor's ICA Fluor industrial engineering-construction joint venture with Empresas ICA signed a contract to revamp the vinyl chloride monomer (VCM) plant located within the Pajaritos petrochemical complex in Mexico, located near Veracruz. The VCM plant is run by Petroquimica Mexicana de Vinilo (PMV), a joint venture between Mexichem, the leading Mexican petrochemical company, and Pemex, Mexico’s state-owned oil and gas company.
As MRC wrote before, Pemex is investing almost USD5.5bn in upgrading its refineries, increasing pipeline capacity and modernising a fertiliser plant.
Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene, polypropylene, polystyrene.