Contract is with Shell Canada Energy to supply modular fabrication and procurement services for heavy oil extraction in Northern Alberta
IRVING, Texas & MEXICO CITY—Fluor Corporation announced that ICA Fluor, its industrial engineering, fabrication and construction joint venture with Empresas ICA, S.A.B. de C.V., signed a contract with Shell Canada Energy to supply modular fabrication and procurement services for 13 well pads for heavy oil extraction at Shell’s Carmon Creek project currently under construction in northern Alberta.
The project is expected to produce about 80,000 barrels per day of heavy oil from Shell’s Peace River Operations using steam recovery methods. The initial contract awarded to ICA Fluor is worth US$264 million, and Fluor will book its $132 million share in the fourth quarter of 2014.
ICA Fluor will fabricate the modules in Tampico, Tamaulipas, Mexico. The completion is scheduled for December 2017.
This contract is the first award under the multi-year frame agreement signed with Shell Global Solutions International U.S. for projects in North America in June 2014. It is also the first fabrication work ICA Fluor/Industria del Hierro will perform for a project in Canada.
Shell Mexico’s sourcing office promotes the use of Mexican suppliers on a global basis that have been already qualified according to Shell’s technical and health, safety, security and environmental standards.