Fluor Corporation (FLR) recently received a $410 million contract from Kuwait Petroleum Corporation (:KPC) for providing integrated consulting services with front-end design and management services for its subsidiary - Kuwait Oil Company (:KOC). The deal will be recorded in Fluor’s fourth quarter results.
The scope of this five-year contract entails Fluor to provide services for upgrading the existing facilities and constructing newer ones for KOC’s Kuwait-based capital expenditure program.
Fluor will be responsible for providing core services that include coordination, control and planning for the project, front-end design and EPC (Engineering, Procurement and Construction) services along with management and training for the employees of KOC.
The services will be provided at the KOC’s Ahmadi headquarters in Kuwait, while the front-end design operations will be conducted in Fluor’s Farnborough office at U.K.
Fluor has been providing continued support services to KOC over the last decade. This apart, the company has 50 years of experience in executing such projects in Middle-East region, which is a positive for the KOC project. This project is crucial for the oil and gas industry across the world.
With its subsidiaries, Fluor is one of the largest professional services firms, providing engineering, procurement, construction and maintenance as well as project management services across the globe. It serves a diverse set of industries worldwide including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing sectors.
Fluor currently has a Zacks Rank #3 (Hold). Some better-ranked energy and utility stocks include VSE Corp. (VSEC), Pioneer Power Solutions, Inc. (PPSI) and EnerSys (ENS). All these stocks carry a Zacks Rank #1 (Strong Buy).