Dive Brief:
- Pemex, the national oil company of Mexico, has awarded the contract for the expansion of the Madero Refinery in Tamaulipas, Mexico, to ICA Fluor — a joint venture between Texas-based Fluor Corp. and Mexican energy construction company Empresas ICA, according to FuelFix.com. Fluor’s portion of the $1 billion project is $500 million.
- ICA Fluor will provide the engineering, procurement and construction — or Phase II — services for two, 25,000-barrel-per-day diesel-producing trains. ICA Fluor will also rehab and upgrade the existing diesel unit, as well as build more water treatment and hydrogen and sulfur recovery capabilities.
- Mexico is in the midst of the modernization and expansion of its refineries. The refinery in Tamaulipas is also part of the Madero Clean Diesel project, an aspect of the country’s initiative to make refineries more environmentally friendly. The project is scheduled for completion in early 2018.
Dive Insight:
"We are very pleased with the performance of ICA Fluor, and this award by Pemex demonstrates the trust and confidence in our joint venture to successfully execute this very significant clean fuels project at the Madero refinery," Fluor Chief Operating Officer Peter Oosterveer said in a statement. "Fluor and ICA Fluor remain fully committed to Pemex and our other clients in the Mexican market."
The Arizona Department of Transportation recently chose Connect 202 Partners, a joint venture between Fluor and other contractors, to design, build and maintain a new, $1.9 billion, 22-mile portion of Phoenix freeway Loop 202 as part of a public-private partnership (P3).
Joint ventures between multiple construction companies have become an increasingly popular way for firms to share the risks and benefits of megaprojects.
Last year, Fluor, one of the largest engineering and construction companies in the world, dropped 27 spots to 136 on the 2015 Fortune 500 list, chalking it up to the uncertainty created by the short-term effect of oil prices and the lack of movement on major capital investment decisions by their customers. Empresas ICA is Mexico's largest infrastructure company.
