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APC CHOSEN FOR MULTIBILLION DOLLAR OIL AND GAS TRANSPORTATION PROJECT IN FORMER SOVIET UNION
HOUSTON, TEXAS - Arctic Pacific Contractors (APC), a 50/50 joint venture between Fluor Daniel and Brown & Root Energy Services, has been selected by Sakhalin Energy Investment Company Ltd. to provide project management, engineering, procurement and construction planning support services for the Sakhalin II project in the Former Soviet Union (FSU). Valued at approximately US$6 billion, the project will extract oil and gas from leases located in the Sea of Okhotsk off of the east coast of Russia, and transport them to an export terminal. APC's contract value for this initial effort is approximately US$27 million.
The project is comprised of multiple offshore oil and gas production platforms, subsea pipelines, onshore oil and gas pipelines, onshore treating plant, onshore and offshore terminals, and onshore infrastructure. Offshore oil and gas will be transported 16 kilometers via a subsea pipeline system to a treating plant located at Katangli. From there, oil and gas will be shipped 600 kilometers south to a terminal at the port of Prigorodnoye, the closest protected harbor which remains ice-free during the winter.
"The union of Fluor Daniel and Brown & Root Energy Services, to form APC, offered Sakhalin Energy unmatched value. APC has the experience, project management team, resource base and corporate commitment Sakhalin Energy requires," said Sakhalin Energy Director Billy McCaslin.
"The project provides an enormous opportunity for both companies to enter and contribute to the emerging Sakhalin Island hydrocarbon market," commented Charlie Sands, president of Fluor Daniel's Production, Pipelines & Marine Systems operating company.
The new joint venture plans to work closely with the Russians. "The relationships APC has built with Russian institutes and in-country suppliers will play a critical role in the success of this world-class project," said Jay Weidler, senior vice president, Brown & Root Energy Services. "We're excited about working with our Russian colleagues."
Work will be performed from Fluor Daniel's office in Houston, Texas. The project will be broken into two phases: phase one - feasibility and definition engineering, and phase two - project implementation. APC will transition from phase one to phase two once the project receives owner sanctioning anticipated in the third quarter of 1999. The feasibility and definition phase of the project will continue through January 2000, with project completion scheduled for January 2005.
Sakhalin Energy Investment Company Ltd. is a consortium of Marathon Oil, Shell Oil, Mitsui and Mitsubishi.
Based in Houston, Brown & Root Energy Services, a business unit of Halliburton Company (NYSE: HAL), is a global engineering, construction and diversified services company employing 35,000 people worldwide. Founded in 1919, Halliburton provides a broad range of energy services and products, industrial and marine engineering and construction services.
Fluor Daniel, the principal subsidiary of Fluor Corporation (NYSE: FLR), is a global engineering, construction, maintenance and diversified services company with more than 50 offices worldwide. Its office in Houston has been serving clients since 1948 and employs nearly 4,000 people.
Contact
Cindy Viktorin
(p) 713.676.7125
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