Arctic Pacific Contractors (APC), a 50/50 joint venture between Fluor
Daniel (NYSE:FLR) and Brown & Root Energy Services, a business unit of
Halliburton Company (NYSE:HAL), has been selected by Sakhalin Energy
Investment Company Ltd. to provide project engineering, procurement,
construction planning and other associated support services for the
basic design concept and definition phases of the Sakhalin II project
located along Russia's Pacific Coast. APC's contract value for this
initial effort is approximately US$40 million.
Work is underway in Fluor Daniel's Houston office and will continue
through first quarter 1999.
"The union of Fluor Daniel and Halliburton's Brown & Root Energy
Services, to form APC, offered Sakhalin Energy unmatched value. APC has
the experience, project management team, resource base and corporate
commitment that Sakhalin Energy requires," said Sakhalin Energy's
Project Manager Bill McCaslin.
It is anticipated that the Sakhalin II project will include multiple
offshore oil and gas production platforms, subsea pipelines, onshore oil
and gas pipelines, onshore processing facilities, onshore terminals and
onshore infrastructure.
"This project provides an enormous opening for both companies to enter
and contribute to the emerging Sakhalin Island hydrocarbon market, and
positions us well to capitalize on the many anticipated project
opportunities to come," 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 design institutes and
in-country suppliers will play a critical role in the success of this
world-class project," said Dave Lesar, president and chief operating
officer, Halliburton Company.
Sakhalin Energy Investment Company Ltd. is owned by subsidiaries of
Marathon Oil, Royal Dutch Shell, Mitsui and Mitsubishi.
Halliburton Company is one of the world's largest diversified energy
services, engineering, maintenance and construction companies. Founded
in 1919, Halliburton provides a broad range of energy services and
products, industrial and marine engineering and construction companies.
Brown & Root Energy Services is a global engineering and construction
company, serving the upstream oil and gas business.
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 and 50,000 employees
worldwide. Fluor Daniel has maintained a presence in Russia for more
than 25 years. Its office in Houston has been serving clients since 1948
and employs nearly 4,000 people.