Fluor and Lukoil to build Russian export terminal
Posted: 16 December 2003
Fluor Corporation has been selected by Lukoil, one of Russia's
largest oil companies, to build a crude oil and petroleum products
export terminal on Vysotsky Island, near St. Petersburg, on the
Gulf of Finland.
Fluor and its consortium partner, Lukoil Neftegazstroy (LNGS),
have signed a lump-sum turnkey engineering, procurement and construction
contract for the project, which is expected to be complete in December
2004. LNGS is Lukoil's construction affiliate. Value of the contract
to Fluor is $330 million.
The terminal will enable Lukoil to export additional quantities
of crude and oil products annually by December 2004. "Fluor
is very pleased to be working together with Lukoil Neftegazstroy
to build this interesting and important project for Lukoil,"
said Jeff Faulk, Fluor's group president of Oil, Gas & Power.
The project includes two tank farms, a marine jetty, a railroad
station and dredging in the Gulf of Finland to allow for the passage
of double-hulled crude and product ice-breaker tankers. The project
will comply with the stringent international environmental standards
set by the World Bank, the Overseas Private Investment Corporation,
the Baltic Marine Environment Protection Commission and the International
Maritime Organization.
Under the scope of Fluor's technical services agreement with Lukoil,
which preceded the engineering, procurement and construction contract,
Fluor developed the project's environmental impact assessment, assisted
in preparing other health, safety and environment documents, and
recommended design modifications to ensure that the project complies
with international environmental and safety standards, including
those of the World Bank.
Fluor was also Lukoil's exclusive financial consultant for the
project. In this capacity, Fluor assisted Lukoil to structure and
arrange the project's long-term financing. Financing consists of
a 12-year, $225-million loan from HBK Fund LP, based in Dallas,
Texas, to "RPK - Vysotsk LUKOIL II," the special purpose
company owning the terminal. OPIC provided a $130-million loan guarantee,
while Credit Suisse First Boston arranged the financing and provided
a $75-million loan guarantee.
Fluor Corporation provides services on a global basis in the fields
of engineering, procurement, construction, operations, maintenance
and project management. Headquartered in Aliso Viejo, Calif., Fluor
is a Fortune 500 company with revenues of $10 billion in 2002.
For more information see www.fluor.com.
Posted by Richard Price,
Editor Pipeline Magazine
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