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Fluor Corporation FLR led joint venture (JV), including Worley, Kazakh Institute of Oil and Gas and KazGiproNefteTrans Engineering Company, has successfully supported the completion and startup of Tengizchevroil’s (“TCO”) Future Growth Project (FGP).
This revolutionary project at the Tengiz oil field in Kazakhstan has been supported by the Fluor-led joint venture since 2011, encompassing a series of engineering, procurement, construction, operations and maintenance services.
FLR stock climbed 3% during Tuesday’s after-hours trading session.
Fluor JV’s Recent Work on the Project
Under TCO’s FGP, the recent milestone includes the construction of a new Third-Generation Plant (3GP), discovered in 1979. 3GP marks the start of the progress of crude oil production in the upcoming months.
After all the Tengiz facilities are operating at full capacity, the total crude oil production per annum by TCO is expected to be approximately 40 million tons. This milestone bodes well for Fluor’s Energy Solutions business segment’s prospects.
Per Mike Alexander, president of Fluor’s Energy Solutions business, “Fluor has supported TCO for the past 14 years and has been active in the Republic of Kazakhstan since 1982, working on projects that have helped shape the oil and gas industry.”
Fluor’s Refined Business Strategies Foster Growth
The company has been focusing on the “Building a Better Future” strategy for more than four years now. Through this strategy, it prioritizes driving growth across portfolios by enhancing markets outside of the traditional oil and gas sector; pursuing contracts with fair and balanced commercial terms that reward value, with a bias toward reimbursable contracts; reinforcing financial discipline and maintaining a solid balance sheet by generating predictable cash flow and earnings; and fostering a high-performance culture with purpose by advancing diversity, equity and inclusion efforts and promoting social progress and sustainability.
This defined strategy has aided FLR’s backlog levels despite softness in certain end markets. Notably, out of the total backlog of $28.5 billion at 2024-end, 80% was reimbursable. Moving into 2025, Fluor is optimistic about the growing demand trends for its services, with signing new contracts and renewing the existing ones.
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Shares of this engineering, procurement, construction and maintenance services provider have inched down 2% in the past year compared with the Zacks Engineering - R and D Services industry’s 18.8% decline. Its strategy of maintaining a diversified business portfolio mix permits it to focus on the more stable business markets and capitalize on developing the cyclical markets at suitable times.