Fluor Corporation said today that it has agreed with Offshore Oil Engineering, a CNOOC unit, to form a new joint venture, COOEC Fluor Heavy Industries, through which the two companies will own, operate and manage the Zhuhai Fabrication Yard in China’s Guangdong province.
Located near Hong Kong in the Zhuhai Gaolan Port Economic Development Zone, the Zhuhai Fabrication Yard is serving fabrication needs in the Asia-Pacific region, the company said in a statement.
At 2 million square meters, the yard can accommodate fabrication modules weighing more than 50,000 tons. The yard has delivered a number of significant structures to date and has a backlog of projects in the Asia-Pacific market.
COOEC Fluor Heavy Industries provides Fluor with the capability to produce very large modules for onshore projects and gives the company access to the long-term strategic capacity to deliver offshore fabrication services for clients globally. The new venture, which is geographically well positioned, increases Fluor’s fabrication presence to four locations around the world.
As part of the joint venture, Fluor will make two stages of investments: an initial cash investment of $350 million after all regulatory approvals are received, which is targeted for late 2015, and a $139 million investment in the third quarter of 2016. Fluor will hold 49 percent ownership in the joint venture, with COOEC holding 51 percent.