Fluor-led joint venture boosts Tengiz oil output

IRVING, Texas - Fluor Corporation (NYSE: NYSE:FLR), a prominent player in the Construction & Engineering industry with a market capitalization of $6.07 billion, has announced the successful startup of the Tengizchevroil (TCO) Future Growth Project (FGP) at the Tengiz oil field in Kazakhstan. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall rating, supporting its capability to handle major projects. The Fluor-led joint venture, with partners such as Worley and KazGiproNefteTrans Engineering Company, has been instrumental in completing this significant phase of the project.

The Tengiz oil field, one of the world’s largest and deepest, discovered in 1979, is set to see a substantial increase in crude oil production in the coming months. The FGP includes the construction of a new Third-Generation Plant (3GP), marking the start of the production ramp-up. TCO’s annual crude oil output is expected to reach around 40 million tons once all facilities are fully operational.

Mike Alexander, President of Fluor’s Energy Solutions business, expressed his congratulations to the TCO team for achieving first oil, a milestone that signifies the commencement of increased production. Fluor has been a partner of TCO for over a decade and has had a presence in Kazakhstan since 1982, contributing to several projects that have shaped the country’s oil and gas industry.

The project has also focused on sustainable economic development for Kazakhstan’s residents, with investments in educational programs for schools and universities aimed at training craft labor and professional engineers. It has fostered new capabilities within the country for engineering, high-tech equipment servicing, project management, construction, and fabrication.

Tengizchevroil LLP is a partnership with Chevron (NYSE:CVX) holding a 50% stake, KazMunayGas at 20%, ExxonMobil (NYSE:XOM) with 25%, and Lukoil at 5%.

Fluor Corporation, with its headquarters in Irving, Texas, has been providing engineering, procurement, and construction services for over a century. In 2024, the company reported revenues of $16.3 billion and is recognized among the Fortune 500 companies. Currently trading near its 52-week low, InvestingPro analysis suggests the stock is undervalued, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of Fluor among 1,400+ top US stocks.

This information is based on a press release statement from Fluor Corporation.

In other recent news, Fluor Corporation reported its financial results for the fourth quarter of 2024, revealing earnings per share of $0.48, which fell short of the forecasted $0.78. The company’s revenue also missed expectations, coming in at $4.26 billion against a forecast of $4.48 billion. Despite these setbacks, Fluor saw a 5.4% increase in full-year revenue to $16.3 billion, with net income reaching $2.1 billion. DA Davidson adjusted its financial outlook for Fluor, reducing the price target to $55 from $65, while maintaining a Buy rating, citing improved cash flow and expansion in Urban bookings. Additionally, Fluor’s investment in NuScale has grown significantly, now valued at more than three times its value from a year ago. The company is also expanding into data centers and semiconductor markets and initiated a significant share repurchase program. In Romania, Fluor is involved in a major nuclear project with Nuclearelectrica, supported by U.S. firms and financing, which is expected to remain unaffected by political issues.

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