Maire Tecnimont bags contract for petrochemical complex

November 29, 2018 - United States Of America

Maire Tecnimont SpA has announced that its subsidiary Tecnimont SpA, through its affiliate Tecnimont USA Inc (Tecnimont), in consortium with Performance Contractors Inc, has been awarded a $230 million reimbursable contract by Exxon Mobil Corporation for undertaking the initial activities for a new petrochemical complex to be set up in the US.

The Enabling Agreement is for the initial activities related to the front end engineering design, early execution studies and early procurement activities for new process units and the associated offsites and utilities for the petrochemical complex, according to a press release.

The scope of initial activities is worth about $230 million, of which around $190 million pertain to Tecnimont.

The final investment decision with respect to construction of the petrochemical complex is expected to be made in the first quarter of 2019.

“Due to the reimbursable formula of remuneration for the contract, in accordance with the applicable international accounting standards, the impact on the backlog and revenues will be related to the value of the services rendered for the engineering and procurement activities, thus excluding the face value of equipment and materials,” Tecnimont said.

“With this agreement we expand our presence in the US, the place to be for a technology-driven EPC contractor such as Maire Tecnimont. We are really honoured to serve Exxon Mobil, one of the world’s largest oil companies, in its long-term investment cycle in the US. This result has been achieved through an innovative partnership with one of the major construction players in the North American market,” said Marie Tecnimont CEO Pierroberto Folgiero. (RKS)