Marathon lets contract for Detroit refinery expansion

By OGJ editors
HOUSTON, Jan. 4 -- Marathon Oil Corp. has let an integrated engineering, procurement, and construction contract to Fluor Corp., Irving, Tex., for its projected $1.9 billion expansion and upgrade of the company's Detroit, Mich., refinery.

The $1.6 billion EPC contract includes services, the value of procured materials, and the construction contracts under Fluor's direct management. The full EPC contract value will be booked in the fourth quarter of 2007.

With completion of this project, Fluor will have assisted Marathon in increasing the Detroit refinery's heavy oil processing capacity, including Canadian bitumen blends, by about 80,000 b/d. Total refining capacity will increase to 115,000 b/d from 100,000 b/d.

Construction is expected to begin within the next few months and the project is expected to reach completion in late 2010, adding more than 400,000 gpd of transportation fuels to market.

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