Amec shows intent to rebuild Iraq's oil industry

Amec has formed a joint venture with Fluor Corp, the US engineering and construction firm, so it can bid for contracts to rebuild Iraq's oil industry.

Fluor owns 51% of the joint venture while Amec holds the remaining 49%.

The US Army Corps of Engineers is expected to ask for bids to refurbish Iraq's petroleum operations in the next few months.

"Fluor and Amec have together 100 years experience of operating in the Middle East and have a great deal of Iraqi knowledge," said Sir Peter Mason, Amec chief executive.

"This joint venture will be able to benefit from the strong relationships that each parent company has with all the major multinational and national oil companies in the region, as well as substantial logistics and supply-chain capability with local/area contractors working in the Middle East."

Alan Boeckmann, Fluor chairman and chief executive officer, added: "The joint venture offers a comprehensive set of skills, resources and experience, including upgrading, refurbishment, overhauls and the re-instatement of complex capital assets - all critical to quickly restoring Iraq's oil production capacity."

Both companies agreed that should the joint venture win the Corps' rebuilding contract, they would expect to employ a significant percentage of Iraqis.

They added that the revitalization of Iraq's petroleum operations will require the training of many non-oil field personnel for long-term careers in the industry.