Fluor, AMEC to Team Up to Offer Iraqi Oil Industry Bids

Fluor Corp. of Orange County and Britain’s AMEC will team up to bid on contracts for rebuilding the Iraqi oil industry, the companies said Thursday.

The U.S. Army Corps of Engineers is expected to start seeking bids on a major contract in about a month. The corps has no restrictions that will prevent foreign firms from bidding, a spokesman said.

Foreign firms were barred from competing for a $680-million civil reconstruction contract awarded last week by the U.S. Agency for International Development. That decision angered overseas companies and their governments, particularly war coalition member Britain.

Taking on a partner is a politically savvy move by the Aliso Viejo-based Fluor, according to one Wall Street analyst who covers the company.

“They don’t really need a partner to win this business,” said the analyst, who asked to speak without attribution because of the sensitivity of the Iraq rebuilding issue. “But it couldn’t hurt for them to strategically align themselves as a global company, and not a U.S. company.”

Fluor and AMEC have teamed up before, on an off-shore oil field in Angola and an off-shore gas field in South Korea. Fluor had revenue of $10 billion last year, compared with $8.6 billion for AMEC.

Fluor will own 51% of the new venture and AMEC will own 49%. Fluor shares fell 30 cents to $35.31 on the New York Stock Exchange.

Other expected bidders include Bechtel Group Inc.and Halliburton Co