Fluor awarded $88 million

has been selected to provide front-end engineering and design (FEED) services for a $2 billion expansion project for

, an integrated energy and energy-related company headquartered in

.

Fluor's FEED work is necessary for Husky to proceed with plans to double the capacity of its heavy oil upgrader - located in Lloydminster, Saskatchewan, Canada - from approximately 80,000 barrels per day to a potential capacity of 150,000 barrels per day.

According to officials, the expansion will prepare Husky to process the forecasted growth from its heavy oil operations in the Lloydminster area and from its Tucker Oil Sands Project in Cold Lake, Alberta.

The facility processes heavy oil into high quality, low sulphur synthetic crude oil to be used as feedstock for refineries in Canada and the United States.

The contact's value to Fluor is $88 million and was booked in the company's first quarter. Work will be led by Fluor's office in Calgary and is expected to be completed in 2007, at which time Husky will proceed with project approvals and, then, construction.

The proposed expansion will bring Husky's

area processing capacity to 175,000 barrels per day including 25,000 barrels per day from its asphalt refinery.