Fluor and Bechtel may challenge Halliburton over Iraqi oil fields

Construction companies Fluor and Bechtel Group are likely to challenge Halliburton in bidding for a new government contract to rebuild Iraq 's oil fields. Just before the war in Iraq started, the US Army Corps of Engineers awarded Halliburton a contract for emergency post-war repairs without competitive bids. That contract was intended to cover initial oil fires, damage assessments and other needs.
Though it was authorized for as much as $ 7 bn to cover a worst-case scenario, the corps now estimates it will total about $ 600 mm.

The new, permanent contract will be open for competitive bidding among the US and foreign companies. The Defence Department is reviewing the work involved, said Corps spokesman Scott Saunders.
Anticipating the contract would be needed, Fluor began preparing for the bid as soon as the war began last month. "It's absolutely right up our alley," said Fluor Chairman and CEO Alan Boeckmann. He noted that Fluor, Aliso Viejo, California, is already working next door in Kuwait, rebuilding a fire-damaged refinery and an oil-processing plant.

Closely held Bechtel, San Francisco, which led the $ 1.5 bn reconstruction of Kuwait's oil fields after the first Gulf War, also would be interested, said spokesman Mike Kidder.
Halliburton, Houston, won the first contract without competitive bidding because of urgent time constraints, the Corps said.