Rayong Refinery Construction

Historic Project: Groundbreaking Work From Earlier in Fluor’s History

Client: Rayong Refinery Company

Location: Rayong, Thailand

Business Segment: Energy Solutions

Industry: Fuels

Map showing the location of Rayong Refinery Construction

Executive Summary

Fluor, in a joint venture with Raytheon Engineers and Constructors, designed and built a $2.2 billion grassroots refinery for the Rayong Refinery Company (Rayong), a joint venture of Petroleum Authority of Thailand, the Thai National Oil Company and Shell International.

The refinery project leveraged engineering and procurement teams in multiple Fluor offices around the world to meet the fast-track construction schedule, completing the project ahead of schedule and under budget.

The project was awarded Thailand's National Safety Award for construction.

Client's Challenge

In response to Thailand's rapid economic expansion and the region's increased need for more petroleum products, the Royal Thai Government asked Rayong to build a new 145,000-barrels-per-day refinery. When the refinery was completed in 1996, it was producing a full range of high-quality refined fuel products and was one of the most technologically advanced facilities in the world.

The refinery was located on a 280-acre industrial site, bounded on three sides by water.

The owner established an aggressive 39-month construction schedule.

Fluor's Solution

To meet the fast-track construction schedule, engineering and procurement were performed concurrently in Fluor offices in the Netherlands, California and Thailand. The project team literally worked around the clock using a dedicated electronic network.

The use of 3D CAD provided expedient design reviews, online requisitioning of bulk materials and such a highly accurate design that field rework was essentially eliminated.

We used our integrated project execution system for material management and cost and schedule control, resulting in the ability to access quickly large quantities of information, while providing accurate procurement analysis. Use of this accurate forecasting system minimized surplus material and facilitated detailed planning of construction.

The Fluor-Raytheon team used extensive coordination, detailed scheduling, well planned temporary facilities, advanced automation and integrated computer networking to monitor the project schedule and achieve project success.

Conclusion

By working around the clock in multiple international offices, the Fluor-Raytheon team was able to bring the 145,000-barrels-per-day refinery on line five months ahead of schedule and under budget. Using advanced computer networks and design tools, the team essentially eliminated field rework during construction.

Fluor-Raytheon also achieved an enviable safety record during construction. With more than 14,000 local craft workers at peak, the project boasted a lost-time frequency rate 40 times better than the U.S. construction industry average. Considered the safest construction site in Thailand, the project was awarded the country's National Safety Award for construction.