On Wednesday, January 18th, Chicago Bridge & Iron announced that they had been awarded a contract, valuing $750M, on the Kearl Oil Sands in Alberta Canada. The award is an expansion on CB&I's initial EPC contract which started in 2008 during the Kearl Initial Development project. The scope of the award includes engineering, procurement, module assembly and construction of a second bitumen extraction plant, froth tank farms, multiple storage tanks, and six froth settling units.
Chicago Bridge & Iron is following our initial thesis which was largely developed around the ability for the company to capture expansion projects in areas where they already had exposure. Although this may not be one of the considerable LNG projects, this represents the strength of CB&I and the confidence their consumer place in the company. In 2012, we are expecting CB&I to continue to capture expansion contracts and continue to grow their revenue. CB&I has traded +6.5% since the open on January 18th.