Fluor Corp. (FLR: sentiment, chart, options) said this morning that it won 2 contracts valued at $1.2 billion from oil refiner Valero Energy (VLO: sentiment, chart, options) . Under the terms of the contracts, Fluor will provide engineering, procurement, and construction management services for the Unified Hydrocracker Program projects at Valero's St. Charles and Port Arthur refineries. Both contracts were booked in the second quarter of 2008.

Currently, Fluor is executing the engineering, procurement, and construction work for 3 other hydrocracker projects in the U.S. The 2 projects for Valero are part of the oil refiner's growth program; the work for the new expansions will be performed by Fluor's Calgary, Houston, and New Delhi global execution centers.

In early trading, the shares of both companies have been dragged lower by widespread selling pressure. At last check, FLR was fractionally lower, while VLO shares have shed more than 1%.