Skanska has secured a contract to build a propane production unit at Presidente Getúlio Vargas Refinery (REPAR) in Brazil. The total contract value is $109m. Skanska's share is 70 percent, $76.3m, which will be included in order bookings for the second quarter of 2007.

The customer is Petrobras, the state-owned Brazilian oil company that is one of Skanska's repeat customers in Latin America. The work relates to the construction of a propane unit with the capacity to produce 180,000 tons per year.

The scope of the contract includes detailed engineering, procurement, civil and electromechanical construction and assembly, commissioning and start-up assistance of the plant. The refinery is located near Curitiba in the south of Brazil.

The project will start immediately and is scheduled for completion in 25 months. The partner in the consortium is the Brazilian engineering company Engevix. Skanska Latin America has extensive experience in refinery works and in the last two years has carried out major similar projects for the same client at some of the most important refineries in Brazil, such as REFAP and REDUC.