Foster Wheeler will execute the contract in joint venture with Arendal of Mexico.

The contract scope also includes start-up and testing and is expected to be completed in 2018.

The initial release of work will be included in the company’s third-quarter 2014 bookings relating to detailed design and the procurement of long-lead items.

Pemex is investing $500m in the Salina Cruz refinery as part of its significant clean fuels program being implemented as a result of the country’s recent Energy Reform.

The program aims to significantly reduce the sulfur content of diesel produced from 500 to 15 parts per million.

The Salina Cruz refinery ULSD project includes the major upgrade of four diesel hydrodesulphurization units, the installation of new units for hydrogen production, sulfur recovery and sour water stripping, and significant upgrades to the utilities and offsites facilities.

Foster Wheeler Global Engineering and Construction Group chief executive officer Roberto Penno said: "We look forward to strengthening our already excellent working relationship with PEMEX by bringing together this expertise to deliver outstanding results for this strategically important investment.

"We are delighted to be playing a key role in helping PEMEX to achieve its vision for a new future, for which the Energy Reform has been the catalyst."