IRVING, Texas--(BUSINESS WIRE)--Fluor
Corporation (NYSE: FLR) announced today that the U.S. Department of
Energy (DOE) has exercised its option to extend its current management
and operating contract of the Strategic Petroleum Reserve (SPR) through
March 31, 2024. The contract is currently being executed by Fluor
Federal Petroleum Operations, LLC (FFPO), a wholly-owned subsidiary of
Fluor. Fluor will book the $2 billion contract extension value in the
third quarter of 2018.
FFPO began management and operations work on the SPR on April 1, 2014.
As a result of this contract extension, Fluor will continue to support
DOE in the execution of the SPR’s life extension engineering and
construction efforts.
“We are pleased that the Department of Energy has confidence in our
performance and ability to deliver on the important work that is
underway on the SPR,” said Tom
D’Agostino, president of Fluor’s Government Group. “Fluor has a
strong legacy supporting our country’s national security objectives and
has a history as a prime contractor committed to our DOE customer. This
experience is fortified by Fluor’s 100-plus years in the oil and gas
industry and makes us well suited to enhance the critical mission of
securing and maintaining our nation’s energy reserves.”
The SPR is the world’s largest supply of emergency crude oil. The
federally owned oil stocks are stored in underground salt caverns in
Louisiana and Texas. Decisions to withdraw crude oil from the SPR are
made by the President of the United States. In an energy emergency, SPR
oil would be distributed by competitive sale. The SPR has been used in
these circumstances three times: in 1991 during Operation Desert Storm,
in 2005 after Hurricane Katrina, and in 2011 as part of an International
Energy Agency coordinated release to offset crude oil supply disruptions
due to Middle East unrest.
The SPR has conducted non-emergency sales of oil to respond to lesser
supply disruptions or to raise revenues. Most recently in 2017 and 2018,
the SPR conducted congressionally mandated oil sales to raise revenue
for the U.S. Treasury and to fund the SPR modernization program,
respectively.
About Fluor Corporation
Founded in 1912, Fluor
Corporation (NYSE: FLR) is a global engineering, procurement,
fabrication, construction and maintenance company that transforms the
world by building prosperity and empowering progress. Fluor serves its
clients by designing, building and maintaining safe, well executed,
capital-efficient projects around the world. With headquarters in
Irving, Texas, Fluor ranks 153 on the Fortune 500 list with
revenue of $19.5 billion in 2017 and has more than 56,000 employees
worldwide. For more information, please visit www.fluor.com
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Fluor CorporationMedia RelationsBrian Mershon, 469-398-7621orBrett Turner, 864-281-6976orInvestor RelationsJason Landkamer, 469-398-7222