Fluor Subsidiary Gains U.S. Department of Energy Strategic Petroleum Reserve Management & Operating Contract Extension throug...
September 12 2018 - 3:31PM
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.
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Strategic Petroleum Reserve (Photo:
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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 or follow Fluor on
Facebook, Twitter, LinkedIn and YouTube.
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Fluor CorporationMedia RelationsBrian Mershon,
469-398-7621orBrett Turner, 864-281-6976orInvestor RelationsJason
Landkamer, 469-398-7222
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