A subsidiary of Fluor Corp. (NYSE: FLR) has won a potential 10-year, $1.46 billion contract to manage the country’s emergency oil inventory for the Energy Department.
Fluor Federal Petroleum Operations LLC will assume responsibility for managing and operating the Strategic Petroleum Reserve on Dec. 1, DOE said Wednesday.
The contract contains a five-year, $697 million base period and an option to extend for an additional five years, according to Fluor.
ASRC Petroleum Operations and Maintenance, Booz Allen Hamilton (NYSE: BAH) and MRIGlobal will serve as subcontractors.
Four sites along the coasts of Louisiana and Texas store nearly 727 million barrels of oil inside underground salt dome caverns and the president can decide to distribute that oil in the event major disruption to the country’s supply.
In June 2011, the president directed the release of 30 million barrels from the reserve due to political unrest in the Middle East.