Fluor to Sell Oil Interests

As part of its new strategy to sell certain assets, Fluor Corp. announced Thursday it is selling its interests in 18 oil and gas production tracts in the Gulf of Mexico to Shell Offshore Inc., a subsidiary of the Shell Oil Co., for $80 million. The cash sale is expected to be completed before the end of Fluor's second quarter and will not result in any earnings gain or loss, the company said. Fluor retains an interest in 88 additional exploratory tracts in the Gulf of Mexico. "This sale reflects our previously announced strategic plan to reduce our equity position in certain natural resource assets," said Fluor's chairman and chief executive officer, David S. Tappan Jr., in a statement. "Cash proceeds from transactions such as this will be used for debt reduction and for other purposes which will improve the company's long-term earning power." Fluor interests in the tracts ranged from 7.4% to 9%.

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