Fluor Corporation has reached an agreement to divest its portion of the Zhuhai fabrication yard in Guangdong province, China, to Offshore Oil Engineering (COOEC).
Fluor expects to receive approximately $122 million in proceeds from the transaction, which is scheduled for completion in the coming months.
Following the finalisation of the deal, COOEC will assume 100 per cent ownership of the facility.
Fluor said the yard will remain available to support the fabrication requirements of future projects and opportunities alongside other COOEC assets.
The divestment marks the end of a decade-long joint venture partnership. In August 2015, Fluor and COOEC formed COOEC Fluor Heavy Industries (CFHI) to own, operate, and manage the yard.
At the time of its formation, Fluor held a 49 per cent stake in the venture. Located in the Zhuhai Gaolan Port Economic Development Zone, the yard covers two million square metres and is designed to accommodate fabrication modules weighing more than 50,000 tonnes.