DOE announces contract awards from the first sale of SPR crude
Seven companies have been awarded contracts for 10 million bbl of crude oil from the US Strategic Petroleum Reserve, the US Department of Energy announced on Mar. 10.
Atlantic Trading & Marketing Inc., BP Oil Supply Co., Marathon Petroleum Co., PetroChina International (America) Inc., Phillips 66 Co., Shell Trading (US) Co., and Valero Marketing & Supply Co. received the contract, DOE’s Fossil Energy Office said.
Of the 10 million bbl, 3 million bbl will be sold from the SPR’s Bryan Mound, Tex., site, 2.1 million bbl from the Big Hill, Tex., site, and 4.9 million bbl from the West Hackberry, La., site, it said. Deliveries will take place in May and June, with early deliveries in April accommodated to the maximum extent possible, FEO said.
A continuing federal budget resolution, which became law on Dec. 10, 2016, included a provision to allow DOE to sell as much as $375.4 million in crude from the reserve as the first tranche of oil sales designed to fund operational improvements to ensure the long-term infrastructure integrity under the SPR Modernization program, it said upon announcing the sale (OGJ Online, Dec. 15, 2016).
Contact Nick Snow at [email protected].
Nick Snow
NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.
