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.

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 nicks@pennwell.com.

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