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DOE accepts bids for SPR crude

June 3, 1996

The U.S. Department of Energy has approved offers from three companies to buy 1.075 million bbl of Strategic Petroleum Reserve crude for more than $21 million. A recent budget law requires DOE to sell $227 million worth of oil, or about 12 million bbl, from the Weeks Island, La., storage site (OGJ, May 6, p. 44). DOE is decommissioning the site due to geologic problems that have compromised the cavern's structural integrity. Exxon Co. USA will buy 200,000 bbl for $19.65/bbl, Basis Petroleum

The U.S. Department of Energy has approved offers from three companies to buy 1.075 million bbl of Strategic Petroleum Reserve crude for more than $21 million.

A recent budget law requires DOE to sell $227 million worth of oil, or about 12 million bbl, from the Weeks Island, La., storage site (OGJ, May 6, p. 44). DOE is decommissioning the site due to geologic problems that have compromised the cavern's structural integrity.

Exxon Co. USA will buy 200,000 bbl for $19.65/bbl, Basis Petroleum Inc. 475,000 bbl for $19.61, and Coastal States Trading Inc. 400,000 bbl for $19.45.

The oil was sold in the second bid offering, after the first offering drew no acceptable bids. DOE plans a third offering this week and further rounds until $227 million worth is sold.