DOE to privatize Bartlesville oil research lab
The U.S. Energy Department has reached an agreement with BDM-Oklahoma, its petroleum program management contractor, to privatize the government's principal oil research laboratory at Bartlesville, Okla.
The National Institute for Petroleum and Energy Research (Niper) is one of the government's longest-operating R&D institutions, dating to 1918.
DOE said the action will save taxpayers at least $25 million the next 5 years and permit more funding to go to petroleum research rather than to administrative overhead.
The privatization action meets one of the goals of DOE's Strategic Alignment Initiative, a reform and cost savings plan unveiled a year ago.
It also plans to transfer a federal environmental laboratory in Montana to private ownership and sell the federal share of the Elk Hills Naval Petroleum Reserve oil field in California.
Plan details
Under the privatization plan, BDM would move research staff from Niper to leased space at Phillips Petroleum Co.'s Bartlesville R&D center.
BDM will continue with DOE-sponsored oil research projects for the remaining 2 years of its management and operating contract with the agency while seeking other projects from the private sector and federal and state agencies.
DOE said the private research facility should be self-sustaining by November 1998, when DOE's contract with BDM expires.
DOE said about 85 of the 200 BDM scientists, engineers, and support employees will be moved to the Phillips facilities by October, 20 will be laid off, and the rest will remain at the federal site for shutdown and environmental cleanup activities.
The General Services Administration will consider offers from academic or other institutions interested in assuming ownership of some or all of the federal facility.
DOE plans to relocate the 23-person federal staff that manages the National Oil Program from offices at the federal site.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.