Winning offers in the ~$65-$67 range

The U.S. Department of Energy’s (DOE) Office of Fossil Energy announced on March 22 that it has awarded contracts to winning bidders in the recent Strategic Petroleum Reserve (SPR) crude oil sale.

DOE offered 6 MMBO from strategic reserves for competitive sale

On February 28, 2019, DOE’s Office of Fossil Energy issued a Notice of Sale for a price-competitive sale of six million barrels of SPR crude oil.  The DOE said 10 companies responded to the Notice of Sale, submitting 72 bids for evaluation.

DOE has awarded contracts to the following three companies:

  • Marathon Petroleum Corporation:          1.62 MMBO, $108,677,700
  • Motiva Enterprise, LLC:                             0.70 MMBO, $46,099,700
  • Phillips 66 Company:                                2.00  MMBO, $130,953,600

The awarded contracts represent a total sale of 4.32 million barrels of crude oil from the following locations:

  • 1.2 million barrels will be sold from the SPR’s Bryan Mound site
  • 1.51 million barrels from the Big Hill site
  • 1.61 million barrels from the West Hackberry site

The proceeds from this sale will be deposited into DOE’s Energy Security and Infrastructure Modernization Fund during FY 2019, according to the DOE. The DOE said that the SPR will schedule deliveries to take place in April and May of 2019. The Congressionally mandated sale was authorized under Section 404 of the Bipartisan Budget Act of 2015, which gives authority to the Secretary of Energy to draw down and sell up to $2 billion of SPR crude oil, for fiscal years (FYs) 2017 through 2020, to carry out an SPR modernization program.

 


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