APTIM and BWX Technologies have been awarded a $1.4bn contract by the US Department of Energy (DOE) to manage and operate the Strategic Petroleum Reserve (SPR).
The joint venture (JV), Strategic Storage Partners, will oversee SPR’s operations, facilities and systems in Louisiana and Texas for a five-year period, with an option for a five-year extension.
Strategic Storage Partners, formed by APTIM Federal Services and BWXT Technical Services Group, will focus on safely managing the SPR’s structures and systems.
The contract includes maintaining facilities, ensuring quality control and implementing innovative operational approaches.
APTIM CEO and chairman of the Strategic Storage Partners board of directors Mark Fallon said: “APTIM is honoured to serve the DOE, the talented and committed SPR workforce and the nation as the SPR fulfils its essential mission of protecting our energy and economic security. APTIM and our partner BWX Technologies will bring the experience, resources and commitment required to deliver.”
The estimated contract value is $2.6bn over ten years, including a five-year base period and a five-year extension option.
The SPR, claimed to be the world’s largest emergency crude oil supply with 714 million barrels (mbbl), aims to minimise US petroleum supply disruptions and support the International Energy Programme.
Federally owned oil stocks are stored in underground salt caverns at four sites along the Gulf Coast in Texas and Louisiana.
BWXT Technical Services Group president Heatherly Dukes said: “As a premier operator of complex, high-consequence facilities in the US and abroad, BWXT is honoured to join with APTIM in adding this mission to our portfolio of work for the Department of Energy.
“The Strategic Petroleum Reserve is a vital element in protecting our nation’s economic and security interests, and we look forward to bringing our expertise in safe, secure, high-quality operations to this vital part of the nation’s energy infrastructure.”
In July last year, the DOE purchased 4.65mbbl of crude oil for the SPR, bringing the total acquired since 2022 to more than 40mbbl.
This acquisition followed the Biden administration’s decision to drain the SPR in response to high prices after Russia’s invasion of Ukraine.
“APTIM, BWX secure $1.4bn contract to manage US Strategic Petroleum Reserve” was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
