Monday, July 11, 2011

DOE Awards Strategic Petroleum Reserve Oil to 15 Companies.

July 11 (Bloomberg) -- The Energy Department awarded 28 contracts to 15 companies for the purchase of 30.64 million barrels of oil from the U.S. Strategic Petroleum Reserve, according to an e-mailed statement.

The Energy Department is coordinating with the companies, the Maritime Administration and the Department of Homeland Security to "streamline deliveries, including those for companies that have requested early delivery of the crude oil in July 2011," the government said.

About 25 million barrels of SPR crude were awarded for delivery by vessel. A buyer of the oil who wants to store it or send it to refineries on the East Coast may require a waiver of the Jones Act that restricts the shipment of goods between U.S. ports to American-flagged vessels, which are in short supply.

Refiners that were awarded oil included Valero Energy Corp., Tesoro Corp., Shell Trading Company, Sunoco Inc., Murphy Oil Corp. Marathon Petroleum Co., Exxon Mobil Corp., ConocoPhillips and BP Plc., according to a list on an Energy Department website.

Contracts were also granted to JPMorgan Chase & Co., trading companies Trafigura AG and Hess Energy Trading Co., and terminal and pipeline operator Plains All American Pipeline LP.

The companies were named on July 1 in a listing of "apparently successful" offers. The "offerors" were then required to provide a letter of credit within five business days as a guarantee of performance and payment, according to an Energy Department document outlining the sales process.

--Editors: Richard Stubbe, Charlotte Porterhttp

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