APTIM and BWX Technologies awarded $1.4bn contract to manage US Strategic Petroleum Reserve

The US Department of Energy has awarded a $1.4bn, five-year contract to a consortium led by APTIM for the operation of the Strategic Petroleum Reserve.

Share:

Comprehensive energy news coverage, updated nonstop

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 $/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

The United States Department of Energy has awarded a $1.4bn contract to Strategic Storage Partners, LLC, a joint venture led by APTIM in collaboration with BWX Technologies, Inc., to manage and maintain the Strategic Petroleum Reserve (SPR) and its related infrastructure located in Louisiana and Texas. The contract is set to begin on 15 June and will cover an initial period of five years, with an option for the Department to extend it for an additional five years.

Established to address emergency petroleum supply disruptions, the SPR is the world’s largest emergency crude oil stockpile, with a capacity of 714mn barrels. The storage facilities, located at four sites along the Gulf Coast, utilise underground salt caverns to contain the volumes. The reserve’s role is to mitigate potential disruptions to US oil supply and uphold commitments under the International Energy Program.

An operational mandate of high responsibility

The assignment entrusted to Strategic Storage Partners includes oversight of distribution systems, industrial safety management, and the maintenance of critical infrastructure. APTIM, a company specialising in technical and environmental services, will lead the operational direction, while BWX Technologies, a supplier of nuclear components and technical services to the US government, will contribute its complex engineering expertise.

Mark Fallon, Chief Executive Officer of APTIM and Chairman of the Board of Strategic Storage Partners, stated that the company was ready to mobilise its resources to ensure service continuity. “APTIM is honoured to serve the Department of Energy, the SPR teams and the nation in its mission to protect energy and economic security,” he said.

Extended contract at the core of energy security

Managing the SPR carries strategic importance for the United States, especially in a period of high volatility in oil markets. The contract terms include a performance clause allowing continuous evaluation to determine whether an extension is warranted after the initial term.

The last tender of this scale for the SPR dates back several years, underlining the relative operational stability of the reserve. This renewal of partnership signals a renewed focus on securing the logistical infrastructure of US energy assets, as national storage capacity continues to play a central role in federal crisis response planning.

Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.
Lycos Energy finalises the sale of its Alberta assets for $60mn, planning an immediate $47.9mn cash distribution to shareholders and the launch of a share buyback programme.
Russian oil output moved closer to its OPEC+ allocation in September, with a steady rise confirmed by Deputy Prime Minister Alexander Novak.
Fuel shortages now affect Bamako, struck in turn by a jihadist blockade targeting petroleum flows from Ivorian and Senegalese ports, severely disrupting national logistics.
McDermott has signed a memorandum of understanding with PETROFUND to launch technical training programmes aimed at strengthening local skills in Namibia’s oil and gas sector.
The example of OML 17 highlights the success of an African-led oil production model based on local accountability, strengthening Nigeria’s position in public energy investment.
ExxonMobil has signed a memorandum of understanding with the Iraqi government to develop the Majnoon oil field, marking its return to the country after a two-year absence.
Crude prices rose following the decision by the Organization of the Petroleum Exporting Countries and its allies to increase production only marginally in November, despite ongoing signs of oversupply.
Cenovus Energy modifies terms of its acquisition of MEG Energy by increasing the offer value and adjusting the cash-share split, while reporting record third-quarter results.
Hungarian oil group MOL and Croatian operator JANAF are negotiating an extension of their crude transport agreement as the region seeks to reduce reliance on Russian oil.
Rail shipments of Belarusian gasoline to Russia surged in September as Moscow sought to offset fuel shortages caused by Ukrainian attacks on its energy infrastructure.
Denmark is intensifying inspections of ships passing through Skagen, a strategic point linking the North Sea and the Baltic Sea, to counter the risks posed by the Russian shadow fleet transporting sanctioned oil.
Nicola Mavilla succeeds Kevin McLachlan as TotalEnergies' Director of Exploration, bringing over two decades of international experience in the oil and gas industry.
Sahara Group is making a major investment in Nigeria with seven new drilling rigs, aiming to become the country’s top private oil producer by increasing output to 350,000 barrels per day.
Senegal aims to double its oil refining capacity with a project estimated between $2bn and $5bn, as domestic demand exceeds current output.
Chevron is working to restart several units at its El Segundo refinery in California after a fire broke out in a jet fuel production unit, temporarily disrupting regional fuel supplies.
Ethiopia has begun construction of its first crude oil refinery in Gode, a $2.5bn project awarded to GCL, aimed at strengthening the country’s energy security amid ongoing reliance on fuel imports.

All the latest energy news, all the time

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3$/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.