BP and Noble to sell into US SPR

OREANDA-NEWS. April 10, 2015. The US Department of Energy will purchase nearly 4.20mn bl of sweet crude expected to be delivered to the US Strategic Petroleum Reserve (SPR) by the end of July.

The contracts were awarded to BP for 2,197,500 bl and to Noble for 2mn bl for delivery to the Brian Mound SPR site in Freeport, Texas.

The government is using \\$239.2mn in funds from a test sale held last year to buy oil for the SPR and is required to replace test sale volumes within a year as funds allow.

Offers into the purchase were to be made against Nymex WTI and Argus LLS pricing. The US government purchase program was to buy up to 5mn bl of oil. Cost and technical details of the sale were not immediately available.

The US SPR holds 691mn bl of oil in four sites located in Louisiana and Texas.