Strategic Storage Partners Lands $1.4B DOE Contract for Strategic Petroleum Reserve Management

The Department of Energy has awarded Strategic Storage Partners a five-year, $1.4 billion contract to manage and operate the Strategic Petroleum Reserve, or SPR.

The DOE said Thursday, the contract covers operation and maintenance services for the four SPR facilities and systems in Louisiana and Texas.

Management and Operation Contract Details

Under the contract, Strategic Storage partners will go through a transition period and gain full operational control of the SPR facilities on June 15. After the five-year period of performance, the DOE has the option to extend the contract for another five years.

What Is the Strategic Petroleum Reserve?

The SPR is an emergency stockpile of crude oil owned by the U.S. government. It is intended to protect the nation from the impact of oil shortages and other disruptions to the petroleum supply. This is done by acquiring, storing, distributing and managing the oil reserves while ensuring obligations under the International Energy Program are met.

Petroleum stocks are stored in underground salt caverns at the Texas and Louisiana facilities. Each SPR facility can store up to 714 million barrels of crude oil.

Fluor Federal Petroleum Operations was previously responsible for the management and operations of the SPR facilities. It was initially awarded a $1.46 billion contract in 2013 and a $2 billion extension in 2018.

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