Crude Oil Purchase

The Department of Energy's Strategic Petroleum Reserve Project Management Office seeks offers for a trial purchase of up to one million barrels of sweet crude oil produced in the United States. Offerors must specify the crude oil type and grade, delivery location, price, and other details on the offer form by June 1, 2020. Pricing will be determined based on daily NYMEX WTI futures settlements, with quality adjustments for any variances from specifications. Delivery schedules are due by June 18 for evaluation and award notification will occur by June 3, with finalized purchase agreements in place by June 10 for crude oil deliveries to SPR sites at Bryan Mound, Big Hill, and Bayou Choctaw between July 1-31, 2020.

There is no set-aside designated for this solicitation. Crude petroleum and natural gas NAICS code 211111 and PSC code 4810 will apply. Potential offerors are domestic crude oil producers capable of supplying one million barrels for delivery to SPR sites in Texas and Louisiana in July 2020. Final awards are expected to total up to one million barrels with a value dependent on market prices for sweet crude oil at the time of delivery.