RIYADH: The US Department of Energy said it awarded supply contracts to five companies to deliver 3.1 million barrels of crude oil to the Strategic Petroleum Reserve in August at an average price of $73 per barrel.
The DOE had announced the purchase plan in May to refill the emergency stockpile after a record release following Russia’s invasion of Ukraine last year.
“These 3 million barrels are being purchased for an average price of about $73 per barrel, lower than the average of about $95 per barrel that SPR crude was sold for in 2022, securing a good deal for taxpayers,” the DOE said in a press release.
Companies winning the awards were: Atlantic Trading and Marketing, Exxon Mobil Corp., Gunvor USA, Macquarie Commodities Trading and Sunoco Partners Marketing & Terminals.
The administration had previously said it would repurchase oil into the reserve when prices were at or below $72 per barrel.
The DOE said the barrels would be delivered to the Big Hill SPR site in Texas.
Argentina says Chevron to invest $500m in Vaca Muerta shale area
US-based oil major Chevron will invest over $500 million to develop the Trapial block in western Neuquen province, home to the massive Vaca Muerta shale basin, Argentina’s economy ministry announced on Friday.
According to a ministry statement, the announcement followed a meeting between Economy Minister Sergio Massa and company officials.
The new spending plan is scheduled to start before July, it added.
Last year, Neuquen officials granted Chevron a concession for shale production in the area, with what the company said at the time would be a pilot stage investment of about $80 million.
Trapial is a 109-square-mile block.
The Vaca Muerta shale formation is the world’s fourth-largest shale oil reserve and the second-largest for shale gas. It represents a significant source of domestic energy and foreign exports for the South American country.
(With input from Reuters)
