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US DOE Awards 500,000 Barrel SPR Crude Exchange to Vitol

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The US Department of Energy awarded a contract covering 500,000 barrels under its Strategic Petroleum Reserve crude exchange program to commodity trader Vitol, according to award information released Monday.

The award was made under a Request for Proposals seeking the exchange of up to 40 million barrels from the SPR.

As of June 22, the Department of Energy said Vitol had been awarded a contract covering 500,000 barrels.

The solicitation covers up to 40 million barrels of sour crude from the Strategic Petroleum Reserve's Bryan Mound and Big Hill sites. The DOE said offers will compete on overall value to the government.

DOE plans to supply 8 million barrels from Bryan Mound in July 2026 and another 7 million barrels in September 2026. Both exchange programs require a minimum return volume of 3 million barrels per month.

At Big Hill, DOE is offering 11 million barrels in August 2026 and 14 million barrels in September 2026. The associated return periods begin in 2027 and extend into 2028, according to the department.

DOE said bidders are responsible for securing sufficient pipeline and terminal capacity, adding that lower inventory levels could reduce delivery rates and require buyers to manage any resulting logistical constraints.

DOE said Strategic Petroleum Reserve crude includes a blend of domestic and international grades, including Isthmus, Urals, Alaskan North Slope, Arabian Light, Saharan and Dubai crude streams.

The agency requires returned crude to meet quality specifications and reserves the right to reject barrels that fail compatibility standards. Offerors must submit quality information 90 days before the return period begins.

DOE said that oils with elevated light-end gas content or vapor pressure could affect storage integrity and limit the reserve's ability to deliver oil when needed.

The minimum offer size stands at 3 million barrels for both pipeline and vessel deliveries. DOE said awards to a single bidder generally will not exceed 20 million barrels unless additional volumes remain available.

The notice did not disclose financial terms or delivery schedules for the Vitol award, nor did it mention whether additional awards may be made under the solicitation.

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