APTIM and BWX Technologies, Inc. Awarded $1.4 Billion Contract for Strategic Petroleum Reserve

Rhea-AI Summary

APTIM and BWX Technologies (BWXT) have secured a significant $1.4 billion contract from the US Department of Energy to manage and operate the Strategic Petroleum Reserve (SPR). The joint venture, operating as Strategic Storage Partners, , will begin managing SPR operations on June 15 for a five-year term, with potential for an additional five-year extension.

The SPR, currently holding 714 million barrels of emergency crude oil, represents the world's largest emergency oil supply. The reserve's facilities are strategically located in underground salt caverns across Texas and Louisiana's Gulf Coast. Its primary mission is to safeguard US petroleum supplies during emergencies and maintain the country's commitments to the International Energy Program.

Positive

• Secured major $1.4 billion government contract
• Long-term revenue visibility with 5-year contract and potential 5-year extension
• Strategic partnership with APTIM enhances market position in energy infrastructure

Negative

• None.

News Market Reaction

+11.71%

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+11.71% News Effect

On the day this news was published, BWXT gained 11.71%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

APTIM-led team awarded contract to manage and operate the US Department of Energy's Strategic Petroleum Reserve

BATON ROUGE, La., April 9, 2025 /PRNewswire/ -- APTIM and joint venture partner BWX Technologies, Inc. have been awarded a $1.4 billion contract by the US Department of Energy (DOE) to manage and operate the Strategic Petroleum Reserve (SPR), as well as its associated facilities and systems in Louisiana and Texas. The joint venture, known as Strategic Storage Partners, LLC, will assume management and operation of SPR on June 15 for a five-year period with an option for DOE to extend the contract for an additional five years.

"APTIM is honored to serve the DOE, the talented and committed SPR workforce, and the nation as the SPR fulfills its essential mission of protecting our energy and economic security. APTIM and our partner BWX Technologies will bring the experience, resources, and commitment required to deliver," said Mark Fallon, APTIM CEO and Chairman of the Strategic Storage Partners board of directors.

As the world's largest supply (714 million barrels) of emergency crude oil, SPR's mission is to minimize disruptions of US petroleum supplies through emergency stocks and uphold the country's commitment to the International Energy Program. Federally owned oil stocks are stored in underground salt caverns at four sites along the Gulf Coast in Texas and Louisiana, protecting the US during international oil shortages.

About APTIM

APTIM enhances the quality of the environment, wellbeing of people, resilience of communities, and opportunity for employees to make a difference, not just a living. A leading professional solutions firm, we specialize in environmental, sustainability, resilience, and infrastructure solutions. Our team of experts provide these integrated solutions for forward-thinking government agencies, commercial and industrial clients, and energy customers. Together, we create sustainable and resilient communities for all. Learn more at APTIM.com, and connect with us on LinkedIn, Facebook, Instagram, and X.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. A U.S.-based company, BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine and space exploration. With approximately 7,800 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. For more information, visit www.bwxt.com. Follow us on LinkedIn,  X, Facebook, and Instagram.

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SOURCE APTIM

FAQ

What is the value and duration of BWXT's Strategic Petroleum Reserve contract?

The contract is valued at $1.4 billion for a 5-year period, starting June 15, with an option for a 5-year extension.

How many barrels of oil does the Strategic Petroleum Reserve currently store?

The SPR currently stores 714 million barrels of emergency crude oil.

Where are the Strategic Petroleum Reserve facilities managed by BWXT located?

The SPR facilities are located in underground salt caverns across Texas and Louisiana's Gulf Coast.

What is the purpose of the Strategic Petroleum Reserve contract awarded to BWXT?

The contract is for managing and operating the SPR to protect US energy security during international oil shortages.