U.S. refiner Phillips 66 on Monday said it would buy crude from the U.S. Strategic Petroleum Reserve (SPR) after submitting a winning bid in an auction held earlier this month by the U.S. Department of Energy.
It was not immediately known which other companies submitted winning bids for the up to 8 million barrels of sweet crude being sold from the strategic reserves.
The sale is part of a resolution to sell up to $375 million of crude in fiscal 2017 to fund operational improvements to the infrastructure that holds the reserves. The Department of Energy Strategic Petroleum Reserve plans to sell approximately 8 million barrels of sweet crude oil from the Big Hill, Bryan Mound, and West Hackberry SPR sites.
A company spokesman declined to give further details on the purchase, including volume or price paid for the oil.
Deliveries are anticipated to take place beginning in March, with the potential for early deliveries in February, the Department of Energy previously said.
The oil will come from the Big Hill, Bryan Mound and West Hackberry sites along the Gulf Coast.