BWXT Joint Venture Awarded Strategic Petroleum Reserve Contract
BWX Technologies (NYSE: BWXT) and APTIM Federal Services have formed Strategic Storage Partners, to manage and operate the U.S. Strategic Petroleum Reserve. The contract, valued at approximately $2.6 billion over 10 years, includes a five-year base period and a five-year option.
The scope encompasses operating and maintaining the reserve's facilities and systems, implementing quality control measures, and developing innovative operational approaches. The Strategic Petroleum Reserve, with an authorized storage capacity of 714 million barrels, is the world's largest emergency crude oil supply, stored in underground salt caverns across Louisiana and Texas sites.
The reserve serves as a important component in protecting U.S. economic and security interests, particularly during petroleum supply disruptions and fulfilling International Energy Program obligations.
BWX Technologies (NYSE: BWXT) e APTIM Federal Services hanno creato Strategic Storage Partners, per gestire e operare la Riserva Strategica di Petrolio degli Stati Uniti. Il contratto, del valore di circa 2,6 miliardi di dollari per 10 anni, include un periodo base di cinque anni e un'opzione di cinque anni.
Il campo d'azione comprende l'operazione e la manutenzione delle strutture e dei sistemi della riserva, l'implementazione di misure di controllo qualità e lo sviluppo di approcci operativi innovativi. La Riserva Strategica di Petrolio, con una capacità di stoccaggio autorizzata di 714 milioni di barili, è la più grande fornitura di petrolio d'emergenza al mondo, immagazzinata in cavità saline sotterranee in siti della Louisiana e del Texas.
La riserva rappresenta un componente importante nella protezione degli interessi economici e di sicurezza degli Stati Uniti, in particolare durante le interruzioni dell'offerta di petrolio e per il rispetto degli obblighi del Programma Energetico Internazionale.
BWX Technologies (NYSE: BWXT) y APTIM Federal Services han formado Strategic Storage Partners, para gestionar y operar la Reserva Estratégica de Petróleo de EE. UU. El contrato, valorado en aproximadamente 2.6 mil millones de dólares por 10 años, incluye un período base de cinco años y una opción de cinco años.
El alcance abarca la operación y el mantenimiento de las instalaciones y sistemas de la reserva, la implementación de medidas de control de calidad y el desarrollo de enfoques operativos innovadores. La Reserva Estratégica de Petróleo, con una capacidad de almacenamiento autorizada de 714 millones de barriles, es la mayor reserva de petróleo de emergencia del mundo, almacenada en cavernas de sal subterráneas en sitios de Luisiana y Texas.
La reserva sirve como un componente importante en la protección de los intereses económicos y de seguridad de EE. UU., especialmente durante las interrupciones del suministro de petróleo y en el cumplimiento de las obligaciones del Programa Internacional de Energía.
BWX Technologies (NYSE: BWXT)와 APTIM Federal Services는 미국 전략 석유 비축을 관리하고 운영하기 위해 Strategic Storage Partners를 결성했습니다. 이 계약은 약 26억 달러의 10년 계약으로, 5년의 기본 기간과 5년의 선택권을 포함합니다.
범위는 비축의 시설과 시스템을 운영 및 유지 관리하고, 품질 관리 조치를 시행하며, 혁신적인 운영 접근 방식을 개발하는 것을 포함합니다. 전략 석유 비축은 7억 1400만 배럴의 허가된 저장 용량을 가지고 있으며, 세계에서 가장 큰 비상 원유 공급으로, 루이지애나와 텍사스의 지하 소금 동굴에 저장되어 있습니다.
이 비축은 미국의 경제 및 안보 이익을 보호하는 중요한 요소로 작용하며, 특히 석유 공급 중단 시와 국제 에너지 프로그램 의무를 이행하는 데 기여합니다.
BWX Technologies (NYSE: BWXT) et APTIM Federal Services ont formé Strategic Storage Partners pour gérer et exploiter la Réserve stratégique de pétrole des États-Unis. Le contrat, d'une valeur d'environ 2,6 milliards de dollars sur 10 ans, comprend une période de base de cinq ans et une option de cinq ans.
Le champ d'application comprend l'exploitation et l'entretien des installations et des systèmes de la réserve, la mise en œuvre de mesures de contrôle de la qualité et le développement d'approches opérationnelles innovantes. La Réserve stratégique de pétrole, avec une capacité de stockage autorisée de 714 millions de barils, est la plus grande réserve d'urgence de pétrole brut au monde, stockée dans des cavernes de sel souterraines à travers des sites en Louisiane et au Texas.
La réserve constitue un élément important pour protéger les intérêts économiques et de sécurité des États-Unis, notamment en période de perturbations de l'approvisionnement en pétrole et pour respecter les obligations du Programme énergétique international.
BWX Technologies (NYSE: BWXT) und APTIM Federal Services haben Strategic Storage Partners gegründet, um die strategische Erdölreserve der USA zu verwalten und zu betreiben. Der Vertrag, der auf etwa 2,6 Milliarden Dollar über 10 Jahre geschätzt wird, umfasst einen fünfjährigen Basiszeitraum und eine fünfjährige Option.
Der Umfang umfasst den Betrieb und die Wartung der Einrichtungen und Systeme der Reserve, die Implementierung von Qualitätskontrollmaßnahmen und die Entwicklung innovativer Betriebsansätze. Die strategische Erdölreserve, mit einer genehmigten Speicherkapazität von 714 Millionen Barrel, ist die weltweit größte Notfallversorgung mit Rohöl, die in unterirdischen Salzkuhlen in Louisiana und Texas gelagert wird.
Die Reserve ist ein wichtiger Bestandteil zum Schutz der wirtschaftlichen und sicherheitspolitischen Interessen der USA, insbesondere während Störungen der Erdölversorgung und zur Erfüllung der Verpflichtungen des Internationalen Energieprogramms.
- Secured major $2.6 billion government contract over 10 years
- Partnership with APTIM Federal Services strengthens market position in energy infrastructure
- Expands DOE contract portfolio with strategic national security asset
- Contract subject to modification or termination risks
- Revenue realization dependent on contract performance and option renewal
Insights
This $2.6 billion Department of Energy contract represents a strategically significant win for the BWXT joint venture, though with several important nuances for investors to consider.
The contract structure reveals important details: APTIM Federal Services is explicitly named as the lead parent company in this venture, positioning BWXT as the secondary partner. This suggests BWXT will receive only a portion of the headline $2.6 billion figure over the decade-long period. Without disclosure of the revenue-sharing arrangement, investors should exercise caution in projecting financial impact.
The contract follows the standard government pattern of a five-year base period plus one five-year option. This structure means only the initial period is guaranteed, with extension contingent on performance and continued government prioritization. The option period introduces uncertainty that tempers the long-term revenue visibility.
What makes this win notable is the Strategic Petroleum Reserve's designation as a high-consequence facility requiring sophisticated operational expertise. This aligns with BWXT's existing capabilities managing complex DOE facilities, potentially strengthening their position for future high-security government contracts.
The operational focus on maintenance and quality control suggests this is likely a lower-margin but stable revenue stream compared to technology development or manufacturing contracts. For BWXT's contract portfolio, this adds governmental diversity without fundamentally altering their business model.
The Strategic Petroleum Reserve (SPR) represents critical national energy infrastructure, with BWXT now gaining partial operational responsibility for the world's largest emergency crude oil stockpile. This government facility, holding up to 714 million barrels of crude oil across underground salt caverns in Louisiana and Texas, serves as a crucial buffer against global supply disruptions.
The operational scope focuses primarily on maintaining existing infrastructure rather than expansion, encompassing the complex engineering challenges of managing pressurized underground storage caverns. This requires specialized expertise in safety systems, monitoring technology, and emergency preparedness protocols that complement BWXT's experience with high-consequence facilities.
This contract positions BWXT within the energy security sector, diversifying beyond their core nuclear operations. However, the joint venture structure with APTIM as lead partner likely means BWXT will provide targeted technical support rather than full operational control, potentially limiting both revenue share and operational risk exposure.
From a business development perspective, this represents incremental diversification rather than transformative growth. The relatively stable, maintenance-focused nature of SPR operations should provide predictable, if modest, contribution to BWXT's financial results. The technical capabilities demonstrated through this contract could strengthen BWXT's credentials for other critical infrastructure management opportunities in adjacent sectors.
Strategic Storage Partners, LLC was formed by lead parent company APTIM Federal Services and BWXT Technical Services Group, Inc. to safely manage and operate the structures and systems of the Strategic Petroleum Reserve. The estimated value of the contract is approximately
The scope of the contract includes operating and maintaining the Strategic Petroleum Reserve’s facilities and related systems, maintaining the highest levels of quality control, developing and implementing innovative approaches to site operations, and adopting practices fostering continuous improvement.
“As a premier operator of complex, high-consequence facilities in the
With an authorized storage capacity of approximately 714 million barrels, the Strategic Petroleum Reserve is the world's largest supply of emergency crude oil and was established primarily to reduce the impact of disruptions in supplies of petroleum products and to carry out obligations of
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing, impact and value, to the extent contract value can be viewed as an indicator of future revenues, of the contract to manage and operate the Strategic Petroleum Reserve, future work at the Strategic Petroleum Reserve, and the award or exercise of any contract options or orders. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and delays. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2024, and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. A
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Media Contact
John Dobken
Senior Manager, Media & Public Relations
202.428.6913
jcdobken@bwxt.com
Investor Contact
Chase Jacobson
Vice President, Investor Relations
980.365.4300
investors@bwxt.com
Source: BWX Technologies, Inc.
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