NEW YORK (Dow Jones)–Six waivers have been approved to allow some buyers of crude oil in the government’s emergency sale to use foreign-flag vessels to load the oil, according to the Department of Homeland Security.
Joanne Ferreira, a spokesman at the agency’s Customers and Border Protection unit, said four other waivers still are being reviewed.
On Monday, the government awarded contracts for 15 companies–including major refiners, trading houses and banks–to buy 30.64 million barrels of crude under an emergency sale from the Strategic Petroleum Reserve. The sale was part of a coordinated move among consumer nations in the International Energy Agency to place about 60 million barrels in the market by the end of August to help cover a short-fall in supply caused by the civil war in Libya.
In two previous sales, the government issued a blanket waiver from the Jones Act, the requirement that any ship carrying goods from port to port along the U.S. coast must be U.S.-made, and have a crew comprised predominately of U.S. citizens. Saying there were sufficient U.S. ships available, the government reversed a decision to again give a blanket waiver, and said it would consider waivers on a case-by-case basis within 48 hours of submission. Government officials wouldn’t release the names of companies which had requested or received waivers.
More than 25 million barrels of the oil sold, or 82%, will move by ship, while 18% will be delivered by pipeline, with just a single 150,000 parcel being delivered by barge, Energy Department data show. Schedules are still being arranged, but about 7 million barres of the crude could be shipped in July to buyers who requested early delivery, while the remainder would be delivered in August, a government source said.
-By David Bird, Dow Jones Newswires
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,058 members that receive our newsletter.
Have a news tip? Let us know.
An interim Court of Inquiry report reveals that a critical series of human errors involving the HMNZS Manawanui’s autopilot system led to the disaster. The Royal New Zealand Navy dive...
The U.S. Coast Guard has closed on the $125m fixed-price deal to acquire and convert icebreaking supply ship Aiviq from Offshore Surface Vessels LLC, part of Edison Chouest Offshore (ECO).
The USCGC Polar Star, America’s only heavy icebreaker, has departed Seattle for its annual Antarctic mission supporting Operation Deep Freeze (ODF), marking its 28th year in this critical role. The...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,058 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
