20 Jan 2005

New company bids to manage American Samoa tank farm

11:13 am on 20 January 2005

A newly formed American Samoan company, Petroleum Services Inc., has submitted a proposal to manage and operate the government tank farm in Itulei.

Petroleum Services and the present operator BP Southwest Pacific are the only parties which have expressed an interest in running the tank farm.

One other US company had shown an interest but decided that the liabilities were too high and didn't submit a proposal

Petroleum services Inc is headed by Taulapapa Willie Sword, currently the tank farm manager for BP.

The American Samoa Petroleum Coop which comprises members of the oil companies, and government make a recommendation to the governor who makes the final decision on who gets the contract.

Because of stringent US Environmental Protection Agency and Coast Guard regulations, the current operator wants to charge significantly higher fees.

BP's contract expired on December 31st but is being extended on a monthly basis until a new contract is awarded.