The state-run Bangladesh Petroleum Corporation (BPC) has rejected the best bid from Singapore's MRI Trading for naphtha sell-off for early November loading.
Less-than-expected price and re-tender have been cited as the causes, a senior official said.
The corporation refused to accept the MRI bid in line with a decision from its board and issued re-tender for auctioning 170,000 barrels of heavy naphtha, a spin-off from crude refining.
"It has been done expecting to have a better price," said a senior BPC official.
Re-tendering for better price in naphtha sale is rare for BPC, the official added.
The Singaporean firm had offered a discount of US$3.33 per barrel to the Mean of Platts (MOPS) Singapore naphtha assessments, free on board (FOB).
And it happened to be highest bid of five others submitted in the previous tendering process, which was deferred by eight days from the original tender and closed on October 21.
BPC had to hold back the naphtha-sale tender by eight days due to non-availability of required quantity of naphtha from the refinery, the BPC official said.
As per re-tender the bid submission deadline is November 11, having validity until November 17. Supply- loading timeline is November 27-29, instead of previous loading over November 11-13.
The country's 1.5-million-tonne-annual-capacity Eastern Refinery Ltd, a wholly owned subsidiary of BPC, produces naphtha through crude refining for export.
BPC last sold an identical volume of naphtha to Vitol Asia for loading from Chittagong over August 16-18 at a premium of $1.32 per barrel to MOPS naphtha assessments, which had also witnessed delay in initial tender due to refinery issue.
azizjst@yahoo.com
Singapore co bid for buy rejected
FE Report | Published: November 06, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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