Unipec Singapore Pte and Vitol Asia are set to bag contracts from Bangladesh for supplying up to 1.27 million tonnes of fuel oil like diesel, jet fuel, furnace oil and octane during the first half of next year, officials said.
It would be fourth time in a row since February 2016 that they would supply the refined petroleum products to Bangladesh Petroleum Corporation (BPC), said an official at the BPC.
The official said the companies submitted best bid in response to an open tender for supplying the fuel during January-June period of 2018. The offer validity is for 75 days until January 26, 2018
Besides, five other international firms -- PetroChina, Emirates National Oil Company, Trafigura, Glencore and Gunvor -- also submitted bids, which were closed on Monday.
The BPC official said Unipec offered the best bid to supply 780,000-980,000 tonnes of diesel and 100,000 tonnes of jet fuel while Vitol Asia offered supplying 120,000-160,000 tonnes of furnace oil and 30,000 tonnes of octane.
Unipec has offered to supply 390,000-490,000 tonnes of diesel at a premium of $2.76 per barrel to Mean of Platts Arab Gulf (MOPAG) diesel assessments on a cost and freight (CFR) basis at Chittagong. It also offered to supply similar quantity of 390,000-490,000 tonnes of diesel at a premium of $2.42 per barrel.
For a combined 100,000 tonnes of jet fuel supply under two groups Unipec offered the best bid at a premium of $3.34 per barrel to MOPAG jet fuel assessments on CFR basis at Chittagong.
Vitol Asia has offered the best bid to supply 120,000-160,000 tonnes of furnace oil at a premium of $31.29 per tonne to MOPAG and 30,000 tonnes of octane at a premium of $4.47 per barrel to MOPAG octane assessments on CFR basis.
BPC is currently importing up to 1.06 million tonnes of diesel, jet fuel and furnace oil from Unipec and Vitol.
"We already sent our bid evaluation report to the board. It will then go to cabinet committee on public purchase for approval, before finally awarding the deals to suppliers," said the official.
The BPC board and the cabinet body usually honour the evaluation committee report in this regard, he added.
BPC imported 15,000 tonnes of octane from PT Bumi Siak Pusako Zapin (BSP) of Indonesia in March this year due to sudden rise in local demand.
Bangladesh didn't have to import gasoline in past two years as the domestic production was enough to meet the local demand.
BPC imported around 1.175 million tonnes of diesel, jet fuel and furnace oil combined under its second open tendering system during January-June, 2017 from Unipec and Vitol, said the official.
BPC has been importing refined petroleum products under both term deals and open tendering in line with a government decision last year.
Kuwait Petroleum Corporation (KPC) is the major term supplier of refined petroleum products to Bangladesh.
Other term suppliers of petroleum products to BPC included Malaysia's Petco Trading Labuan Company, Emirates National Oil Company, PetroChina Singapore, Chinese Zhenhua Oil Company Ltd, Petrolimex Singapore of Vietnam, Philippine National Oil Corporation, Indonesia's Bumi Siak Pusako, and Oman Trading International.
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