BPC to import 0.15m tonnes of fuel oil from Maldives by Dec
FHM Humayan Kabir | Friday, 8 August 2008
State-owned Bangladesh Petroleum Corporation (BPC) will import 0.15 million tonnes of refined petroleum oil from the Maldives by December to meet the country's requirement.
"We've already discussed with the state-owned company of the Maldives to supply 0.15 million tonnes of gasoline. It will supply the oil to Bangladesh during October-December period this year," said chairman of the BPC Anwarul Karim Thursday.
"We are awaiting approval of higher government authority. After that we will sign an agreement with the Maldives state-owned company to import the oil," he said.
The BPC will place a proposal on oil import before the economic affairs committee of the Bangladesh government on August 11 seeking waiver of a provision of the public procurement rules (PPR) 2008.
The Maldives National Oil Company Ltd (MNOC), a state-owned company, will supply 90,000 tonnes of diesel, 30,000 tonnes of Mogas oil and another 30,000 tonnes of Jet A-1 fuel to Bangladesh.
Bangladesh, a net oil importing country, has a demand for nearly 3.8 million tonnes per year. Out of the requirements, some 2.8 million tonnes are diesel and the remaining 1.0 million tonnes are other types of petroleum oil.
"The Maldives does not produce oil. It purchases crude from the international markets and refines those in another country under partnership deals. Then it sells the refined oil to other country like a trader," Mr. Karim said.
The premium of the diesel from the Maldives will be US$5.19 per barrel, $5.6 per barrel for Jet A-1 and $7.5 per barrel for Mogas oil, an energy ministry official said.
"As the Maldives is one of the members of the Islamic Development Bank, there is a possibility of obtaining fund from the Bank to import oil from the South Asian island state," the official said.
The IDB is one of the major fanciers for Bangladesh's oil import. The Jeddah-based lending agency provides nearly $1.0 billion credit to the BPC annually for repaying oil import bill from different countries.
Bangladesh's main oil supplier is Kuwait Petroleum Corporation (KPC), a state-owned company of the Kuwait and some other countries, including Saudi Arabia and United Arab Emirates.
The major oil exporter KPC supplies about 2.1 million tonnes of oil, including 1.6 million tonnes diesel. Bangladesh needs to pay $6.6 as premium per barrel for importing fuel from the KPC.
The BPC has projected a total demand for 3.7 million tonnes of fuel oil, which include 1.2 to 1.45 million tonnes of crude in calendar 2008.
"We've already discussed with the state-owned company of the Maldives to supply 0.15 million tonnes of gasoline. It will supply the oil to Bangladesh during October-December period this year," said chairman of the BPC Anwarul Karim Thursday.
"We are awaiting approval of higher government authority. After that we will sign an agreement with the Maldives state-owned company to import the oil," he said.
The BPC will place a proposal on oil import before the economic affairs committee of the Bangladesh government on August 11 seeking waiver of a provision of the public procurement rules (PPR) 2008.
The Maldives National Oil Company Ltd (MNOC), a state-owned company, will supply 90,000 tonnes of diesel, 30,000 tonnes of Mogas oil and another 30,000 tonnes of Jet A-1 fuel to Bangladesh.
Bangladesh, a net oil importing country, has a demand for nearly 3.8 million tonnes per year. Out of the requirements, some 2.8 million tonnes are diesel and the remaining 1.0 million tonnes are other types of petroleum oil.
"The Maldives does not produce oil. It purchases crude from the international markets and refines those in another country under partnership deals. Then it sells the refined oil to other country like a trader," Mr. Karim said.
The premium of the diesel from the Maldives will be US$5.19 per barrel, $5.6 per barrel for Jet A-1 and $7.5 per barrel for Mogas oil, an energy ministry official said.
"As the Maldives is one of the members of the Islamic Development Bank, there is a possibility of obtaining fund from the Bank to import oil from the South Asian island state," the official said.
The IDB is one of the major fanciers for Bangladesh's oil import. The Jeddah-based lending agency provides nearly $1.0 billion credit to the BPC annually for repaying oil import bill from different countries.
Bangladesh's main oil supplier is Kuwait Petroleum Corporation (KPC), a state-owned company of the Kuwait and some other countries, including Saudi Arabia and United Arab Emirates.
The major oil exporter KPC supplies about 2.1 million tonnes of oil, including 1.6 million tonnes diesel. Bangladesh needs to pay $6.6 as premium per barrel for importing fuel from the KPC.
The BPC has projected a total demand for 3.7 million tonnes of fuel oil, which include 1.2 to 1.45 million tonnes of crude in calendar 2008.