BPC floats tender to import 13.45 lakh tonnes of refined oil

State-owned Bangladesh Petroleum Corporatizon (BPC) has floated tender to import up to 13 lakh 45 thousand tonnes of refined oil products during the time for next July to December. The tender submission last date is May 16, official said. 

According to BPC official, the oil products include 940,000-1,120,000 metric tonnes of 0.05 per cent sulphur gasoil (diesel), 110,000 metric tonnes of jet fuel, 60,000-100,000 metric tonnes of furnace oil, and 15,000 metric tonnes of octane.

The last date for selling tender document is May 15, bid submission deadline is May 16, and the offer validity will be until September 2. To take part in the bidding, the bidders must own refineries and its processing capacity must be at least 3 million tonnes per year. The satisfactory completion of export of petroleum products of minimum 2 million tonnes per year in at least 3 years. Annual turnover of the bidders must be of minimum $ 3 billion.

The bidders must have 5 years’ experience in the export of petroleum products. Besides the minimum amount of liquid asset of working capital facility must be $ 2 billion. 

The BPC intends to import the petroleum products under four groups, namely Group A, Group B Group C and Group D, on CFR (cost and freight) basis at Chattogram Port.

Under Group A, the total quantity to be supplied 480,000-510,000 tonnes of diesel, and 60,000 tonnes of Jet A-1 (jet fuel).

Under Group B, the total quantity to be supplied460,000-610,000 tonnes of diesel, and 50,000 tonnes of jet fuel. Under Group C, the total quantity to be supplied60,000-100,000 tonnes of furnace oil, and under Group D, the total quantity to be supplied 15,000 tonnes of octane. The oil suppliers will be able to submit bids either for any of the four, three, two or all the groups.

Bangladesh usually imports around 3.5 million tonnes of diesel, 2.0 million tonnes of furnace oil, 350,000 tonnes of jet fuel, and 30,000 tonnes of octane per year.

The state-run oil corporation sources around half of its refined oil products through open tender, and the remaining half through government to government (G2G) negotiations.

Unipec, Vitol and ENOC are the major suppliers of refined oil products to the BPC under tendering system. Currently, the organisation has term contracts with eight global oil suppliers to import refined oil products. The term suppliers of the BPC include Kuwait Petroleum Corp, 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, and Indonesia's BumiSiakPusako.

The government agency also imports annually around 700,000 tonnes of Murban crude from Abu Dhabi National Oil Co and around 700,000 tonnes of Arab Light from Saudi Aramco for its lone operational refinery - the Eastern Refinery Ltd. It has 1.50 million tonnes per year refining capacity, and is located in Chattogram.