Dhaka set to pay lower than current term deals oil import tender
Published :Friday, 26 February, 2016, Time : 12:00 AM View Count : 18
SINGAPORE Feb 25 (Reuters) - Bangladesh Petroleum Corp (BPC) has received lower offers in a tender to buy over 11 million barrels of diesel and jet fuel for 2016 than in its current term deals, a senior official at the company said on Thursday. A total of 12 international oil and trading companies have been competing to win the first such tender from Bangladesh in 15 years, with middle distillate markets hit by oversupply across regions from Asia to Europe. The official, who declined to be identified, said those companies were Exxon Mobil, Trafigura, Emirates National Oil Co (ENOC), Essar Oil, Swiss Singapore, PetroChina , Vitol, Unipec, Glencore, Petronas, SK Energy and PTT. BPC invited companies to make offers on two potential deals, one labelled 'A' for 4.923 million barrels of gasoil with 0.05 percent sulphur content and 800,000 barrels of jet fuel. The 'B' deal was for the same standard and amount of gasoil with 600,000 barrels of jet fuel. Offers for gasoil in the A category ranged from $2.37 to $3.88 a barrel, with jet fuel at $3.54 to $4.70 a barrel, the official said, adding that the lowest offer came from ENOC. Those prices are premiums over Middle East quotes. He said that for the B deal, Unipec had made the lowest offer for gasoil and jet fuel at $2.57 and $3.06 a barrel respectively, followed by Glencore at $2.84 for gasoil and $3.74 for jet fuel. BPC has an existing first-half 2016 contract for a total of over 2 million barrels of gasoil sealed at an average premium of more than $4 a barrel.