BPC in search of cheap oil, floats international tenders for first half of 2017 | 2016-10-20 | daily-sun.com

BPC in search of cheap oil, floats international tenders for first half of 2017

Sun Online Desk

20th October, 2016 03:35:36 printer

BPC in search of cheap oil, floats international tenders for first half of 2017

BPC is seeking 965,000 tonnes of 500 ppm sulphur gasoil, 120,000 tonnes of 180-centistoke high sulphur fuel oil and 90,000 tonnes of jet fuel, a tender document showed.

Bangladesh Petroleum Corp (BPC) has issued an international tender to import oil products as part of efforts to buy at cheaper rates by moving away from direct-term deals with suppliers of fuel products.

 

BPC is seeking 965,000 tonnes of 500 ppm sulphur gasoil, 120,000 tonnes of 180-centistoke high sulphur fuel oil and 90,000 tonnes of jet fuel, a tender document showed. The tender closes on Oct. 31 and is valid for 75 days to Jan. 13, 2017.

 

The buy tender is expected to further boost the Asian gasoil margins, which have gained momentum due to recent curbs in supply from several refineries undergoing maintenance in Asia, traders said. The delivery of the cargoes should be carried out in phases in the first half of 2017, a BPC official told Reuters news agency.

 

In February, BPC issued its first tender in 15 years to buy oil products, when it sought more than 11 million barrels of gasoil and jet fuel and managed to buy at lower rates than its term deals.

 

A shortfall in supplies of natural gas has forced the country to burn oil, a costlier option, to generate electricity. The state-owned firm is also in talks with 11 companies for refined oil product imports through term deals for the first half of next years, another BPC official said.

 

Bangladesh buys oil products through term deals from a number of national oil companies, including Kuwait Petroleum Corp, Malaysia's Petronas and Vietnam's Petrolimex.

 

BPC also buys 600,000 tonnes of Murban crude from Abu Dhabi National Oil Co and another 600,000 tonnes of Arab Light from Saudi Aramco annually for its sole refinery.


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