June 28, 2017 / 11:48 AM / a year ago

Unipec, Vitol win tender to supply oil products to Bangladesh

DHAKA, June 28 (Reuters) - Unipec and Vitol have won a tender to supply oil products to Bangladesh, two government sources with direct knowledge of the matter said on Wednesday.

Bangladesh Petroleum Corp was looking to buy up to 1.06 million tonnes of gasoil, jet fuel and fuel oil, for delivery in the second half of 2017, in a tender issued last month.

“Unipec and Vitol won the deal as they came up with the most competitive offers as per weighted average out of 11 companies that competed for the tender,” one official said.

Unipec - trading arm of Chinese state oil major Sinopec - offered to sell gasoil to Bangladesh at a premium of $2.27 to $2.47 a barrel to Middle East quotes, versus other offers at $2.47 to $4.65.

Unipec offered to sell jet fuel at a premium of $2.87 a barrel to Middle East quotes.

Bangladesh Petroleum Corp (BPC) also finalised term contracts with 10 companies for refined oil product imports in the second half of this year, mostly at lower premiums than the tender.

The premium for gasoil for the July to December period will be $2.20 a barrel over Middle East quotes, while BPC’s term contract for jet fuel was fixed at a premium of $2.80 per barrel over Middle East quotes.

As for fuel oil, Vitol gave the lowest offer at $29.73 a tonne to Singapore spot quotes for June-December delivery versus other offers ranging from $41.22 to $67.80.

BPC will pay the same premium as that offered by Vitol for its fuel oil through term arrangements.

Other companies that took part in the Bangladesh tender included Trafigura, Glencore, Emirates National Oil Co, Sinochem, PTT PCL, Gulf Petroleum and Swiss Singapore. (Reporting by Ruma Paul; Editing by Susan Fenton)

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