IOC nears first deal to export fuel to Bangladesh

05 Jun 2020 10:05 AM
Indian Oil Corp, the country's top refiner, is near to winning its first contract to supply diesel, jet fuel and gasoline in the next half of this year to state-run Bangladesh Petroleum Corp, two sources with knowledge of the matter said.

IOC mostly stays from participating in the word tenders for fuel exports as the refiner sells most of its fuel in the neighborhood market, besides supplying its retail outlets in Nepal and Bhutan.

"Now (the) scenario differs, demand is falling so IOC could have some spare products to export," said one of the sources.

BPC had sought bids for imports of 870,000 tonnes of gasoil with sulphur content of no more than 500 parts per million (ppm), 120,000 tonnes of jet fuel, 20,000 tonnes of 180-centistoke high sulphur fuel oil and 30,000 tonnes of 95-octane gasoline in a tender issued this month.

IOC emerged as a lowest bidder for way to obtain up to 430,000 tonnes of diesel and 50,000 tonnes of jet fuel during July-December and 30,000 tonnes of gasoline through two equal size parcels in August and November, both sources said.

Seven companies took part in the tender. For the very first time, Indian Oil Corp and Puma Holding participated in the tender, a source at BPC said.

Other participants were Petrochina, China's Unipec, Emirates National Oil Co, Thailand's PTT, and trader Vitol, the source added.

Indian Oil Corp put premiums to Middle East quotes of $2.60 a barrel for diesel and $4.48 for gasoline 95, both sources said.

IOC did not respond to a Reuters email seeking comment.

"Currently we are evaluating their offers. After verifying all details, we will send the proposal for the Board's approval," Abu Hanif, senior general manager (commercial & operation) at BPC said, without elaborating.