Swiss dealer wins tender to supply oil under BPS

BY THE GUARDIAN REPORTER

1st July 2013

A Geneva based oil trading firm Augusta Energy SA, has for the sixth time won a tender to supply petroleum products to Tanzania, under the country’s bulk-procurement system (BPS).

Tender number 12 which was opened on June 28 this month is worth USD 350 million at today’s price,” disclosed Orando de Costa, the Augusta Energy SA country representative.

The tender award report was confirmed by Michael Mjinja the Petroleum Importation Coordinator Ltd (PICL) General Manager.

De Costa said his company will supply 300,030 metric tons of petrol, diesel, kerosene and jet1 for delivery in August.

PICL issues a tender to import fuel every month. Previously the winning company was given a tender to import fuel every two months.

Six oil companies picked tenders but only five returned them, according to Mjinja. He did not mention the firm which pulled out.

He said this month’s bidding was very competitive as shown by the small margin between the price quotes in bids.

Mjinja said the bid which was selected quoted a lower price an indication of lower fuel prices come August.
Augusta Energy SA beat Gapco Tanzania Ltd, Vitol SA, Swiss Singapore Overseas Enterprise PTE Ltd and Glencore Energy UK Ltd after offering the lowest weighted average Premium against the rest.

Augusta Energy SA’s weighted average premium stood at 44.874, ranking number one, followed by GAPCO Tanzania LTD with weighted average premium of 45.444, ranking second.

Others are Vitol SA with weighted Average premium of 46.902 ranking third, Swiss Singapore Overseas Enterprise PTE Ltd with weighted Average premium of 48.900 ranking fourth and the fifth was Glencore Energy UK Ltd with weighted average Premium of 51.532.

The PICL General Manager said the bidding was conducted through the International Competitive Bidding, procedures specified in the Petroleum Act Cap 392, The Petroleum (Bulk Procurement) Regulation, 2013 (G.N. No. 59 of 2013) and the Petroleum (Bulk Procurement) System Implementation Manual, May 2012.

The PICL which coordinates bulk procurement of petroleum product on behalf of Oil Marketing companies in the country issued invitation for bids on June 20 this, year.
Augusta Energy SA is the only company that has won tender for more than five times. Previously it won tenders supplying petroleum products for two months as it had previous been agreed by the PICL.

In February this year, GAPCO Tanzania Ltd emerged winner of tender to supply petroleum products for the month.

Two foreign firms of Addax Energy SA and Augusta Energy SA won and supplied fuel for the seven previous tenders conducted in the year 2012 under the BPS.

Tanzania consumes more than 1.54 million cubic meters (407 million gallons) of petroleum annually, according to the Energy and Water Utilities Regulatory Authority. The country is also a transit hub for oil products that are shipped to nations in the region including the Democratic Republic of Congo, Rwanda, Burundi and Zambia. 

SOURCE: THE GUARDIAN