Two term contracts signed with Gulf Petrochem

Thursday, 16 August 2018 00:45 - - {{hitsCtrl.values.hits}}

The Ceylon Petroleum Corporation this week received Cabinet approval to sign contracts to purchase petroleum products for a period of 10 months.

The Petroleum Ministry, presenting the Cabinet paper, sought approval to sign term contracts with Gulf Petrochem FZC, UAE, to import gas oil 0.001% (max sulphur) and (0.05% max sulphur) and gasoline 92Unl and 95Unl.

The Ministry received only three bidders for the two tenders announced, including the lowest bid from Petrochem FZC.

Accordingly, the Cabinet gave approval to sign a term contract to import of 472,500Bbls of gas oil (0.001% max sulphur) at the premium of $ 2.380 per Bbl, and 1170,000Bbls of gas oil (0.05% max sulphur) at a premium of $ 2.290 and 1,219,500Bbls of gasoline (92Unl) at $ 4.830 and the interest rate of 1.05% plus six months LIBOR.

The contract is awarded under the 180 days payment basis of for a period of 10 months from September 2018 to June 2019.

Approval was given to award another 10-month contract to the same company for the procurement of 1,537,500Bbls of gas oil (0.05% max sulphur) at $ 2.230 per Bbl, 2,251,000Bbls gasoline (92Unl) at $ 2.730 per Bbl, and 903,500Bbl of gasoline (95Unl) $ 3.050 at the interest rate of 1.05% plus six months LIBOR.