Report On Derailed National Oil Reserve Tender Rubbished

Report On Derailed National Oil Reserve Tender Rubbished

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TENDERING process to pick a company that will supply the country with the first consignment of white petroleum products for the National Strategic Petroleum Reserve (NSPR) is going on well despite allegations indicating the process may be derailed.
Permanent Secretary at the Ministry of Energy and Minerals, Eliakim Maswi told the 'Sunday News' during the week that there are allegations two partner companies have been shortlisted.
"Tanzania Petroleum Development Corporation (TPDC) board has not made any decision so far and therefore all that you are hearing is untrue. We are serious about the process," Mr Maswi said. Mr Maswi noted that once TPDC board makes a decision on the bidders, the public will be informed accordingly.
"The names listed in newspapers may not go through," he stressed. Recently, press reports claimed that two companies, Swiss-based Vitol and Oman Trading International (OTI) which came first and second respectively in the shortlist are actually joint venture companies.
Industry sources say Oman Shipping Company (OSC), OTI and Vitol signed a memorandum of understanding (MoU) to formulate a business partnership prior to bidding for the tender.
"The partnership provides for transportation requirements of OTI, mainly for the export of products out of Oman from Salalah Methanol Company and Aromatics LLC. This partnership was not disclosed during the tendering process as required by the law," sources claimed.
Twenty five companies submitted bids and they include Independent Petroleum Group of Bahama, Galawa Petroleum Limited, Prevail Technologies Tanzania, Trafigura Pte, Addax Energy SA Geneva and Augusta Energy SA of Switzerland amongst others.
Last March, TPDC floated the international tender seeking suppliers for white petroleum products for the NSPR for a whole year. TPDC Managing Director, Yona Killagane said the floating of the tender aims at stabilising the local petroleum market following lapses in delivery by oil marketing companies through bulk procurement.
Last year, the country suffered shortages of fuel more than thrice due to the reluctance of oil marketing companies to sell the commodity at pump stations, after a fall in indicative prices but also failure to meet bulk procurement system deadlines.
"We want to make sure that there is enough fuel for the country at all times by having some fuel at the NSPR," said Mr Killagane whose institution has been entrusted with the exercise. He dismissed fears that there is not enough storage facility for the NSPR pointing out that at Kigamboni based Tanzania Italian Petroleum Reserve (TIPER), the government has 50 per cent of the 350,000 cubic metres facility.
"We have already informed our partners Oryx about the government's intention to use part of the reservoir to store national fuel products," the TPDC Managing Director noted. In the tender invitation, TPDC said it is seeking a supplier for 51,000 metric tonnes of white petroleum products over twelve months.
"The Petroleum Act 2008 part VII Section 30 (3) mandates Tanzania Petroleum Development Corporation (TPDC) to establish and maintain National Strategic Petroleum Reserve," said the tender invitation.
The tender invitation further noted that bidding will be conducted through international competitive procedures as specified in the Public Procurement (goods, works, non-consultant service and disposal of public assets by tender) Regulations 2005, Government Notice No.97 and are open to all bidders as defined in the regulations.
 
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