By
Lenie Lectura - July 23, 2018
THE Philippine National
Oil Co.-Exploration Corp. (PNOC-EC) has issued a bid invite for the purchase of
diesel oil for one year.
“PNOC, as buyer,
intends to purchase Philippine Standard Euro 4 50ppm gas oil or diesel
fuel,” it stated in a letter of intent.
The company is seeking
sellers for a trial shipment of 50,000 metric tons (MT) with subsequent
shipments of four per month for one year. The PNOC-EC has identified the Subic
Bay Freeport as the port of destination. The first delivery is
expected within 15 days after signing of the contract.
The PNOC-EC has set as
deadline 5 p.m. on July 27, 2018, for the submission of proposals. Later offers
will not be accepted, it said.
The seller should be in
the business of trading and supply of petroleum for at least three years and
has completed the supply of petroleum of a minimum of three shipments for the
last six months of at least 50,000 MT per shipment anywhere in the world. The
seller must have capitalization, credit line or firm bank commitment to finance
the contract.
Two sealed envelopes
shall be submitted to the PNOC-EC through the bids and awards committee. The
first envelope must be labeled “corporate documents” that will
include the legal, financial and technical requirements pertaining to the
seller.
The second envelope,
labeled “soft corporate offer,” shall include the terms of the offer,
such as payment term, delivery schedule, validity of the offer, product
specifications, country of origin, port of landing, proposed price of Euro 4
diesel in US dollars per MT, delivery terms, performance security, board
resolution and undertaking that the seller shall follow the rules.
The PNOC-EC did not say
if the seller is limited to Filipino firms or if foreign firms can participate.
But this move is in
line with an announcement from Malacañang in May that the Duterte
administration was considering to import fuel from countries that are not
members of the Organization of the Petroleum Exporting Countries, such as
Russia, as a means to alleviate what was then an upward trajectory of prices.
The Department of
Energy (DOE) was then expecting to secure an initial shipment of lower-priced
diesel from abroad last month, with first shipment expected to take place by
the end of June. Initially, a volume of 240,000 MT representing three
days’ worth of consumption was discussed.
Energy Secretary
Alfonso G. Cusi said then the PNOC-EC was negotiating for at least three
locations: Subic in Zambales, Phividec in Misamis Oriental and in Quezon
province.
The planned purchase is
a way for the country to develop its own strategic reserve amid spiraling
prices of petroleum products here and abroad.
“We need to have a
strategic supply because our oil industry is deregulated The private sector is
required to have 15 days’ supply of refined products and 30 days’ supply of
crude oil. We are concerned that we would be affected should there be a
disruption in supply. That is why the government is developing a strategic
reserve,” Cusi had said.
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