October 26, 2002	Saturday	Sha’aban 19,1423

KARACHI, Oct 25: Shell Pakistan Limited (SPL) has awarded the firm and optional tender for local supplies of 120,000 tons of high sulphur fuel oil (HSFO) to Al-Raheem Trading and Hascombe Limited respectively for the period November-December, 2002.

For the firm demand of 60,000 tons, the lowest bid was received from Al-Raheem Trading ($15.50 per ton), while the second lowest bidder came from Hascombe Limited with a bid of $15.75 per ton. Gulf Pak Petroleum also offered a bid at $11.50 per ton plus a blending premium equivalent to five per cent of FOB. Thus on the current FOB cost their bid translates into $19.50 approximately.

The Ministry of Petroleum and Natural Resources has recently allowed traders to import fuel oil in Pakistan. Shell is the first company to introduce this kind of tender in the country whereas traders will import the product and will also provide the storage facility. Traders will act as a virtual refinery for the oil marketing companies, says a statement of the SPL.

Currently none of the OMCs has a major storage facility for fuel oil at Keamari. Even Pakistan State Oil (PSO) has a storage for fuel oil available at Zulfiqarabad Oil Terminal (ZOT).

The Petroleum Ministry has allowed traders to import fuel oil and use Keamari as an alternative to Port Qasim and thus traders will now have an opportunity for supplying fuel oil to the Water and Power Development Authority (Wapda).

Wapda has started its import of fuel oil and for this purpose a tender was initiated and was participated in by major traders.