The government will import 16 lakh metric tonnes of crude oil for Eastern Refinery Limited (ERL). For 2023,
Bangladesh Petroleum Corporation (BPC) will import the said quantity of oil from Saudi Arabia and Abu Dhabi spending Tk 14 thousand 359 crore 17 lakh 50 thousand .
It is said that a procurement proposal in this regard may be presented in the meeting of the Cabinet Committee on Government Procurement to be held under the chairmanship of the Finance Minister.
An agreement was signed between Saudi Arabia and BPC in 1994 regarding the supply of Arabian Light Crude (ALC). This Agreement Renewal Section states that unless either party gives written notice of termination 60 days prior to expiration, the Agreement will automatically be renewed for a subsequent one-year term.
According to sources, Marban and Arabian Light crudes are processed at ERL. BPC will import 7 lakh metric tonnes of Marban from Abu Dhabi and 9 lakh metric tonnes of Arabian Light Crude (ALC) crude from Saudi Arabia.
Currently, there is a shortage of fuel oil supply in the world market, price volatility and shortage of oil tankers. As a result, the prices of all types of energy products and shipping rates are increasing in the global market. In that regard, Eastern Refinery has submitted a demand letter to BPC for the year 2023.
According to the demand letter, the estimated ALC price per barrel of crude oil is estimated at $118.92 and Marban is estimated at $104.43 per barrel. Transportation of imported crude oil through Bangladesh Shipping Corporation (BSC) includes freight, lighterage charges and BSC 5 percent service charge on freight.
8 thousand 392 crore 8 lakh 30 thousand taka will be spent to import 9 lakh metric tons of ALC from Saudi Arabia. And 5 thousand 966 crore 34 lakh 50 thousand taka will be spent on importing 7 lakh metric tons from Abu Dhabi.
The total cost of importing 16 lakh metric tons of fuel oil will be 14 thousand 359 crore 17 lakh 50 thousand taka. The proposed import of Marban crude oil and Arabian light crude will be financed through International Islamic Trade Finance Corporation (ITFC) loans, cash and borrowings against BPC budget allocations.
