Afran : Seven bid for Zambia 1.4 mln tonne oil supply tender
on 2010/1/16 12:02:59
Afran

20100115

LUSAKA (Reuters) - Seven foreign firms, including Kuwait's Independent Petroleum Group (IPG) have submitted bids to supply 1.4 million tonnes of petroleum feedstock to Zambia over two years, the procurement authority said on Friday.

The preferred cargo mixes for Zambia's Indeni Refinery and TAZAMA Pipeline operations and the Zambian market is a blend of standard export grade crude, naphtha or condensate and straight run gas oil, the tender document said.

The southern African country is the continent's top producer of copper and uses a lot of diesel in the mining operations that are the backbone of its economy.

IPG, whose deal for the supply of oil to Zambia expired last month, is competing with Lukoil International Trading and Supply Company (LITASCO) of Russia, Glencore Energy UK Ltd, Vitol SA, Trafigura SA, Addax Energy SA and Kenya's Gulf Energy Ltd.

"They are now given 21 days starting on Monday in which they should submit their evaluation and recommendations for award of contract," Shadreck Shawa, the head of purchasing at the Zambia Public Procurement Authority (ZPPA) said.

"We should be able to select the preferred bidder within a month because even if there are issues that will arise, these should be negotiated within two weeks," Shawa said.

The issues to be agreed with the winner would include the timeframe for the supply of the first cargo through the port of Dar-es-Saalam in Tanzania, the ZPPA said.

The 1,440,000 tonnes buyer's option will be brought in cargo lots of 60,000 to 90,000 tonnes at evenly spread intervals, according to tender specifications.

Shawa said BNP Paribas has given bid security amounting to $2 million each for IPG, LITASCO, Glencore, Vitol and Addax. Trafigura has a $2 million cover by ING Bank of Holland and Gulf Energy the same amount by PTA Bank.


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