1.4m tonnes crude oil to be imported in 2020

Bangladesh will import some 1.4 million tonnes of crude petroleum oil from Saudi Arabia and Abu Dhabi in the year of 2020, reports UNB.

Of the total amount, Saudi Arabian Oil Company (Saudi Aramco) will supply 700,000 tonnes of crude oil known as Arabian Light Crude (ALC) while Abu Dhabi National Oil Company (ADNOC) will supply the same quantity of crude oil known as Murban to state-owned Bangladesh Petroleum Corporation (BPC).

The Cabinet Committee on Public Purchase (CCPP) at a meeting with finance minister AHM Mustafa Kamal in the chair on Wednesday approved a proposal to this end.

As per the proposal, the total crude petroleum will cost approximately $775.308 million.

Of this, the 700,000 tonnes of ALC will cost $376.201 million while Murban $399.107 million. Each barrel of ALL crude oil was estimated to cost $68.77 while each barrel of Murban $70.51.

Briefing reporters on the issue, the finance minister said the import will start from the current month of January.

The BPC will import the entire bulk crude oil to refine it in its Eastern Refinery Limited (ERL) for supplying to the local market.

The Cabinet body also approved another proposal to import between 5.669 and 6.564 million tonnes of refined petroleum oil of different kinds through open international tender for the January-June period.

As per the proposal, the BPC will procure between 760,000 and 880,000 tonnes of diesel, 110,000 tonnes of Jet A-1, 40,000 tonnes of furnace oil and 30,000 tonnes of octane from different international suppliers.

The bulk refine petroleum fuel will cost around Tk 50 billion while premium was fixed at $2.33 for each barrel of diesel, $3.32 for each barrel of Jet A-1, US$24.98 per tonne of furnace oil and $5.43 per barrel of octane.

The committee approved the import of 30,000 tonnes of phosphorous acid for DAP fertiliser factory at a cost of Tk 871.2 million.

A proposal of the Power Division to procure 26,740 kms conductor, ACSR and Bare for a project of the Bangladesh Rural Electrification Board (BREB) at a cost of Tk Tk 1.5109 billion to expand the supply network in Dhaka, Mymensingh, Chattogram and Sylhet divisions also received the approval of the committee.