Related Stories By Dermitt Musalilwa Published: 20120514
Companies jostle for oil supply tender in Zambia

Lusaka - The Zambian government has shortlisted six international companies for the supply contract of petroleum products and crude oil to the Southern African nation, a senior government official has said.

The government earlier this year invited tenders for the supply of 1.4 million tonnes of oil after the expiry of a two-year supply contract with Glencore.

The six unnamed companies have been evaluated and submitted to the Zambia Public Procurement Authority (ZAPA) for final selection.

Two successful bidders are to be selected for the supply of finished petroleum products and crude oil, according to Energy, Mines and Water Development Permanent Secretary, George Zulu.

In a telephone interview from Lusaka on Wednesday, Zulu explained that, “We have scrutinised and evaluated the capacity of these companies and have since submitted to ZPPA for final consideration before picking two successful bidders, preferably by next week”.

Zambia seeks to import 1.4 million tonnes of commingled fuel, in addition to 216 million litres of diesel and 21 million litres of unleaded petroleum for the country’s consumption following the expiry of a contract with Glencore.

The minister said the government is satisfied with the transparent manner in which the bids were evaluated.

ZPPA’s board secretary, Justin Matimuna, could not be reached for comment on Wednesday to shed more light regarding the selection process.

Under the current arrangement, successful bidders are expected to deliver the first consignment of feedstock and finished petroleum products to Zambia through the port of Dar es Salaam, Tanzania, within a minimum of 90 days. The deliveries should be completed in 120 days.

All companies that bid for the supply of the consignments paid US$2 million as bid guarantee with their respective banks acting as guarantors for the supply of the products.

Companies that have submitted their bids include Mercury Energy Trading (South Africa), Agipol Africa Limited, Gunvor (South Africa), Crown Hill Investments Limited, KenolKobil Limited, Trafigura PTE Limited, Vitol SA, Independent Petroleum Group Company of Kuwait and Addax Energy SA.

Others are Independent Petroleum Group Company, Gapco Kenya Limited, Oryx Supply and Storage, Dalbit Petroleum Limited, Strauss Logistics, Agipol Africa Limited, Mocoh SA, Trafigura PTE Limited, Galana Petroleum Limited, Oilcom (T) Limited and Mogas International Limited.