ConocoPhillips, Gas del Caribe top fuel tender bidders - Honduras
US oil major ConocoPhillips (NYSE: COP) and Mexico's Gas del Caribe were the best ranked bidders for Honduras' international fuel supply tender, a government official involved in the process confirmed to BNamericas.ConocoPhillips will supply supreme and regular gasoline as well as diesel, while Gas del Caribe will supply LPG. The first shipments are due to arrive early next year.
The government did not award contracts to supply kerosene, jet fuel and bunker. The government is due to make a decision within 45 days as to how these fuels will be supplied.
This year's supreme gasoline use will reach more than 2.3Mb, regular gasoline 561,132b diesel 5Mb, LPG 1Mb and kerosene, jet fuel and bunker together 6Mb.
Through an international bidding process, the government aimed to ensure the long-term supply of low-priced fuels through a competitive process and break a private monopoly business dominated by oil distributor Esso and oil majors Shell (NYSE: RDS-B) and Texaco. The country's fuel bill this year is expected to reach US$1.1bn.
The government is due to inform these three companies in the coming days of the last day they will be able to import fuel.
The government plans on renting the three companies' infrastructure - as well as that of local oil importer and distributor Dippsa - to store the imported fuels.
Sarai Silva, head of Honduran oil products distributors' association AHDIPPE, told BNamericas previously the process is "an opportunity for the country to correct and above all generate competition at the import level as this part has practically been managed by an oligopoly."
Thirteen groups had submitted offers to supply all or part of the different fuels, among them Dutch oil trader Trafigura Beheer in association with Dippsa.
Dippsa president Henry Arévalo Fuentes told BNamericas they will ask the government to review offers alleging errors in the process such as that involving bunker fuel for power generation.
There was no winner for the bunker fuel contract because power generation companies reported that the fuel offered by companies contained more sulfur than their equipment required.
The government did not award contracts to supply kerosene, jet fuel and bunker. The government is due to make a decision within 45 days as to how these fuels will be supplied.
This year's supreme gasoline use will reach more than 2.3Mb, regular gasoline 561,132b diesel 5Mb, LPG 1Mb and kerosene, jet fuel and bunker together 6Mb.
Through an international bidding process, the government aimed to ensure the long-term supply of low-priced fuels through a competitive process and break a private monopoly business dominated by oil distributor Esso and oil majors Shell (NYSE: RDS-B) and Texaco. The country's fuel bill this year is expected to reach US$1.1bn.
The government is due to inform these three companies in the coming days of the last day they will be able to import fuel.
The government plans on renting the three companies' infrastructure - as well as that of local oil importer and distributor Dippsa - to store the imported fuels.
Sarai Silva, head of Honduran oil products distributors' association AHDIPPE, told BNamericas previously the process is "an opportunity for the country to correct and above all generate competition at the import level as this part has practically been managed by an oligopoly."
Thirteen groups had submitted offers to supply all or part of the different fuels, among them Dutch oil trader Trafigura Beheer in association with Dippsa.
Dippsa president Henry Arévalo Fuentes told BNamericas they will ask the government to review offers alleging errors in the process such as that involving bunker fuel for power generation.
There was no winner for the bunker fuel contract because power generation companies reported that the fuel offered by companies contained more sulfur than their equipment required.