How did Gunvor get contract to supply oil?

 

Dear Editor,
Looking at the Daily Mail dated 8th May 2012 “Oil dela sealed”, we noticed that Gunvor is said to be awarded the crude supply contract
It is true that Gunvor put the lowest bid as follows.
But anyone would be surprised to see a company offering gasoil CIF Dar es Salaam, at a lower price than Platts gasoil price FOB Arabian Gulf (gasoil spiked in Murban crude for Zambia always comes from Arabian Gulf region)  .
Herebelow are the FOB and CIF prices red out the day of the closing and the public opening of the tender.
Gunvor gasoil offer has a CIF price of 991.75 usd/mt, lower by 3.58 usd/mt when compared with the FOB price of 995.33 usd/mt
(995.33 usd/mt is the average Platts quotation for gasoil 0.05 for the month of February 2012, that bidders were asked to base their price on, and which most bidders have reported here below including Gunvor)
It shows that Gunvor bid is not feasible, unless some significant changes are made to the contract at negotiation stage.
For example having in the payment clause that the final invoice be computed on the basis of 110% of the BL quantities!
This would raise Gunvor price by about 96 usd/mt, making it the most expensive supply of below bidders’ list.



 

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