Trafigura wins Ethiopia's contract for Fuel imports selects Berbera Port

[Passenger]

Singapore’s Trifigura Scores Nation’s Petroleum Deal


Trafigura Pte, a Singaporean multinational commodity trader, won the bid to supply 1.4 million tonnes of petroleum with an estimated value of 22 billion Br for the coming year.

Trafigura was selected by the Ethiopian Petroleum Supply Enterprise (EPSE) after offering the least profit margin of 3.69 dollars a barrel for gas oil and 3.97 dollars a barrel for regular gasoline. It was competing with PetroChina International and Vitol Bahrain.

PetroChina International’s, the runner-up, margin of profit stood at 4.75 dollars a barrel for gas oil and 6.20 dollars a barrel for regular gasoline.

The dynamic nature of fuel prices in the international market obliged the bidders to present their respective offers by considering the global transportation fares and profit margins, according to Abayneh Awol, manager of Petroleum Supply & Sales and head of the bidding committee.

EPSE announced the tender for the procurement of 1.2 million to 1.5 million tonnes of gas oil and 280tns to 350tns of regular gasoline in September 2017.

About 34 international companies bought the bidding document, but only five submitted their financial and technical offers. During the technical evaluation stage, Afro Arab and ENOC were disqualified for not fulfilling the bidding requirements.

Trafigura, a company, established in 1993 and engaging in energy, oil, coal and gas, refining and marketing areas, will supply the fuel thrice a month in oil carrier ships with a capacity of carrying 40,000tns. The winning company will start supplying the fuel early January 2018 to the country’s central transitory depot at the Port of Djibouti.

The predecessor, PetroChina, which has been supplying oil and natural gas since 1990, had bagged last year’s contract.

After the arrival of the petroleum, the Enterprise will distribute the products to the 17 oil retail companies, which have 800 stations throughout the country. The retail is dominated by four companies namely National Oil Company (NOC), Yetebaberut Beherawi Petroleum (YBP), Oil Libya and Total.

Ethiopia consumes 3.8 million tonnes of petroleum annually, showing an increase of 10pc every year. Last year, the Enterprise imported 3.4 million tonnes of petroleum products valued at 1.7 billion dollars, while the preceding year’s import was 3.1 million tonnes with a total cost of 1.3 billion dollars.

In addition to this purchase, which is a partial procurement, the Enterprise will acquire the rest of the supply from Sudan and Kuwait in a government to government (G2G) deal arrangement.

BY YIBELTAL GEBREGZIABHER
FORTUNE STAFF WRITER

 

[Passenger]

Trafigura is a Singaporean giant. And wants to build biggest oil terminal in Berbera.

 

[FBIsomalia]

 

[Pipit]

 

[Awdalia Rising]

 

[Passenger]

It makes sense. Djibouti oil terminal is managed by the Chinese which are competitors to the Singaporea's Trafigura. The only other logical alternative is Berbera.


Berbera is winning.

 

[Odkac WRLD]

"Trafigura, a company, established in 1993 and engaging in energy, oil, coal and gas, refining and marketing areas, will supply the fuel thrice a month in oil carrier ships with a capacity of carrying 40,000tns. The winning company will start supplying the fuel early January 2018 to the country’s central transitory depot at the Port of Djibouti."

The winning company was Trafigura. "Will start supplying" implies work will be done in future, which indicates this article was written before Janurary 2018.

Which was nearly three years ago. I am assuming Trafigura will just do the work the previous bidder was doing in Djibouti. I see no mention of Berbera whatsoever.

Can I see another source?

 

[Awdalia Rising]

"Trafigura, a company, established in 1993 and engaging in energy, oil, coal and gas, refining and marketing areas, will supply the fuel thrice a month in oil carrier ships with a capacity of carrying 40,000tns. The winning company will start supplying the fuel early January 2018 to the country’s central transitory depot at the Port of Djibouti."

The winning company was Trafigura. "Will start supplying" implies work will be done in future, which indicates this article was written before Janurary 2018.

Which was nearly three years ago. I am assuming Trafigura will just do the work the previous bidder was doing in Djibouti. I see no mention of Berbera whatsoever.

Can I see another source?

berbera port isn’t finished. I think that’s the hold up

 

[Odkac WRLD]

berbera port isn’t finished. I think that’s the hold up

thanks for some context.

 

[Bernie Madoff]

This is big news if true

 

[Passenger]

Which was nearly three years ago. I am assuming Trafigura will just do the work the previous bidder was doing in Djibouti. I see no mention of Berbera whatsoever.

Can I see another source?

They got renewed the same contract. They been using Djibouti's Oil Terminal but it is managed by Chinese.

It seems they have come to the conclusion that Berbera is the best option for them going forward. They currently rent from Oman, but Oman is too far. So they want to completely relocate to Berbera which will give them cover all across East Africa.

 

[Crow]

It makes sense. Djibouti oil terminal is managed by the Chinese which are competitors to the Singaporea's Trafigura. The only other logical alternative is Berbera.


Berbera is winning.

It makes sense kulaha. The article in the OP doesn't mention Berbera or Somaliland at all. As someone else pointed out, the company has previously selected Djibouti. Your thread title (Trafigura wins Ethiopia's contract for Fuel imports selects Berbera Port) is a lie.

 

[Odkac WRLD]

It makes sense kulaha. The article in the OP doesn't mention Berbera or Somaliland at all. As someone else pointed out, the company has previously selected Djibouti. Your thread title (Trafigura wins Ethiopia's contract for Fuel imports selects Berbera Port) is a lie.

The winning company will start supplying the fuel early January 2018 to the country’s central transitory depot at the Port of Djibouti

The wording tells us this article was written before Jan 2018, which means it is nearly 3 years old.

No reference of Berbera, Somaliland, or Somalia either. Just that they beat China and Bahrain to win the Djibouti contract.

It is fine to make reasonable predictions but OP shouldn't have presented it as fact.

 

[Passenger]

It makes sense kulaha. The article in the OP doesn't mention Berbera or Somaliland at all. As someone else pointed out, the company has previously selected Djibouti. Your thread title (Trafigura wins Ethiopia's contract for Fuel imports selects Berbera Port) is a lie.

The Somaliland Gov't has just announced that Trafigura is taking over the oil terminal. And company has already started shipping its oil for storage in Berbera.

Obviously, what it looks like is that Trafigura has found issues with Djibouti and has found Berbera as the next logical base for its operations.

I know some people need to read in big bold letters. Probably you will be satisfied when they start the construction of expansion of Berbera's Oil Terminal.

 

[Passenger]

https://seawanderer.org/trafigura-t...-oil-terminal-to-become-a-regional-supply-hub

 

[Passenger]

Is this misleading now?

Someone asked for it.

Trafigura to invest in improving Berbera Oil Terminal to become a regional supply hub

Trafigura Group Pte Ltd. (“Trafigura”), a market leader in the global commodities industry, has this week delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade,

Industry and Tourism. This is the first step in a commitment by Trafigura to invest in Berbera Oil Terminal (“BOT”) facilities to position it as a gateway to serve customers within the country, and integrate oil logistics across the Horn of Africa.

Trafigura, with the full support of the Government, intends to upgrade BOT in a phased approach to improve and expand the storage capacity, and eventually facilitate the import of jet fuel and LPG to meet local and regional demand whilst ensuring international health and safety standards. Plans also include increasing the draft to enable larger vessels to be received and allow local traders more economical import of refined products and access to re-export markets. This will help support the Somaliland Government’s ambition to transform Berbera port as a strategic hub in a region where demand is growing year on year.

Mr. Mohamoud Hassan Saad, Minister of Trade Industry and Tourism, said:
“We’re delighted to be working with a leading independent, international company like Trafigura to improve the quality and reliability of refined petroleum product supply into the country. By working with Trafigura there will be increased transparency, high standards, and increased competitiveness across the supply chain.”

James Josling, Head of Africa Energy Trading for Trafigura, said:
“The agreement gives Trafigura access to the existing terminal for storage of refined petroleum products in order to supply the local market in a strategically important regionю We are working alongside the Government to reduce sulphur limits in the local fuel specifications, to give the opportunity for Somaliland to align product specifications with regional market standards such as Ethiopia and Djibouti, which will promote cross-border trade while improving air quality in line with Trafigura’s wider ESG agenda and commitment to Africa.”

 

[Passenger]

Moderators, please remove the tag 'misleading' from my previous post about this same topic. No need for your apology.

 

[Passenger]

From the horse's mouth.


https://www.trafigura.com/press-rel...h-the-support-of-the-government-of-somaliland

Trafigura to invest in improving Berbera Oil Terminal to become a regional supply hub with the support of the Government of Somaliland

Geneva, 7 September 2020 – Trafigura Group Pte Ltd. (“Trafigura”), a market leader in the global commodities industry, has this week delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism. This is the first step in a commitment by Trafigura to invest in Berbera Oil Terminal (“BOT”) facilities to position it as a gateway to serve customers within the country, and integrate oil logistics across the Horn of Africa.

Trafigura, with the full support of the Government, intends to upgrade BOT in a phased approach to improve and expand the storage capacity, and eventually facilitate the import of jet fuel and LPG to meet local and regional demand whilst ensuring international health and safety standards. Plans also include increasing the draft to enable larger vessels to be received and allow local traders more economical import of refined products and access to re-export markets. This will help support the Somaliland Government’s ambition to transform Berbera port as a strategic hub in a region where demand is growing year on year.

“We’re delighted to be working with a leading independent, international company like Trafigura to improve the quality and reliability of refined petroleum product supply into the country,” said Mr. Mohamoud Hassan Saad, Minister of Trade Industry and Tourism, “By working with Trafigura there will be increased transparency, high standards, and increased competitiveness across the supply chain.”

“The agreement gives Trafigura access to the existing terminal for storage of refined petroleum products in order to supply the local market in a strategically important region,” said James Josling, Head of Africa Energy Trading for Trafigura. “We are working alongside the Government to reduce sulphur limits in the local fuel specifications, to give the opportunity for Somaliland to align product specifications with regional market standards such as Ethiopia and Djibouti, which will promote cross-border trade while improving air quality in line with Trafigura’s wider ESG agenda and commitment to Africa.”

 

[Helios]

@Passenger was correct about Trafigura and SL working together, Trafigura has released a statement regarding the oil terminals

Geneva, 7 September 2020 – Trafigura Group Pte Ltd. (“Trafigura”), a market leader in the global commodities industry, has this week delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism. This is the first step in a commitment by Trafigura to invest in Berbera Oil Terminal (“BOT”) facilities to position it as a gateway to serve customers within the country, and integrate oil logistics across the Horn of Africa.

Trafigura, with the full support of the Government, intends to upgrade BOT in a phased approach to improve and expand the storage capacity, and eventually facilitate the import of jet fuel and LPG to meet local and regional demand whilst ensuring international health and safety standards. Plans also include increasing the draft to enable larger vessels to be received and allow local traders more economical import of refined products and access to re-export markets. This will help support the Somaliland Government’s ambition to transform Berbera port as a strategic hub in a region where demand is growing year on year.

“We’re delighted to be working with a leading independent, international company like Trafigura to improve the quality and reliability of refined petroleum product supply into the country,” said Mr. Mohamoud Hassan Saad, Minister of Trade Industry and Tourism, “By working with Trafigura there will be increased transparency, high standards, and increased competitiveness across the supply chain.”

Trafigura to invest in improving Berbera Oil Terminal to become a regional supply hub with the support of the Government of Somaliland

Trafigura Group Pte Ltd. has this week delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism.

www.trafigura.com

Great news

 

[SomaliMVP]

Who owns the terminal?