Petron, Shell corner P7.1-B Napocor supply contracts

Oil majors Petron Corp. and Pilipinas Shell Petroleum Inc. cornered the P7.1-billion fuel oil supply contracts awarded by the National Power Corp. (Napocor) this week.

Based on data obtained from Napocor’s fuel management department, Petron bagged 18-month supply contracts for 15 delivery points equivalent to 676 million liters of fuel oil valued at P4.9 billion. This represents 60 percent of Napocor’s fuel oil requirements for the awarded period.

Shell won the supply contracts for seven delivery points covering 341 million liters of fuel oil worth P2.2 billion.

Caltex Phils. Inc. and Subic Bay Distribution Inc. also participated in the bidding but failed to bag any contracts. Biddings on five delivery points were declared failures.

This week’s bidding completes the three batches of auction the state-run power firm scheduled for its oil-based fuel requirements for 18 months starting July 1, 2001 to Dec. 31, 2003.

The first and third batches used Napocor’s electronic bidding system as part of the corporation’s thrust to expand the use of its internally-developed electronic procurement system.

Napocor OIC-president and chief executive officer Roland S. Quilala said the power firm’s use of the electronic bidding system allowed it to save around P910 million compared to the previous contracts.

"Our use of the electronic bidding system continues to give us significant savings in our procurement of big ticket items and allows us to keep our commitment to make the process transparent and competitive," Quilala said. – Donnabelle Gatdula