Petron, Shell eye DND fuel supply contract

MANILA, Philippines - Two companies have expressed interest to join the bidding for the supply of the fuel requirements of the Defense department and the military for the next four years.

The STAR learned that Petron Corp. and Pilipinas Shell Petroleum Corp. have bought bid documents for the project which has an approved budget of P18.28-billion.

A decision to buy bid documents, however, does not mean that the company would automatically join the bidding.

There have been instances wherein a prospective supplier purchased bid documents but did not submit offers. The bidding for the fuel supply project will be held next month.

Petron had won previous biddings for the supply of the military and the Defense department.

Last year, the oil company bagged the multi-million contract for the fuel supply for the military, including that of the Navy warship BRP Gregorio del Pilar. 

Petron had offered to supply fuel for three military projects for P314 million, lower than the P381 million total approved budget.

The fuel supply projects won by Petron last year were the petroleum, oil and lubricant requirements of BRP del Pilar, the reimbursement of fuel used by military units deployed in areas hit by Typhoon Sendong, and standby fuel supply for disaster response.

Petron also won the bidding for the supply of more than P5-billion worth of petroleum, oil and lubricants to the military in 2011.

The fuel supply project that will undergo bidding this month involves the purchase of petroleum, oil and lubricants for the years 2014 to 2017.

The multi-billion project has been divided into six lots.

Lot 1 involves the fuel requirements for units in Metro Manila and has an approved budget of P2.39-billion. Lot 2 entails the procurement of fuel requirements for Luzon with a budget of P4.58-billion.

A total of P1.86-billion has been allotted for lot 3, which pertains to the fuel requirements for Visayas units. Lot 4 or the fuel requirements for troops in Mindanao has been given P5.47-billion.