Bangladesh has approved the import of 1.4 million tonnes of crude oil from Saudi Arabia and Abu Dhabi in 2027 for processing at Eastern Refinery, while cutting the time for international tenders for refined fuel imports by half to allow faster procurement.
The crude will be bought directly from Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) under government-to-government arrangements through the direct procurement method (DPM), with the Bangladesh Petroleum Corporation (BPC) making the purchases.
The policy approval was given at a meeting of the Cabinet Committee on Economic Affairs (CCEA) yesterday, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury at the Secretariat.
Of the total crude, Saudi Arabia will supply Arabian Light and Abu Dhabi will supply Murban crude, which are considered particularly suitable and commercially advantageous for processing at Eastern Refinery’s existing plant.
BPC has long imported crude from Aramco and ADNOC under G2G arrangements for refining at Eastern Refinery.
The government said there was no assurance that crude with similar characteristics and suitable for Bangladesh’s requirements could be sourced from other countries or suppliers.
The crude procurement will therefore be made under the direct procurement method in the interest of ensuring uninterrupted supply and meeting an essential public requirement, under the relevant provisions of the Public Procurement Act and Rules.
The imports will be financed with loans from the International Islamic Trade Finance Corporation (ITFC).
Faster refined-fuel imports
The CCEA also approved a proposal to halve the bid preparation and submission period for international open tenders for refined petroleum products imported by BPC during January-June 2027.
The period will be reduced to 21 days from the existing 42 days.
The shorter tender window is intended to allow BPC to respond more quickly to changes in international market conditions and domestic demand, helping ensure timely fuel supplies.
The committee also gave policy approval for procuring refined petroleum products through the direct procurement method under the G2G process for January-December 2027.
The Energy and Mineral Resources Division placed all three proposals before the committee.
The decisions come as Bangladesh continues to rely on a combination of crude imports for domestic refining and imports of refined petroleum products to meet its fuel demand.
Eastern Refinery, the country’s lone state-owned refinery, processes imported crude into products including diesel, petrol, octane, kerosene and jet fuel.