SOCAR supplies almost 50pct of diesel fuel on contract with Ukrzaliznytsia
By Nigar Abbasova
SOCAR Energy Ukraine Trade House (a subsidiary of Azerbaijan’s state oil company SOCAR in Ukraine) supplied almost 50 percent of diesel fuel to PJSC Ukrzaliznytsia (Ukranian Railways) within the agreement reached on the results of the tender, said the Ukrainian company in a message posted on August, 8.
“As of August 8, 2016, the volume of the shipped diesel fuel by SOCAR was 8,380 tons. Thus, the agreement signed by the sides on August 1, has been implemented by almost 50 percent,” said the message.
SOCAR Ukraine won a tender held by Center for Provision of Production of Ukrzaliznytsia to supply diesel fuel. Following the tender, SOCAR Energy Ukraine and Ukrzaliznytsia signed an agreement on the supply of diesel fuel with a total volume of 14,087 tons worth over $10 million.
The first lot of the supply with the volume of 730 tons was shipped, following the conclusion of the contract. Among other participants of the tender were WOG Aero Jet, UKRTATNAFTA, OKKO Business Contract.
The price offered by SOCAR Ukraine stood at 17,700 Ukrainian Hryvnia per ton with VAT included ($ 712.9), Interfax Ukraine reported. Ukrzaliznytsia said that the offer of SOCAR Ukraine was better than offers of other bidders.
Earlier, Ukrzaliznytsia reported that one of the bidders of the tender WOG Aero Jet which price was 15.3 percent higher challenged the results.
Commenting on the claim of WOG Aero Jet sent to Ukraine’s Antimonopoly Committee, Ukrzaliznytsia said that the contract is considered to be based on legal grounds and as the authority has not made any decision under the claim since the closure of a deal, mentioning that such actions are considered to be a manifestation of unhealthy competitiveness.
WOG Aero Jet also filed a claim to the National Anti-Corruption Bureau of Ukraine, according to Ukrzaliznytsia.
Ukrzaliznytsia also reported that the electronic tenders were announced on August 5 to buy 8,000 tons and 10,986 tons of diesel fuel for the further provision of the Railways with diesel fuel.
In Ukraine, SOCAR is represented by SOCAR Energy Ukraine, running a network of 58 refueling stations. The main activity of SOCAR Energy Ukraine is to improve the network of petrol filling stations and organize wholesale of petrol and oil products in the territory of Ukraine. The company continues to steadily develop its filling stations network both in the capital of Ukraine and other regions. The filling stations are operating under the SOCAR brand in the Kyiv, Odessa, Lviv, Nikolaevsk, Rovensk, Cherkasy, Khmelnytsky and Poltava regions of Ukraine.
In January-July 2016, SOCAR exported 415,980 tons of diesel fuel as compared to the figure of 528,230 tons in the same period of 2015. The company has so far invested over $200 million in the development of business in Ukraine.
SOCAR is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in domestic and international markets, as well as, supplying natural gas to industry and the public in Azerbaijan.
The company has representative offices in Georgia, Turkey, Romania, Austria, Switzerland, Kazakhstan, Great Britain, Iran, Germany and Ukraine, as well as trading companies in Switzerland, Singapore, Vietnam, Nigeria, and other countries.
SOCAR owns petrol stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. The representation in Ukraine was opened in 2008.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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