SOCAR Energy Ukraine, the Ukrainian subsidiary of the Azerbaijani state oil company SOCAR, and Gaztrim Trading House LLC offered the lowest prices in the tender held by Ukrainian Ministry of Defense for the supply of 10,200 tons of diesel fuel on April 6, the Ukrainian website on public procurements reported.
SOCAR became the winner by offering a price of 21,650 hryvnias ($799) per ton in the first lot, which envisaged the purchase of 4,700 tons of Arctic diesel. At the same time, OKKO Contract private enterprise was the only competitor of SOCAR Energy Ukraine, which offered the same price.
Gaztrim Trading House LLC and SOCAR Energy Ukraine which offered the prices of 18,100 hryvnias ($667.99) per ton and 18,708 hryvnias ($685.77) per ton respectively, became winners in the second and third lots for 2,500 tons and 3,000 tons of diesel fuel (summer brand).
According to A-95 Consulting Group, the country's average diesel price was 17,700 hryvnias ($648.84) per ton on FCA terms on April 6.
Meanwhile, taking into account the premium for the quality of the Arctic oil brand in the amount of $50 per ton, the current market price of the fuel grade purchased by the Defense Ministry is about 19,070 hryvnias ($699.06) per ton.
The Ministry of Defense buys diesel fuel on DDP terms (Delivered Duty Paid), as well as with a delay of payment for 30 days.
In total, five companies took part in the tender of the Ministry of Defense, among which, besides the winners, were OKKO Contract, Glusko Ukraine and Fidea Firm LLC.
SOCAR’s representative office opened in Ukraine in 2008.
The company acquired about 20 Tala-Nafta filling stations in Odessa and Nikolaev regions, as well as Svitanok large oil depot in Odessa region in 2009.
The company took control of the fuelling networks ONIO (four filling stations in Kyiv and the region) and GFC (in Lviv region) in 2010-2011. SOCAR received permission from the Antimonopoly Committee of Ukraine to purchase 26 filling stations and one tank farm of the Kalina group in August 2012.
The company operates 60 filling stations in Ukraine, as well as two “Baku-1” oil bunkers in Kyiv and “Ganja” in Odessa.
The company has also been engaged in the trade of natural gas in Ukraine since late 2016.
(1 USD = 0.0369 UAH on April 9)