Petroleum Corp asked to hire Bangladeshi vessels for oil imports

The Mercantile Marine Office has asked the state-run Bangladesh Petroleum Corporation to import fuel oil by Bangladeshi flag carrier oceangoing vessels, citing a legal obligation that stipulates transportation by a state-owned enterprise.

"We welcome the move in line with the Bangladesh flag vessels protection law. But it should be considered if we have enough carriers for that," said a top official at the Petroleum Corporation, wishing anonymity.

The official also mentioned that foreign suppliers usually hire oil carriers for delivery and it is up to them whether they would charter a Bangladeshi ship. "We can only establish contact between the suppliers and the Bangladesh Shipping Corporation," noted the official.

Currently, the state-run Shipping Corporation has eight ships, including three oil tankers – MT Banglar Agrajatra, MT Banglar Agradoot, and MT Banglar Agragoti. The tankers each have a capacity of 39,000 deadweight tonnage.

After completing rent tenures to foreign firms, the tankers will return home and be ready to be availed of in early 2022.

On receiving instructions from the Mercantile Marine Office on 14 December, the Ministry of Power, Energy and Mineral Resources constituted a high-powered committee to map out its next course of action, according to Petroleum Corporation sources.

The corporation imports around 50 lakh tonnes of refined oil a year from eight foreign suppliers, including Kuwait, Malaysia, China and the United Arab Emirates. The suppliers send the details to the Bangladesh Petroleum Corporation about the carriers to be used for the delivery.

On clearance from the Petroleum Corporation, the suppliers finalise the ship chartering process.

Bangladesh imported more than 58 lakh tonnes of refined and 16 lakh tonnes of crude oil in the January-December period this year. The Petroleum Corporation's imports were around 59 lakh tonnes in the fiscal 2018-19 and around 52 lakh tonnes in 2020-21 – nearly 92% of local demand.

Shahed Sarwar, director of the Bangladesh Shipping Agents Association, told The Business Standard that if Bangladesh's oil consignments could be brought in by Bangladeshi flag carrier vessels, the government's money will remain within the country.

"That certainly will be positive for the country's economy. But the shipping company and its officials must be service-oriented by discarding their bureaucratic attitude," he added.

Mohammad Ashraful Amin, general manager (Admin) of the Bangladesh Shipping Corporation, said three more oil tankers will be added to the corporation's fleet, making it better able to bring in imported oil.