Bloomberg News

Augusta Energy Wins $750 Million Tanzania Tender to Supply Oil

March 29, 2012

Augusta Energy SA, a Geneva-based oil trader, has for the third time won a tender to supply petroleum products to Tanzania, under the East African country’s bulk-procurement system.

“The tender is estimated to be worth $750 million at today’s price,” Shanif Mansoor, chairman of Tanzania’s Petroleum Importation Coordinator Ltd., said today in a phone interview from Dar es Salaam, the commercial capital. PIC, as the company which groups oil-marketing companies in Tanzania is known, issues a tender to import fuel every two months.

Augusta Energy will supply 640,000 metric-tons of oil products for delivery in May and June, Mansoor said. The next tender will be issued in two months for consumption in July and August, he said.

Tanzania consumes 1.54 million cubic meters (407 million gallons) of petroleum annually, according to information on the website of the Energy and Water Utilities Regulatory Authority. The country is also a transit hub for oil products that are shipped to nations in the region including the Democratic Republic of Congo, Rwanda, Burundi and Zambia.

To contact the reporter on this story: David Malingha Doya in Dar es Salaam at dmalingha@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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