Saudi Arabia Supplies 100,000 Tons Oil as Eastern Refinery Resumes Full Production
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After a prolonged period of uncertainty, a vessel carrying 100,000 tons of crude oil is set to dock at the port of Chittagong. The ship, named ‘MT Nini Mia’, is expected to arrive on Wednesday afternoon. Once the offloading of oil is complete, the country’s sole state-owned oil refinery, Eastern Refinery PLC, will resume full production around May 8 or 9.
Sources at the refinery indicated that no crude oil vessels had been able to reach the country in March and April due to the conflict situation in the Middle East. The delay in scheduled arrivals led to a rapid depletion of the refinery’s reserves, forcing a reduction in operational speed and ultimately a complete halt in oil refining. The arrival of the new shipment is therefore being viewed as a significant relief.
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Officials involved stated that the unloading of oil typically takes several days. Following this, all operational units will be gradually brought back online. According to the plan, the refinery will commence oil refining at full capacity on May 8 and 9, which will normalize the production of diesel, petrol, and other fuels.
M. Sharif Hasanat, Managing Director of Eastern Refinery, confirmed to a local newspaper that the ship would arrive at the port by Wednesday afternoon, after which the refining process and full-scale production would begin.
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Officials from the Bangladesh Petroleum Corporation (BPC) explained that 80% of the country’s fuel demand is met through the direct import of refined oil, while the remaining 20% is sourced from refining imported crude oil.
A vessel that had gone to collect oil from Ras Tanura port in Saudi Arabia on March 2 became stranded due to the ongoing conflict. Although the ship, named ‘Nordic Pollux’, loaded crude oil on March 3 and departed, it was forced to return to Ras Tanura terminal due to unfavorable conditions and remains there.
Meanwhile, an agreement was made with the Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates to import 100,000 tons of oil last month, with the Bangladesh Shipping Corporation contracting the vessel ‘MT Omra Galaxy’. However, the shipping company canceled the contract and proposed taking oil from Fujairah port instead of Jebel Dhana port. While this would bypass the Strait of Hormuz, it would significantly increase import costs.
As per the original schedule, 100,000 tons of crude oil were expected from Ras Tanura port in April. As an alternative, ‘MT Nini Mia’ departed from Yanbu port in Saudi Arabia on April 24. However, this shipment incurs nearly double the import costs, with an additional expense of approximately 6.07 billion Bangladeshi Taka for this single vessel.
The cost of approximately 100,000 tons of crude fuel oil amounts to $100.84 million, which is roughly 12.23 billion Bangladeshi Taka. The price per barrel is calculated at $126.28.
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