PSALM awards $194-M oil deals to Petron, Shell unit

Reuters

Posted at Jul 18 2011 12:44 PM | Updated as of Jul 18 2011 08:44 PM

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) has awarded industrial fuel oil supply contracts worth P8.34 billion ($194 million) to the local unit of Royal Dutch Shell Plc and Petron Corp.

The contracts cover the fuel requirements of state-owned power plants and barges on the main island Luzon and the southern Mindanao region in the second half of 2011.

PSALM, the state agency tasked with privatizing the assets and managing the debts of state-owned National Power Corp. (Napocor), said on Monday a notice of award was issued to Pilipinas Shell Petroleum Corp. for a contract worth P5.27 billion.

Petron, a unit of conglomerate San Miguel Corp., won three contracts worth a total of P3.07 billion, PSALM said.

PSALM had sought bids for 102,000 kiloliters of industrial fuel oil and 150 kiloliters of industrial diesel oil for five power plants and barges. It had approved a budget of P9.45 billion for the new contracts.

Early this year, Petron and Pilipinas Shell won contracts from PSALM worth P3.5 billion. They had also won separate oil supply deals worth P669 million from Napocor.