PSO to re-tender base oil contract

Pakistan State Oil (PSO) has decided to re-tender a base oil import tender, following allegations of irregularities by a trading company which participated in the tender. Minister for Petroleum and Natural Resources Asim Hussain directed PSO to investigate the “alleged” base oil tender scandal, following a story which was published by the Business Recorder on November 16, 2011. The complaint was lodged by a company called H&H Trading. PSO’s complaint committee said that the main claim made by H&H, namely its assertion of being the lowest bidder for Group II base oil was incorrect, as per the tender opening records. The committee also found that while the tender stated Group II base oils, the nomenclature used was SN 150 and SN 500 which refer to two viscosity grades for Group I base oils. PSO further stated that “However, this discrepancy did not have any impact on the bidding process. During the review, it was also noted that H&H was the only bidder to have bid for both Group I and Group II oils. All other bidders were clear on the company requirements and had bid only for Group II oils.” During the review process, the committee also found that H&H had listed the source of its offered product as “Russia and the CIS countries” in the initial tender inquiry but later “claimed the name of the manufacturer as GS Caltex and Korea as the source of origin.” PSO said, however, that “No commercial transaction has materialized in regard to the base oil tender under question. The awarded contract was not performed during the allocated period and PSO in due course will be carrying out a re-tendering process for the requisite quantity of base oil.” (December 24, 2011)