Ministry of Science, Technology, Energy and Mining (MSTEM) that the contract currently being negotiated between Petrojam and Barbados National Oil Company (BNOC) for the supply of finished products is the only one received by the Jamaican refinery for refined products in other Caribbean nations to date.
Petrojam is also sourcing crude for the Barbadian company. Caribbean countries have been looking around for new sources of supply since the temporary mothballing of Trinidadian refinery Petrotrin.
MSTEM said Petrojam is currently exploring the possibility of entering into supply arrangements with a number of territories.
” Petrojam’s bid for the crude oil purchase was successful and a one-year contract for the purchase of approximately 240,000 barrels of “Woodbourne” crude oil was awarded to the company in March 2019.– MSTEM
In a response channelled through its communications unit, the Ministry said in mid-September that Petrojam is continuing negotiations with Barbados National Oil Company (BNOC) to supply refined/finished products.
MSTEM said that while Petrojam does not have supply contracts with other Caribbean territories, “we do supply products to Trinidad and Antigua from time to time, on a spot basis.”
Delivery on a spot basis means that specific quantities of product(s) are delivered at current market rate and are not based on supply contracts.
Petrojam responded to a Request for Proposal (RFP) from Barbados National Oil Company (BNOC) in December 2018 for the supply of refined products (Gasoline, ULSD) and the purchase of Barbados National Crude Oil.
MSTEM commented, “Petrojam’s bid for the crude oil purchase was successful and a one-year contract for the purchase of approximately 240,000 barrels of “Woodbourne” crude oil was awarded to the company in March 2019.
With regard to the supply of refined products, Petrojam has been in negotiations with BNOC, but has not yet established a supply contract for any product.
MSTEM declined to comment on the long term outlook for Petrojam for Barbados and other Caribbean markets, noting, “it is … premature for us to state whether or not this would be a long term opportunity, since this would be dependent on several factors including the duration and specific terms of the contract.
The ministry added, “While we do not have the exact value of the market for refined products in CARICOM, we can say that the export market for refined products in the Caribbean (CARICOM) is significant. Petrojam is currently exploring the possibility of entering into supply arrangements with a number of territories.”
The Government of Trinidad and Tobago is yet to announce the arrangements under which Petrotrin will re-enter the market, noting only at mid-year that it was considering a foreign based concession older.