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CUC reviews proposed new contract with Mobil

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THE Commonwealth Utilities Corp. is now in the process of reviewing its proposed new fuel supply contract with Mobil Oil Marianas, CUC Executive Director Gary Camacho said.

In his report to the board, he said the previous six-year, $360 million contract of CUC with Mobil ended on May 1.

For the new contract, “There’s only one bidder [with a] very comparable rate,” Camacho said, referring to Mobil.

However, he said, there could be some changes to the new contract.

Mobil can no longer provide advance notice about the fuel price due to the current overproduction of oil, which has affected the international market, he added.

“This poses a serious problem for us,” he said, adding that CUC may not immediately know what it is going to bill for the coming month.

But other than that concern, Camacho said the proposed new contract is “very good.”

The previous six-year contract allowed CUC to purchase 108 million gallons of fuel or 18 million gallons per year.

 

November 2020 pssnewsletter

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