Hamburg | | Press Release

Skytanking, Indian Oil and Indian Oiltanking are Awarded the Aviation Fuel Facility Concession for the New Bangalore International Airport

Skytanking today announced that it has been awarded the aviation fuel concession for the new Bangalore International Airport, which is due to open in 2008. Skytanking, in a consortium with Indian Oil Corporation and Indian Oiltanking, beat four other bidders to secure the 20-year concession to design, finance, construct and operate the aviation fuel storage and hydrant system at the airport. Each of the consortium members will take a one third share in the venture.

Bangalore International Airport Limited (BIAL) announced its decision to appoint the Skytanking, Indian Oil, Indian Oiltanking consortium after a rigorous appraisal of tender submissions from each of the 5 bidders. In order to win the concession, the consortium had to demonstrate its capability in financing, engineering, construction and operations in airport fuel projects of this size and scope. Skytanking and Indian Oil have in-house expertise in the funding, engineering and operation of Jet A-1 storage and hydrant systems, while Indian Oiltanking are experts in EPC (engineering, procurement and construction) contracts for petroleum product storage and pipelines.

BIAL specified in the tender that the fuel storage and hydrant system should be ‘open access’ in order to maximise competition between fuel suppliers and to keep Jet A-1 prices as low as possible. As a result the fuel storage and hydrant system will be open to any qualified supplier on identical commercial terms.

"India is one of the most exciting aviation markets in the world and we are delighted that Skytanking’s expertise, particularly in ‘open-access’ aviation fuel storage, has been recognised by BIAL" said Paul Workman, Skytanking’s Vice President Business Development. "Skytanking does not sell jet-fuel and is one of the few companies in the world that has the technical expertise and financial resources to undertake this kind of project. This makes Skytanking the ideal partner for building and operating ‘open access’ jet-fuel supply infrastructure at any airport in the world."