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Gas Bid

June 17, 2010 (LBO) - The Sri Lankan government wants to buy back the stake in the Shell Gas unit in the island that had been sold to the multinational in a privatization exercise several years ago, a spokesman said.
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The state-run Bank of Ceylon has been made an advisor to a committee that will negotiate with the Shell multinational, media minister Keheliya Rambukkwella told a news conference.
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He said the administration of president Mahinda Rjapaksa had promised to stop privatization of state entities.

"We will use every opportunity to buy back assets that were sold," he said.

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Representatives from Sri Lanka's ministries for finance, economic development, petroleum and power energy will in the committee.

Royal Dutch Shell owns a 51 percent stake in Shell Gas Lanka, the dominant supplier of liquefied petroleum gas (LPG) in the island, with the government owning the rest.

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Shell has said it is in talks with possible buyers after taking a decision to exit gas distribution in Asia.
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Shell bought the then government own Colombo Gas Company, which itself was a 'nationalized' private firm at a time when it there were chronic shortages of gas and new cylinders were not freely available and price

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