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Slippery Deals

The government is in the final stages of negotiation with a US based company interested in building a new oil refinery adjoining the one it operates on the outskirts of the capital.
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The government is in the final stages of negotiation with a US based company interested in building a new oil refinery adjoining the one it operates on the outskirts of the capital.

Ceylon Petroleum Corporation (CPC) is offering a carrot to an investor by way of the use of its infrastructure like pipelines from the port and storage facilities.

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A sharing agreement could also get the government a stake in the project.

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Around two thirds of the islands fuel requirement or 50,000 barrels a day is refined at the current facility.
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The American investor has offered to build a refinery capable of handling 100,000 barrels a day if its offered use of some of CPC’s existing infrastructure.

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“A technical evaluation committee has been appointed to negotiate with the financiers.

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But no letter of intent has been awarded but it is in the process,” Jaliya Medagama, Chairman, Ceylon Petroleum Corporation told a news conference last week.

Sri Lanka consumes around 3 .6 million tons of fuel every year.

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