Sri Lanka offers long-term contracts to import refined petro products

Nov 17, 2016 (LBO) –Sri Lanka’s cabinet has granted its approval to offer three longer term contracts to Indian and Singapore companies to purchase refined petroleum products to meet the country’s demands. These contracts cover a period of 8 months starting December this year as the existing contracts for purchase of refined petroleum products have already expired. Accordingly, Singapore’s Petrochina International has received 02 contracts and India’s Reliance Industries has received one contract. Under these contracts Gas oil (0.001% & 0.05 Max Sulpher) and Gasoline (92 & 95 Unl) will be supplied from December 2016 to end July 2017. Petroleum Development Minister Chandima Weerakkody said in a note to the cabinet that these contracts were the lowest evaluated substantially responsive bids. Chairman of CPC is to enter into respective agreements with the contractors after obtaining the legal clearance. Sri Lanka currently plans to upgrade the CPC’s 50,000 barrels-per-day oil refinery at an estimated cost of 2.2 billion US dollars to double the capacity while reducing the cost of importing refined fuels.