Construction of US$3.85bn oil refinery to start in Sri Lanka, exports US$7bn
Mar 19, 2019 11:46 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka will begin construction of a 3.85 billion US dollar oil refinery on March 24, which can export up to 7 billion dollars of refined products a year when in full operation, officials said.
The refinery will have a capacity of 200,000 barrels per day and is slated to be the biggest foreign direct investment project in the country, Deputy Minister of International Trade and Investment Nalin Bandara said.
The refinery is a joint venture between Silverpark International (Pvt) Ltd, based in Singapore which hold a 70 percent stake and Oil and Gas Company of Sultanate of Oman which will hold 30 percent, Technical Advisor to the Ministry of international trade Mangala Yapa said.
Construction will begin on March 24 on the tank farm, he said.
The refinery will target exports and no commitments have been given by Sri Lanka to purchase its output, Yapa said.
The firm could also supply Sri Lanka's Ceylon Petroleum Corporation or Lanka IOC after making competitive bids, he said.
Sri Lana now has a refinery with a 50,000 barrels per day capacity, but it has old technology. (Colombo/Mar19/2019-SB)