Sri Lanka seeks joint venture with Indian Oil unit for Trinco oil tanks
ECONOMYNEXT – Sri Lanka’s state-owned petroleum refiner and retailer will jointly develop an unused oil tank farm in the eastern port of Trincomalee with Indian Oil Corporation’s local unit, Minister of Petroleum Resources Development Arjuna Ranatunga said.
Lanka Indian Oil Corp. (LIOC), which is listed on the Colombo bourse, has leased part of the tank farm with up to 99 tanks under an agreement between the two governments in 2003, he told a news conference.
But apart from 15 tanks used by LIOC, the other tanks remained unused for the last 15 years.
Ranatunga said he would like to have a joint venture between LIOC and Ceylon Petroleum Corporation (CPC) to repair and make use of the tank farm.
The Cabinet of ministers has approved his proposal for the joint venture, he said.
Ranatunga said he proposed Sri Lanka retain ownership of the land but hand over to LIOC 15 tanks now used by the firm and sign a deal to joint develop the remaining 85 tanks.
Under the deal, 16 tanks would be for the CPC’s use.
“The CPC aims to use the tanks to provide bunkering for ships and to store and distribute refined petroleum products in the north-east which is now supplied from Colombo which is more costly,” Ranatunga said.
(COLOMBO, 17 Octber, 2018)