ECONOMYNEXT – Sri Lanka will sign fuel retail agreements with China’s state-owned petroleum corporation Sinopec mid-May with operations to commence 45 days thence, Power & Energy Minister Kanchana Wijesekara said.
Wijesekara tweeted Wednesday April 26 afternoon that he met a Sinopec team that arrived in the island the previous day to finalise the agreements.
A team of Sinopec officials & technical experts visited SL to finalize the agreements & commencement of operations for retail fuel sales. Met the officials yesterday at the ministry to discuss on a timeline, conditions on the agreement & other concerns. It was decided to sign the… pic.twitter.com/geFoB5QRHV
— Kanchana Wijesekera (@kanchana_wij) April 26, 2023
Sinopec is one of several overseas companies that Sri Lanka plans to lease 150 of its fuel filling stations to. Cabinet approval for this proposal was granted end-March 2023.
President Ranil Wickremesinghe’s administration has decided to sell government stakes in seven key state-owned enterprises (SOEs) including loss-making fuel retailer Ceylon Petroleum Corporation (CPC). Restructuring SOEs has been on high on the agenda of the Wickremesinghe government as part of its reform plans consequent to finalising an agreement with the International Monetary Fund (IMF) for a 2.9 billion US dollar extended fund facility.
Delegations from China Merchants Group and Sinopec groups were previously in Sri Lanka in March looking for further investments in the island. The Beijing-based company was already involved in bunkering operations in Hambantota.
In a subsequent meeting with President Wickremesinghe on March 13, Sinopec pledged to invest in the southern district.
Political analysts saw the move as part of Chinese efforts to consolidate investments in Sri Lanka’s ports and energy sector amid security concerns raised by the island nation’s immediate neighbour India and the United States.
Related:
China’s Sinopec eyes refinery investment in Sri Lanka amid rising geopolitical concerns
Meanwhile a date in mid May has been set to sign agreements with the RM Parks-Shell to commence operations by June first week.
“From the observations made by RM Parks-Shell technical officials that visited CPSTL tank farm last week, offered to upgrade CPSTL berthing facilities to be in line with international standards & safety requirements” Wijesekara said.
An online meeting was held with RM Parks-Shell to discuss agreements, policy, logistics & time line for commencement of operations in SL. It was decided to set a date mid May for signing of agreements & commence operations by 1st week of June. From the observations made by RM… pic.twitter.com/uZb5z7uYxc
— Kanchana Wijesekera (@kanchana_wij) April 26, 2023
(Colombo/Apr26/2023)
Why should the Govt sign separate agreements at separate times with parties re: petroleum why not sign the same agreement with all parties so that no one gets undue advantage or benefit? In a country where bribery is at its height, this is a classic example of how someone could benefit personally.