SL, India in joint venture to develop Trinco oil facility | Daily News

SL, India in joint venture to develop Trinco oil facility

India and Sri Lanka have agreed in principle to jointly develop and operate the oil storage facility located in the strategically important Trincomalee, Petroleum Resources Development Minister Chandima Weerakkody said yesterday. The minister said this will be a joint venture between the two countries with benefits for both parties.

“Some are trying to interpret this venture as a sale of State assets. But this is completely false and misleading,” he added.

“Under an agreement signed in 2003, all the 99 oil tanks were given to India. By with this new move, the Sri Lankan government will be able to take back 10 of the 99 tanks for the exclusive use of Sri Lanka,” Minister Weerakkody told the Daily News.

“The balance 73 oil tanks will be given to Indian Oil Corporation on lease to be developed by a company that will be operated as a joint venture between Sri Lanka and India, of which 50 percent shares will be held by the Government of Sri Lanka,” Minister Weerakkody explained.

This facility has been idling since 1966. It will now come to use through this joint venture and importantly, the Sri Lankan government will only give these oil tanks on a lease, Minister Weerakkody said.

He also explained that the oil tank farm was a property of the United Kingdom until former Prime Minister S.W.R.D. Bandaranaike purchased them back.

Speaking on the economic prospects of the joint venture, Minister Weerakkody explained that when the Ceylon Petroleum Cooperation gets 10 oil tanks for exclusive use, Sri Lanka will have a guarantee of more oil stocks. “All this time we had only a stock which is enough for 10 days,” he said.

“Once the facility is jointly developed, we will be able to earn 50 percent of the joint venture company, which is involved in both storage and sale of oil,” Minister Weerakkody pointed out.

“We will not only be able to sell oil stocks within the country but outside as well,” Minister Weerakkody added.


 

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