Lanka IOC inked the agreement last week to the development and use of the Trincomalee Oil Tank Farms (OTF) at the Ministry of Finance of Sri Lanka, with the participation of representatives of the Government including the Ministry of Energy. Ceylon Petroleum Corporation (CPC), Lanka IOC (LIOC) and the Joint Venture between CPC and LIOC named Trinco Petroleum Terminal Private Limited (TPTPL).
Accordingly, the Joint Venture between LIOC and CPC known as TPTPL will develop and use 61 tanks in the Upper Tank Farm of the OTF. The remaining 24 tanks in the Upper Tank Farm will be developed and used by CPC. LIOC will be able to develop and use the Lower Tank Farm of the OTF, which has already been developed by it. It may be recalled that LIOC had been invited to develop the OTF in 2003.
This significant understanding to facilitate the further development of the OTF and the realisation of its full potential has been made possible by the unstinting support of governments and relevant departments. The above understanding will enable LIOC to enhance its investments in Sri Lanka as well as further expand its role in strengthening energy security, creating jobs locally, generating revenue and facilitating the introduction of new technology and products in the country.
LIOC has already created about 175 direct jobs and more than 5,000 indirect jobs in the country which are predominantly held by Sri Lankan nationals. LIOC’s investments in Sri Lanka so far have exceeded US$ 100 million. Lanka IOC Managing Director, Manoj Gupta said “This is a historic moment for both the countries which will pave the way for unfolding numerous opportunities and further strengthening of the strong bilateral relationship.”
The tanks will allow LIOC to purchase and store large stocks of oil when their prices dip and store them in the tanks to be used when the global oil prices are high.
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