GOVT. OPTS FOR CEYPETCO-LIOC JOINT VENTURE
Despite what detractors and some trade unions say, the government will go ahead with its plans to develop the 61 oil tanks in Trincomalee as a joint venture with the Lanka Indian Oil Company (LIOC), Petroleum Resources Development Minister Arjuna Ranatunga said yesterday.
He told the media that he and Prime Minister Ranil Wickremesinghe updated the Indian Premier Narendra Modi on Sri Lanka’s proposed plan to develop the Trincomalee oil tank farm as a joint venture between the LIOC and CEYPETCO.
“According to the plan the Indian Oil Company (IOC) will refurbish 15 oil tanks and hand them over to CEYPETCO for its use. Sixteen tanks will be used by the LIOC on a 35-year lease agreement signed during UNP government in 2002. A joint venture company will be set up with equal liabilities and shareholding by India and Sri Lankan partners to develop and manage the remaining 69 tanks,” the minister said. He said no one raised objections when the 100 capacity tank farm was neglected and remained unused for more than six decades. ”Almost all those who opposed the development of the Trincomalee tank farm are those who benefit from them being unused. Certain businessmen and trade union officials get a commission from oil distribution. Fuel bowser operators are also opposing this project because they think they will lose their occupation if the tank farm is in use. But the government is determined to refurbish and use the Trincomalle tank farm for the benefit of the entire country and the economy with the help of India,” the minister said.
He said the joint venture company will be set up after the 2019 Budget is presented in Parliament while smaller tank farms will also be set up in KKS to minimize CEYPETCO’S transport costs.
Indian Premier was updated on SL’S proposed plan to develop the Trincomalee oil tank farm as a LIOC - CEYPETCO joint venture