Moves to buy fuel from Saudi Arabia, Abu Dhabi

Sri Lanka is hoping to persuade Saudi Arabia and Abu Dhabi to step up crude and refined oil supplies to the country in the wake of sanctions on Iran, a senior Petroleum Industries Ministry official said yesterday.

He said talks were being held with Saudi-based Aramco, a fully integrated international petroleum company, and Abu Dhabi National Oil Company (ADNOC) on extra supplies. Petroleum Industries Minister Susil Premajayantha was also likely to travel to the two countries next week for more talks, he said.

The official said crude oil imports from Iran might drop by at least 10 per cent this year and Sri Lanka was also looking at the possibility of buying refined oil in the international market.

Last year, Sri Lanka imported two million tons of crude oil at a total cost of US$ 1.7 billion. From that quantity, 1.93 million tons were bought from Iran on concessionary rates at a cost of $1.6 billion.

At present Sri Lanka was buying some of its refined oil requirement from India’s Reliance through spot tenders on the world market and now moves were underway to ask that company to extend credit terms on fuel purchases, the official said.

Sri Lanka has also sought assistance from the government of Oman but there had been no response still, the official said.

Meanwhile, Lanka-india Oil Company Managing Director K. R. Suresh Kumar said the Iranian oil crisis did not affect LIOC as its supply came from Reliance and several global traders directly and it was not too dependent on the Sapugaskanda refined oil.

He said a consignment of 40,000 tons of fuel was now on its way and there would not be a shortage as far as LIOCS was concerned.

NO OIL, NO MONEY