Petroleum Ministry, LIOC to discuss use of oil tanks
The Ministry of Petroleum Resources Development is to commence discussions next week with Lanka Indian Oil Co. (LIOC) for an agreement on the use of oil tanks at the Trincomalee Oil Tank Farm.
The Ceylon Petroleum Corporation (CPC) wants to use some of the oil tanks at the farm, which is currently under the IOC, to store fuel as its current fuel storage capacity is low, Petroleum Resources Development Minister Arjuna Ranatunga told the Sunday Times. “As such, we are hoping to reach an agreement with IOC for the use of some tanks at the oil farm.”
Minister Ranatunga acknowledged that the oil tank farm was a sensitive issue for both countries. India is interested in developing the oil tank farm, but the 2003 agreement, where the tanks were handed over to LIOC, is currently being contested in court. The Minister said that, while those cases are ongoing, the aim was to reach a “diplomatic agreement”, so that the CPC is allowed to use some of the tanks.
“Fuel shortages are currently a major issue for us. We must do our utmost to find a speedy solution.”
He said the Attorney General’s Dept was also being consulted regarding the framework of any agreement to be reached with the LIOC on using oil tanks at the farm.
Meanwhile, Petroleum sector trade unions held a discussion lasting over two hours this week with Prime Minister Ranil Wickremesinghe and Minister Ranatunga.
Convener- Ceylon Petroleum Common Workers’ Union, D.J. Rajakaruna, said they pointed out to the PM that the 2003 agreement which allowed the LIOC to take over the oil tank farm, is legally flawed.
“The PM accepted our argument, but told us the Govt could not simply cancel the agreement, as the LIOC was paying us a substantial amount each year for use of the oil tanks.”
Mr Rajakaruna said the PM assured them that the Govt would not enter into any new agreement regarding the entire oil tank farm, until the conclusion of two court cases filed by the Petroleum sector trade unions, regarding the 2003 agreement.
The trade union leader however, stated the unions were still seeking a meeting with President Maithripala Sirisena to brief him on the issue. He warned that unions would resort to an island-wide strike, if authorities failed to grant them a meeting.