Sri Lanka rejects Indian offer to upgrade refinery

Apr 29, 2012 |

IANS

Colombo

Tags:

Sri Lanka has rejected an Indian offer to upgrade a refinery that is built to refine only Iranian oil, a minister said on Sunday.

Petroleum Minister Susil Premjayantha said the offer to upgrade the Sapugaskanda oil refinery had come from the Indian Oil Corporation (IOC) but Colombo rejected it.

He said since IOC already operates a majority of fuel stations in Sri Lanka and as a result increases the fuel prices at will, handing over the refinery to the same company could hurt the local fuel distribution sector, Xinhua reported.

Premjayantha said Sri Lanka needs to upgrade the facility to refine oil from other countries as Iran oil imports will be reduced due to US sanctions on Iran.

Over 90 percent of Sri Lanka's crude oil requirements come from Iran. "We are being compelled to cut our oil imports from Iran because of the US sanctions so we are considering Oman and other countries.

"But to refine the oil we get from other countries we need to upgrade the facilities at the Sapugaskanda because that was built to accommodate only oil from Iran," he said.

He added that about $500 million will be required to upgrade the facilities at the refinery and Sri Lanka will seek expressions of interest to carry out the work.

IOC controls one third of Sri Lanka's retail fuel market and has been operating in the country since 2003.

Sri Lanka is seeking alternative crude oil suppliers in view of the US sanctions on Iran coming into force from June this year.

Post new comment

<form action="/comment/reply/147303" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd></li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-1c47a59a05cd4fce69270b20b8272540" value="form-1c47a59a05cd4fce69270b20b8272540" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="81831929" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>