In a press conference held on Friday, Dec 30, Udaya Gammanpila, Minister of Energy announced the leasing of 14 tanks in the Trincomalee oil farm have been extended for another 50 years. In addition to that, the Minister clarified that 85 out of a total of 99 tanks in the oil farm would be managed by the Ceylon Petroleum Corporation (CPC).

An agreement is to be signed between Lanka IOC (LIOC) a subsidiary of the Indian Oil Corporation. and CPC where 61 other tanks are expected to be developed by Trincomalee Petroleum Terminals Ltd (TPT) and LIOC as a joint venture.

“61 tanks are to be jointly developed by LIOC and CPC. With 51% shares owned by CPC and LIOC to own 49% shares,” said Gammanpila.

The Minister said that he had submitted the cabinet paper to the cabinet secretariat which was signed by himself and the Minister for Lands and Land development. Furthermore, he said, “This cabinet paper will be taken up in the forthcoming cabinet meeting which will take place on the 3rd of January.”

If the cabinet paper is approved by the cabinet, the minister said he will be able to fix a date for the signing of the agreement. If signed, the agreement allows CPC and its subsidiary company the TPT to control 85 of the 99 oil storage tanks in the Trinco Oil Storage facility where LIOC will control only 14 tanks.

“The control over the Trinco oil storage facility, which was handed over to India by agreements made in 1987 and 2003, transferred back to Sri Lanka, is a historic triumph,” said He.

TPT, the newly established subsidiary of the CPC which was created to accommodate the deal between India and Sri Lanka is expected to manage 61 tanks that are yet to be developed.

The oil tank facility is owned by the CPC and currently manages 25 tanks.

Meanwhile, sources within CPC said that the Minister of Energy is expected to officially launch TPT in a grand ceremony soon and that all arrangements with regard to the same are underway.

Translation Credits: Lahiru Doloswala