Lubricant Lease

Oct 23, 2008 (LBO) – Chevron Lubricants Lanka said Thursday it was seeking to extend the lease on the land on which it has its lubricant plant which runs out in July next year.

To receive instant alerts from LBO on your Dialog mobile type ‘lbo’ and send to 678

The Sri Lankan unit of the Chevron oil multinational said in a stock exchange filing that the company owned the plant and equipment and that the lease only relates to the land.

It said the firm’s land lease agreement with the state-owned Ceylon Petroleum Terminal Storage Ltd (CPSTL) will expire on July 13, 2009.

“The initial lease for the land executed during the privatization processes was for a period of 10 years from July 14, 1994 and subsequently extended for a further period of five years.”

The company said it is having discussions with the Ministry of Petroleum, under which CPSTL comes, for an extension of the lease.

“Based on the response from the Ministry, which is expected within the next two months, the company would be making an announcement to the shareholders on the go forward plan in respect of supply chain strategy for the business.”

Chevron L