Oil Deals

Kris Canekeratne at LBR LBO Tech Conference

Colombo, 2012 (LBO) – Sri Lanka is buying refined products from State-run Vietnam Oil and Gas group (PetroVietnam) favourable terms and is also getting credit facilities, petroleum minister Susil Premajayantha said. Sri Lanka’s state-run petroleum refinery, which is more suited processing Iranian crude has had trouble with other types after it became more difficult to import oil from the country following US led sanctions.

“It is a term contract so it is below the spot market prices,” he said. “We are getting three months credit.”

Premayantha said the purchases have been going on for some time and stemmed from an agreement signed following a visit by President Truong Tan Sang last year.

At the time Sri Lanka struck a deal to buy diesel from PetroVietnam’s Singapore based trading arm.