Oil Spurt

Sri Lanka is close to signing a US$ 800 mn joint venture with a US based energy firm, to double oil refining capacity at its Sapugaskanda refinery and save on its fuel bill. Sri Lanka is close to signing a US$ 800 mn joint venture with a US based energy firm, to double oil refining capacity at its Sapugaskanda refinery and save on its fuel bill.

State owned Ceylon Petroleum Corporation (Ceypetco) is in talks with US based firm Global Energy and Industrial Operations Inc. (GEIO), Ceypetco Chairman Jaliya Medagama told LBO on Friday.

The refinery will up the existing 50,000 MT capacity to 150,000 MT. Sri Lanka consumes about 3.6 mn MT of fuel each year.

A Build, Own, Operate and Transfer project, the company will manage the plant for about a 30 year period before handing it back to Ceypetco, Medagama said.

The project also plans to change technical specifications at the refinery to turn out higher value products like diesel oil and less of low value products like furnace oil.

The refinery currently turns out a mix of diesel, kerosene, petrol, furnace oil and naphtha. A new refinery with private investment is expected to treble locally available refining