Sri Lanka to purchase petrol, diesel through long-term contracts

oil-pump

Mar 16, 2017 (LBO) – Sri Lanka’s cabinet nod has been received to purchase petrol and diesel through long-term contracts for a period of eight months starting from March.

Petroleum Minister Chandima Weerakkody has made a proposal for the purchase of 4,200,000 Bbls of Diesel (Max. sulphur percentage 0.05) and 956,250 Bbls of Petrol (92 Unl) through two long-term contracts.

Ceylon Petroleum Corporation said the proposal has been made after considering the stock level and ullage of Ceylon Petroleum Storage Terminal Limited and in line with the forecasted data on refinery production.

“Product quantities and combinations of the two contracts were based on the local demand for each product and the storage limitations within the country,” Weerakkody said.

Accordingly, the cabinet has decided to award the tenders to Swiss Singapore Overseas Private Ltd and Gunvor Singapore Private Ltd as recommended by the cabinet appointed special procurement committee.

“Approval has been granted by the special procurement committee based on the technical evaluation committee recommendation for the two tenders.”