Jan 30 (LBO) – Lanka Indian Oil Corporation has called for vessels to supply lubricant base oil for its new blending plant in the East of Sri Lanka, which is to begin production in June this year. Last week, the fuel retailer, a unit of Indiaâ€™s Fortune 500 Indian Oil Corp got a government licence to blend lubricants, alongside Caltex Lanka.
Work began on the 5-million dollar plant in January this year and will have an18,000 metric tonne annual production capacity.
The company said that it was now looking for ocean tankers that could supply the lube plant through the Trincomalee port, for import from Mumbai, Chennai and Haldia in India.
Initial plant requirements are 300 to 600 kilolitres each of three grades of base oil every three months, with the requirements likely to go up in future, LIOC said in a public notice on Tuesday.
The company has been importing the Servo brand of lubricants as packed products since 2003, and currently has an estimated 16 percent of the lubricant market.
Lanka Indian Oil also holds an estimated 32 percent of the retail fuel market, operating over 150 fuel sheds around the island, alongside state owned Ceylon Petroleum Corporation.