“No truth” to reports of new refinery by Lanka IOC - Petroleum Min.

“No truth” to reports of new refinery by Lanka IOC - Petroleum Min.

April 28, 2012   11:51 am

The Ministry of Petroleum Industries says there is no truth to the allegations by certain media and groups claiming that Lanka Indian Oil Corporation has submitted a proposal seeking to construct a new oil refinery in Sri Lanka.

Approval has not been granted to any company, foreign or local, to establish a new oil refinery in the country, the ministry declared in a statement today.

The Petroleum Ministry stated that no policy decision has been taken regarding a project or proposal concerning a new oil refinery so far, except for the Iranian project discussed in 2007.

While the Ceylon Petroleum Corporation’s Sapugaskanda oil refinery, which can only process Iranian crude efficiently, is to be upgraded under a foreign loan in order to function with better efficiency and to process oil from various origins, the Petroleum Ministry assured that the refinery will continue to operate under the CPC following the revamping.

In an interview with Reuters yesterday (28) Petroleum Industries Minister Susil Premajayantha had said that the Sapugaskanda refinery has old technology and after the refurbishment with the latest technology, it will be able to use many crude oils.

“It is not going to cost more than $500 million. We are in the process of finding some donors or lenders,” he said.

On Thursday Indian Oil Corporation said it was ready to help the upgrade, but Premajayantha said the government had yet to finalize any decision.

“We have not given any green light to any party and we have not taken a final policy decision. What I can say is that, at the moment, definitely we are going to refurbish the existing one with a loan,” Premajayantha said.

The Petroleum Industries Ministry further emphasized today that the present government has taken no measures to handover completely the importing of distribution of fuel in the country to Lanka IOC or any other party. (AdaDerana) 

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