The Cabinet of Ministers has given its approval to the proposal tabled by the Minister of Power, for the implementation of Trincomalee Oil Tank Farm development project with India.
Thereby, 61 tanks at the oil storage complex will be jointly developed by the Ceylon Petroleum Corporation (CPC) and Lanka IOC as a joint venture.
Lanka IOC is a subsidiary of the Indian Oil Corporation which is under the ownership of India’s Ministry of Petroleum and Natural Gas.
A subsidiary company named Trinco Petroleum Terminal Pvt. Ltd. is slated to be established for the joint development of these 61 oil tanks.
According to the government, the CPC will retain 51% of the shares from this joint venture while Lanka IOC holds on to 49%.
Meanwhile, the Cabinet has given its nod to further lease out Lanka IOC-run 14 oil tanks of the Lower Oil Tank Complex to the company for its business activities.
Additionally, 24 oil tanks will be allocated for the business activities of the CPC as approved by the Cabinet.
Sri Lanka and India reached the agreement to implement a project to jointly develop Trincomalee Oil Tank Farm, after reviewing three existing deals between the countries through diplomatic talks.
