Minister of Energy Udaya Gammanpila today revealed that the Lanka IOC PLC and the Ceylon Petroleum Corporation have reached a decision to develop 61 tanks in the Trincomalee oil tank complex through a joint venture.
Speaking during a media briefing in Colombo today, Minister Gammanpila said a decision was also reached to lease 14 tanks in Trincomalee currently in use by the IOC for another 50 years.
The Minister said the 61 tanks will be vested with the Trinco Petroleum Terminal Ltd, in which CPC will own a majority of shares of 51, while the remaining 49 shares will be owned by Lanka IOC.
He said four out of the seven directors of the Trinco Petroleum Terminal Ltd are appointed by the CPC and it will be chaired by the CPC.
The Minister said the company will be established in such a manner that accounts will be audited by the Auditor General’s Department, while officials can be summoned to the Committee On Public Enterprises and MPs can question the subject Minister on related matters.
Minister Gammanpila claimed CPC will have control of 85 tanks out of the 99 tanks at the Trincomalee oil tank complex as the CPC has direct ownership of 24 tanks in addition to the aforementioned 61 tanks.
He said Lanka IOC will only receive 14 tanks.
Commenting on the decision to halt operations at the Sapugaskanda Oil Refinery from the 3rd of January 2022, Minister Gammanpila claimed the Refinery will resume operations by the 26th or 27th of January as a ship carrying crude oil is expected to arrive by the 24th of January.
When questioned by media as to why the government is unable to continue operations, he cited the dollar crisis as the reason.