Oman reaffirms commitment to form joint venture for new oil refinery in Sri Lanka
Oman has reportedly reaffirmed its commitment to participate in a joint venture to set up an oil refinery with a capacity of 10 million tonnes a year in Sri Lanka’s southern city of Hambantota.
The proposed oil refinery will be in close proximity to the Hambantota Port currently operated by a Chinese firm.
Sri Lanka’s state owned investment promotions agency, the Board of Investment (BOI) has said in a statement that the assurance was given during talks between a Sri Lankan government team and Omani authorities.
The Sri Lankan team comprised Minister of Development Strategies and International Trade Malik Samarawickrama, Petroleum Minister Kabir Hashim and Industries, Commerce Minister Rishad Bathiudeen, and BOI chairman Mangala Yapa.
According to the BOI, the delegation had held “productive discussions” with Mohammed Hamed Al Ruhmy, Minister of Oil and Gas of Oman, officials of the Oman Oil Company and Orpic, the integrated oil and petrochemical company (Oman Oil Refineries and Petroleum Industries Company) during their recent visit to the Sultanate.
Chairman and senior officials of Silver Park International, Singapore, the main partner in the joint venture, had also participated in the discussions.
“The Minister of Oil and Gas and Orpic reiterated their firm interest to partner in this project and proposed to establish a Joint Task Force to finalise details expeditiously,” the BOI statement said.
“The discussions focused on the possible modalities of strategic partnership of Orpic in the proposed greenfield oil refinery to be established in Hambantota, both as an investor and as a strategic partner together with Silver Park International and possible expansion into petrochemicals,” the BOI has stated.
“Orpic is currently in the final stages of construction and commissioning of a state-of-the art petrochemical complex in Sohar, Oman and the visiting delegation had an opportunity to take part in a familiarisation visit to the complex.”
OSL take:
The setting up of a new oil refinery as a joint venture between Oman and a Singaporean company would result in the development of the country’s petroleum sector. Given the proposed refinery’s proximity to the Hambantota Port, it would be an ideal business venture providing good returns. Sri Lanka’s petroleum sector would undergo positive developments as a result, creating business opportunities for discerning investors.
| Article Code : | VBS/AT/13052019/Z_2 |