Opportunity to Modernize and Upgrade Sapugaskanda oil Refinery
We present an excellent opportunity to modernize the Sapugaskanda Petroleum Refinery facility, solely owned by the Government of Sri Lanka (GOSL). The Refinery, established in 1969 and operated by the Ceylon Petroleum Corporation (CPC), has been a cornerstone of the country’s energy industry for over five decades. It has played a vital role in ensuring energy security, supplying quality fuel, and contributing to industrial and technological advancement. Currently the refinery is only able to meet about 25% of the domestic demand for refined petroleum products while the balance 75% has to be imported creating further pressure on foreign exchange. Additionally, the refinery has been instrumental in saving foreign exchange, which is a point of pride for both the corporation and the nation. Despite its significance, the refinery has faced challenges in meeting the country’s increasing energy demand over the past two decades. Development initiatives have been hampered by various factors, leading to an urgent need to modernize the facility to meet the current demand and quality standards. One of the primary obstacles to past development efforts has been the financing of the project, which requires significant foreign currency investment. To secure essential financing for the project, a proposal has been put forward to separate the CPC and the refinery into distinct, independent entities and to be established as a government-owned entity. To facilitate the upgrade of its infrastructure and enhance production quality and quantity, the refinery will select a Strategic Investment Partner through an Expression of Interest (EOI) process. This approach aims to attract suitable partners and ensure the refinery’s alignment with market demands and standards, with the ultimate goal of increasing production quantity to 100,000 barrels per day. Current Production capacity 50,000 barrels per day. The refinery has historically processed various types of crude oil, including Iranian Light, Arabian Light, Upper Zakum, Miri Light, Oman Blend, Das Blend, and Murban, along with their blends, despite being designed originally for Iranian Light crude equivalent. However, the refinery can supply only around 30% of the country’s demand for petrol and diesel, more than 90% of fuel oil, and over 80% of JET A1. The facility boasts an installed capacity of 16.5 MVA on-site, supplemented by a dedicated 5 MVA grid connection serving as standby facility. The site’s power connectivity to the national grid is a distinct advantage, as it allows for easy enhancement as needed with minimal modifications. Don’t miss out on this chance to enter a profitable business. Explore exceptional investment opportunities in Sri Lanka with our Consultancy & Business Advisory services which facilitates opportunities for investors big and small who wish to explore lucrative business in Sri Lanka. Our business options and expertise will guide you on the right path. Contact us today to learn more and secure a feasible investment opportunity in Sri Lanka.
| LOCATION : | Sri Lanka |
| SECTOR : | Power & Energy |
| PROJECT VALUE : | Contact OSL |
| EXPECTED INVESTMENT : | Contact OSL |
| INVESTMENT TYPE : | Contact OSL |
| RETURN ON INVESTMENT : | Contact OSL |
| OPPORTUNITY CODE : | VBS/OP/20240425/X_2 |