Sri Lankan government awards contract to Swiss Singapore Overseas Enterprises for crude oil supplying
The Government Information Department of Sri Lanka has reportedly stated that Swiss Singapore Overseas Enterprises Pte. Ltd., a commodity trader, has won a contract to supply Murban crude oil to the country’s state-run Ceylon Petroleum Corporation (CPC).
A statement has noted that the proposal for the eight-month contract by Sri Lanka’s Minister of Highways and Road Development and Petroleum Resources Development Kabir Hashim was approved by the Cabinet of ministers this week.
However, the amount of crude and price was not revealed.
Swiss Singapore Overseas Enterprises, part of India’s Aditya Birla Group, had won a similar contract last April as well to supply seven million barrels of Murban crude oil to CPC.
According to reports, CPC’s 50,000 barrels per day refinery is old and optimised for refining Iranian crude but Sri Lanka has been trying to diversify supply sources after American sanctions on Iran disrupted supplies from Iran.
OSL take:
The awarding of a crude oil supply contract to Swiss Singapore Overseas Enterprises is indicative of the many areas of business for foreign enterprises with Sri Lanka. Foreign businesses/investors could explore opportunities in Sri Lanka to invest in a business in the island nation or play a role as a supplier of goods and services to the country.
| Article Code : | VBS/AT/11032019/Z_11 |