DEVELOPMENT AND EXPANSION OF SAPUGASKANDA OIL REFINING COMPLEX AT SAPUGASKANDA
Ceylon Petroleum Corporation (CPC), has launched a landmark initiative to expand and modernise the Sapugaskanda Oil Refinery, the country’s only refinery, originally commissioned in 1969. The development plan aims to increase refining capacity from 50,000 barrels per day (bpd) to 100,000 bpd or more, significantly reducing dependence on imported refined petroleum products while ensuring long-term energy security. Currently, the refinery supplies about 30% of national demand, including 40% of auto diesel and 75% of aviation fuel (Jet A1/Kerosene). With Sri Lanka spending nearly USD 4.5 billion annually on petroleum imports, this project directly addresses one of the nation’s largest foreign exchange outflows.
Sapugaskanda offers a strategically advantageous location in the Western Province, with existing pipeline links to Colombo Port and key distribution terminals, expressway and railway connectivity, and proximity to major industrial and transport hubs. The site already possesses extensive infrastructure, including offshore crude oil unloading facilities, crude and product storage, dedicated water and power supply, and 324 acres of land for expansion. Under the proposed joint venture model, the selected investor will finance, design, and construct either an upgraded facility or a new adjacent refinery, incorporating energy efficient, and environmentally compliant technologies in line with EURO VI standards. CPC will contribute existing refinery assets, land, and infrastructure, while operations and maintenance will be jointly managed during the agreement period. Maintenance
| Tender Eligibility : | Contact OSL |
| Line Ministry : | Ministry of Energy |
| Line Agency : | Ceylon Petroleum Corporation (CPC) |
| Project Site : | Sri Lanka |
| Component Stander : | Funding available |
| Bid Security : | - |
| Bid Validity : | Can be Agreed up on Proposal Stage |
| Issuance of tender document : | Ceylon Petroleum Corporation (CPC) |
| Tender Document Fee : | - |
| Pre Bid Meeting : | 04th September 2025 @ 10:00 AM at the Ministry of Energy |
| Estimated Project Cost : | Contact OSL |
| Contract Period : | Contact OSL |
| Tender Closing Date : | 26th September 2025 |
| Funding : | Financed by the Bidder |
| Tender Code : | VBS/TD/20250820/Y_1 |