Trincomalee Oil Tank Farm: Search for private investor still in progress
The Morning: The identification of a suitable private investor for the joint development of the Trincomalee Oil Tank Farm in partnership with Trinco Petroleum Terminal Ltd. (TPTL) remains ongoing, with parties awaiting the constitution of the Cabinet-appointed committee to evaluate the proposals submitted by prospective investors.
Speaking to The Sunday Morning Business, Lanka IOC PLC (LIOC) Managing Director Dipak Das revealed that the process initiated last year to identify a suitable private investor for the joint development of the 61 oil tanks allocated to TPTL had yet to reach a conclusion.
“We are waiting for the committee to be constituted,” he stated.
However, he declined to provide any specifics on the number of proposals received and the identities of such bidders, claiming that all such information would be made public in due course.
Das further revealed that TPTL had not commenced the refurbishment of the oil tanks allocated to it and intended to wait until the conclusion of the aforesaid tender process.
He added that while they had formulated a business plan for the oil tank redevelopment project under TPTL, the precise scope of the proposed venture would be determined by a committee appointed by the Cabinet of Ministers.
TPTL is a joint venture between LIOC and the Ceylon Petroleum Corporation (CPC).
The Trincomalee Oil Tank Complex Development Project was approved by the Cabinet of Ministers on 4 January 2022. Accordingly, it was decided that 24 of the 99 tanks would be given to the CPC, 14 tanks to LIOC, and 61 tanks to TPTL – the latter on a 50-year lease, with the CPC having the majority stake in the subsidiary.
Consequently, LIOC and the CPC entered into an agreement on 6 January 2022 for the joint development of the 61 tanks held by Trinco Petroleum Terminal as a joint venture. The CPC holds a 51% stake in the company while LIOC holds a 49% stake.
OSL take:
Sri Lanka’s ongoing development drive has presented many business/investment opportunities to foreign businesses/investors. As the country embarks on a journey to become a regional hub supported by Sri Lanka’s strategic positioning in the Indian Ocean, the strong trade ties enjoyed with many foreign countries and the business conducive environment in the country, the overall economic expansion has opened a host of business/investment opportunities. One of the fast-expanding sectors is the country’s energy industry. While Sri Lanka has opened its retail fuel markets to include foreign players, the country needs further expanding the energy industry resulting in the expansion of business/investment opportunities in the industry and related sectors. This has resulted in the need to expand the infrastructure and supplementary infrastructure facilities in the country’s energy industry and related sectors. Given that Sri Lanka is now seen as an emerging business destination in the South Asian region working towards becoming a regional hub, the business/investment opportunities in Sri Lanka’s energy industry and related sectors present a host of lucrative ventures. The growth and business potential in Sri Lanka’s energy industry could therefore be confidently explored by foreign businesses/investors.
| Article Code : | VBS/AT/20250813Z_2 |