Companies from India, China, America, Japan eye Sapugaskanda oil refinery

• 20 companies responds to EOI invitation
• After the agreement period, the total asset will be transferred to CPC
• Project aims to significantly enhance Sri Lanka’s domestic petroleum refining capacity at Sapugaskanda to a capacity of around 100,000 barrels per day

By Kelum Bandara   

Twenty companies including from countries such as China, India, the United States and Japan have responded to Sri Lanka’s invitation for Expression of Interest (EOI) to develop and expand the Sapugaskanda oil refinery, an official said yesterday.   
The Ceylon Petroleum Corporation (CPC), invited EOI from reputed and experienced financiers or investors to submit an EOI for the development and expansion of the Sapugaskanda Oil refining complex.   
According to the EOI document, the project aims to significantly enhance Sri Lanka’s domestic petroleum refining capacity at Sapugaskanda, Sri Lanka to a capacity of around 100,000 barrels per day (bpd).The prospective financer or investor is expected to design, finance, and build the proposed refinery development project while commissioning, operation and maintenance are to be done jointly with CPC through a joint venture agreement.   
Throughout the agreement period, CPC will hold an ownership share by providing the existing refinery infrastructure and land required for the project, the document said.   
 After the agreement period, the total asset will be transferred to CPC. The redevelopment and expansion project represents a strategic opportunity to establish a long-term partnership within Sri Lanka’s energy sector. It will help strengthen the country’s energy security, reduce dependence on imported refined petroleum products, and enhance overall economic security.   
The project seeks to enhance the current refining capacity from 50,000 BPD to around 100,000 BPD or more to meet the total national fuel demand through refining crude oil domestically.   
CPC Chairman D.A. Rajakaruna told Daily Mirror that the prospective companies are now being shortlisted.   
He said that the companies from different companies had responded to the invitation for EOI.   
“Currently, they are under review by the relevant committee. There are companies from India, China, the United States and the UK,” he said.