Home / Front Page/ Oman Oil Minister excited to be part of Sri Lanka oil refinery project

Oman Oil Minister excited to be part of Sri Lanka oil refinery project


Comments / {{hitsCtrl.values.hits}} Views / Monday, 25 March 2019 00:15


Reuters: Oman’s Oil Minister said on Sunday he was excited to be part of the Sri Lanka oil refinery project, in a sign that plans for the sultanate’s involvement may be back on track. 

Sri Lanka said last week that Oman Oil Co. had made clear it was interested in taking a 30% stake in the new refinery on Sri Lanka’s south coast. 

But an Omani official denied the Middle Eastern country had agreed to invest in the project. 

Oman Oil...

Rumhy joined Sri Lankan Prime Minister Ranil Wickremesinghe at the laying of the foundation stone for the planned $3.85 billion oil refinery at Hambantota on the south coast, which would potentially be the island’s biggest foreign direct investment. 

“This is not a project just for three years. This is a lifelong project,” Rumhy said at the launch ceremony held at the Mirijjawila investment zone in Hambantota. “We will work very hard to deliver this project to the people of Sri Lanka.” However, he did not comment on whether Oman planned to have a direct stake in the refinery. 

The refinery will be built near a $1.4 billion port controlled by China Merchants Port Holdings. 

The India-based Accord Group is the main investor in the refinery project through a Singapore entity it controls. 

The project will be Sri Lanka’s first new refinery in 52 years after Iran built a 50,000 barrel-per-day refinery near the island’s capital city of Colombo to blend Iran light oils. 

The new refinery will export all products it refines, officials have said. “We have Chinese investment, we have Indian investments, we have Oman interest for investment, and we have investment interest from many other countries,” Wickremesinghe said at the event. “It shows that Hambantota will become the multinational investment zone.” A senior Sri Lankan minister, who declined to be identified because he is not authorised to talk to the media, told Reuters that Oman had given a commitment to invest in the refinery and there would not be any turning back. 

But on Wednesday, Salim al-Aufi, the Undersecretary of Oman’s Oil & Gas Ministry, said “no one on this side” was aware of the investment. 

Sri Lanka’s investment board said last week that another Oman entity, Oman Trading International, was willing to supply all of the refinery’s feedstock needs and take on the marketing of the oil products it would produce. 

India and China have been vying for political influence in Sri Lanka in recent years, with investment a key part of the battleground. 

China is the biggest buyer of Omani oil. In January it imported about 80% of Oman’s crude exports, Oman Government data shows. 

An investment zone is planned by China Harbour Engineering Corp alongside the port.

 

Largest ever FDI sign of working Govt. says PM


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Peace, business and prosperity

Saturday, 7 December 2019

Every nation, every community and each individual is facing the social and political impact along with the impact of violence. Interpersonal violence results in medical, policing and judicial costs immediately after the violent incident occurs and it


‘Data is the new oil’: An introduction to the proposed Data Protection Act

Friday, 6 December 2019

Data protection is not a concept we, in Sri Lanka, are familiar with. Globally, the laws surrounding data protection have been around for about 20 years. And we are only just about getting started. The proposed ‘Data Protection Act’ (hereinafter


Education: An integral part of entrepreneurship development

Friday, 6 December 2019

Governments across the world have recognised the importance of State intervention to encourage private sector innovation towards strengthening entrepreneurships in order to capitalise on comparative and competitive advantages. The main pillar of entr


Moving away from an insular mindset concerning the tea export business

Friday, 6 December 2019

Sri Lanka mainly produces Orthodox teas as opposed to CTC teas which are largely used in producing tea bags. We are ahead of others in the former category but unfortunately way behind on the latter due to our closed and insular policies. Assuming an


Columnists More