No agreement with Oman Oil Ministry for refinery: BOI

Friday, 22 March 2019 00:05 - - {{hitsCtrl.values.hits}}

Says Oman Oil Company has intention to sign up for 30% equity if agreement reached with Indian company

The Board of Investment (BoI) yesterday denied there was an agreement between the Oman Oil and Gas Ministry and Silver Park International to build a $ 3.8 billion refinery in Hambantota but insisted that the project would move ahead.

Responding to a Reuters report that the Oman Ministry had denied they had taken a 30% stake in the venture, the BOI said it was the “intention” of the Oman Oil Company to participate with 30% equity if an agreement is reached.

“We are aware that there is no agreement that has been signed between Oman’s Ministry of Oil and Gas and Silver Park International PTE Ltd with regard to equity arrangements of the project. However, we are aware that Oman Oil Company has registered their firm intention to participate in equity up to 30%, subject to reaching agreement between the parties,” a short statement from the BoI said.

“Furthermore, we are aware that Oman Trading International is willing to supply the entire feedstock requirement of the project as well as do the marketing for the products, upon reaching mutually agreed terms. The investor - Silver Park International PTE Ltd - has conveyed to the Board of Investment their full confidence in implementing the project.”

The article by Reuters also said that Silver Park was in fact a Singapore investment vehicle owned by India’s Accord Group. Government officials this week said the project would kick off on Sunday but that an Environment Impact Assessment (EIA) has still not been completed. The venture is to be given a land area of 585 acres in total: 200 acres will be given from Mirijjawila Industrial Zone, while another 385 acres of land belonging to the Mahaweli Authority will be released for the project.