New deal on Trinco oil tanks publicised

The Energy Minister Udaya Gammanpila has published the new agreement signed between the Government and Lanka IOC PLC on the 99 oil tanks in Trincomalee. 

The agreement has been posted on the Energy Ministry web site www.energymin.gov.lk and the Ceylon Petroleum Corporation website www.ceypetco.gov.lk.

The move follows the agreement, signed on 6 January, being tabled at the Cabinet meeting on Monday (10 January). Previously, Cabinet at its meeting on 3 January had approved the deal. 

Gammanpila said the agreement would be tabled in Parliament next week. 

The Finance Ministry last week signed relevant agreements with Lanka IOC to develop the Trincomalee Oil Tank Complex, which was previously under the control of the LIOC as a project with the majority of the tanks under the control of the CPC. 

The tank complex will be divided between three institutions for a period of 50 years. CPC will hold 24 tanks, whilst Trinco Petroleum Terminal Company (TPTC) and a JV between CPC (51%) and LIOC (49%) will hold 61 tanks. Separately LIOC will hold 14 tanks.