CPC seeks 870,000 barrels of oil products

Reuters: Ceylon Petroleum Corp (Ceypetco) is seeking 870,000 barrels of oil products for delivery in November, as the country’s sole refinery is shut after exhausting its supply of mainly Iranian crude oil, industry sources said on Wednesday.

Ceypetco’s total oil product imports for November are set to go up to 1.8 million barrels, up nearly three times from its October imports, traders said. The increase in the company’s requirements is due to a shutdown of its 50,000 barrels-per-day refinery for two weeks from 26 October, traders said.

The refinery, which is configured to run on Iranian crude, has been scrambling to fill a shortfall after it was unable to bring in Iranian crude, and had to shut while it waited for crude supply from the Middle East.

In its latest tenders, Ceypetco is seeking 300,000 barrels of 0.25 per cent sulphur gasoil for delivery on 25 November and a combination cargo of 135,000 barrels of gasoil and 175,000 barrels of jet fuel for delivery on 23 November.

It is also seeking 20,000 tonnes (or 130,000 barrels) each of high sulphur fuel oil and low sulphur fuel oil for delivery on 27 November. All three tenders close on 6 November, with up to 72 hours validity. Sri Lanka’s petroleum industries minister said on Wednesday that the country planned to invite tenders for term supply contracts as it hunts for alternatives to imports of Iranian crude curbed by US sanctions.