Cabinet nod to buy 450,000 barrels of crude oil on six-month credit from Cyprus firm

The Cabinet of Ministers this week approved the acceptance of an unsolicited proposal for the supply of 450,000 barrels of crude oil for the Sapugaskanda Refinery from Terra Nevis Group in Cyprus on a six-month credit.

“An unsolicited proposal has been made by the Terra Nevis Group in Cyprus to supply the crude oil required for the refinery,” Cabinet Co-Spokesman Dr. Ramesh Pathirana said at the post-Cabinet meeting media briefing yesterday.

He said the proposal made to supply crude oil under the 180-day credit was evaluated and recommended by the Cabinet-appointed Special Standing Procurement Committee after which Energy Minister Udaya Gammanpila submitted the proposal for Cabinet approval.

“Steps have been taken to obtain oil for the Sapugaskanda Oil Refinery till July and this arrangement is to procure crude oil required for the rest of the year.”