Deal on Trinco oil tanks ‘historic’ and mutually beneficial, says Lanka IOC

Lanka IOC Plc has described the deal on the Trinco oil tanks as “historic” and mutually beneficial to the two countries.

“This is a historic moment for both the countries which will pave the way for unfolding numerous opportunities and further strengthening of strong bilateral relationship,” Lanka IOC Managing Director Manoj Gupta said in a statement. 

On Thursday, Lanka IOC participated in the signing of various agreements and documents related to the development and use of the Trincomalee Oil Tank Farms (OTF). 

Representatives from various departments of the Government, including the Ministry of Energy, Ceylon Petroleum Corporation (CPC), Lanka IOC (LIOC), and the joint venture between CPC and LIOC named Trinco Petroleum Terminal Ltd. participated at the signing ceremony.

Gupta observed that LIOC would like to convey its sincere gratitude and thanks to the Governments of India and Sri Lanka including the concerned ministers and officials for their support which made this possible.

The joint venture between LIOC and CPC known as TPTPL will develop and use 61 tanks in the Upper Tank Farm of the OTF. The remaining 24 tanks in the Upper Tank Farm will be developed and used by CPC. LIOC will be able to develop and use the Lower Tank Farm of the OTF, which has already been developed by it. LIOC had been invited to develop the OTF in 2003.

LIOC said: “This significant understanding to facilitate the further development of the OTF and the realisation of its full potential has been made possible by the unstinting support of governments and relevant departments on both sides as well as the close cooperation between CPC and LIOC. 

“The understanding will enable LIOC to enhance its investments in Sri Lanka as well as further expand its role in strengthening energy security, creating jobs locally, generating revenue and facilitating the introduction of new technology and products in the country.” 

LIOC has already created about 175 direct jobs and more than 5,000 indirect jobs in the country which are predominantly held by Sri Lankan nationals. LIOC’s investments in Sri Lanka so far have exceeded $ 100 million.