Overwhelming response from global firms to join SL’s petroleum industry

Monday, 29 August 2022 04:03 - - {{hitsCtrl.values.hits}}

Power and Energy Minister Kanchana Wijesekera confirms 24 firms from 10 petroleum-producing countries have submitted EOIs
Says Committee appointed by Ministry will evaluate submissions and issue RFPs
Opines selection process will be finalised in six weeks

Sri Lanka’s quest for companies from petroleum-producing countries to engage in importation, distribution, and retail activities, has received an overwhelming response, a top Minister confirmed yesterday.

“A total of 24 companies from the UAE, Saudi Arabia, US, China, India, Russia, UK, Malaysia, Norway, and the Philippines have submitted proposals for the Expression of Interest (EOIs) to engage in the petroleum businesses in Sri Lanka,” Power and Energy Minister Kanchana Wijesekera noted via Twitter yesterday.

The Ministry also arranged a pre-proposal conference for prospective firms which was held on 5 August through physical presence and zoom e-conferencing platform. Originally, the Government decided to liberalise the petroleum industry under the leadership of former President Gotabaya Rajapaksa on 27 June, following the Cabinet approval. Thereafter, a raft of measures was taken to work towards opening up the petroleum industry.

The Power and Energy Ministry called for EOIs from well-established companies in petroleum-producing countries with a permanent presence in any part of the supply chain on 25 July and on 10 August it got the Cabinet nod to a draft bill which received clearance from the Attorney General to amend the Petroleum Products Act (Special Provisions) No. 33 of 2002, to ensure the continuous supply of petroleum products due to the current severe foreign exchange deficit. “Committee appointed by the Power and Energy Ministry will evaluate proposals and issue Requests for Proposals (RFP) and finalise in six weeks,” Minister Wijesekera said.

The move to liberalise the petroleum industry came, as the Government struggled to secure $ 600 million monthly to import fuel, amidst the ongoing worst foreign reserves and economic crisis faced by the country.

On 25 July, the Cabinet of Ministers approved appointing an Advisory Committee and Officers’ Committee to ensure continuous supply through effective management of the limited fuel imports.

At present, the State-run Ceylon Petroleum Corporation (CPC) contributes around 80% of the total fuel supply to the country, while the remaining 20% is supplied by the Lanka Indian Oil Company (LIOC).

Earlier this month, LIOC was granted permission to open 50 filling stations across the country, in addition to the existing 216 fuel stations.

CPC affirms sufficient fuel stocks for countrywide distribution