Cepetco strikes deal to buy oil from Oman

Saturday, 24 March 2012 00:00 - - {{hitsCtrl.values.hits}}

Sri Lanka, affected by the sanctions imposed by the United States on Iranian oil, has entered into an agreement with Oman to buy oil from that country ahead of the US deadline.

Ceylon Petroleum Corporation Chairman Dayananda Vidanagama Arachchi on behalf of Sri Lanka and Oman Oil Corporation Chairman Nasheer Al Jasmi inked the agreement Thursday at the Petroleum Ministry.

The agreement was signed in pursuant to a discussion held by an Omani delegation currently on a visit to Sri Lanka with Minister of Economic Development Basil Rajapaksa and the Secretary to the Treasury Dr. P.B Jayasundera Thursday. Meanwhile, the Petroleum Corporation has also entered into another agreement with Vietnam to buy petroleum from that country.

Petroleum Ministry officials have reportedly said that Sri Lanka plans to stop crude oil imports from Iran from 29 March, ahead of the US deadline of 28 June. Sri Lanka depends almost entirely on Iran for its crude oil supplies and the country’s only refinery at Sapugaskanda that processes 50,000 barrels per day can only process Iranian crude.

Sri Lanka recently held discussions with Oman and the oil-rich Gulf country has assured its help for Sri Lanka to meet its gas and oil needs in the event of a fuel crisis brought on by the United States sanctions on Iran’s oil exports.