Cabinet approves petroleum refinery for Hambantota

Friday, 8 March 2019 00:00 - - {{hitsCtrl.values.hits}}

$ 4 billion investment, project to commence later this month
Plant to have a capacity of 10 million metric tonnes per year
Joint investment from Singapore and Oman
Tender to supply crude oil to State refinery goes to another Singaporean company

The Government yesterday approved a proposal to build a new export-oriented petroleum refinery in Hambantota, with a capacity of 10 million metric tonnes per year.

The proposal, presented by Development Strategies and International Trade Minister Malik Samarawickrama during the special Cabinet meeting held on Wednesday, informed the Ministers that a joint commercial entity, formed by Singaporean company Silver Park International Ltd. and the Ministry of Oil and Gas of the Sultanate of Oman, will manage the operations of the plant.

“The investment is to be over $4 billon and the construction will kick off on 24 March,” Development Strategies and International Trade Deputy Minister Nalin Bandara told Daily FT.

The proposal made by Samarawickrama to the Cabinet also gave approval to lease out 400 acres of land, required to establish the proposed plant, to the investor.

Another proposal made by Highways and Road Development and Petroleum Resources Development Minister Kabir Hashim, to award a tender for the supply of Murban crude oil to Swiss Singapore Overseas Enterprises Ltd., was also approved by the Cabinet of Ministers.

The company is to supply crude oil for a period of eight months, information made available by the Cabinet Office stated.