The Government is currently in the process of identifying a suitable private investor for the joint development of the Trincomalee Oil Tank Farm in partnership with Trinco Petroleum Terminal Ltd. (TPTL), with the announced refurbishment of the 61 tanks allocated to TPTL currently at a standstill until a private investor is identified.
Speaking to The Sunday Morning Business, Lanka IOC (LIOC) Managing Director Dipak Das revealed that no decision had been made yet on how the 61 tanks allocated to TPTL would be developed.
He said that the Sri Lankan Government was still engaging in discussions with the relevant departments and would arrive at a decision shortly.
Das further revealed that the Government had, for the purpose of identifying a suitable strategic investor for the joint development of the 61 oil tanks allocated to TPTL, commenced an Expression of Interest (EOI) process last year.
“EOIs were called last year, so the final process with regard to it is ongoing,” he stated.
He further stated that repairing and development of the oil tanks allocated to TPTL would take place after a suitable private investor was determined following the Request for Proposal (RFP) process.
However, Das further clarified that TPTL had partly commenced the refurbishment of 10 oil tanks by clearing the site and cleaning the tanks. However, the complete refurbishment of all these oil tanks will be undertaken only once the new investor is brought on board.
TPTL is a joint venture between LIOC and the Ceylon Petroleum Corporation (CPC).
The Trincomalee Oil Tank Complex Development Project was approved by the Cabinet of Ministers on 4 January 2022. Accordingly, it was decided that 24 of the 99 tanks would be given to the CPC, 14 tanks to LIOC, and 61 tanks to TPTL – the latter on a 50-year lease, with the CPC having the majority stake in the subsidiary.
Consequently, LIOC and the CPC entered into an agreement on 6 January 2022 for the joint development of the 61 tanks held by TPTL as a joint venture. The CPC holds a 51% stake in the company while LIOC holds a 49% stake.