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Lanka IOC, IndianOil’s subsidiary in Sri Lanka, is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates retail petrol / diesel stations in Sri Lanka.
It has been incorporated to carry out retail marketing of petroleum products, bulk supply to industrial consumers, building and operating storage facilities at the Trincomalee Tank farm, etc., thereby not only providing energy security and supply stability for Sri Lanka but also upgrading the overall standards of service, particularly in the retail sector in the nation.
Lanka IOC is making phased investments to the tune of about INR 450 crore to provide world-class quality petroleum products and services at the most competitive prices to the Sri Lankan customers. It took over 100 CPC-owned petrol/diesel stations in February 2003 and commenced retailing products to customers. Subsequently, it took over 59 dealer-owned franchisee retail outlets.
The outlets are being refurbished with world-class, state-of-the-art facilities and services at par with international standards. Lanka IOC, through its retail chain, is also making available non-fuel facilities like convenience stores, 24-hour ATMs, automatic carwash, food marts, etc. This will not only give value-for-money to the motorists but would give altogether a new refueling experience. The refurbished stations of Lanka IOC have brought praise from all sections of the Sri Lankan society.
Lanka IOC has also acquired the China Bay Tankfarm of World War II vintage, which is of historic and strategic significance, being the largest tankfarm located between the Middle East and Singapore. The tankfarm connects to the Trincomalee harbour, which is the 5th largest all-weather, non-tidal natural harbour in the world, with a 56 km shoreline, making this tankfarm most effective for fuel receipt, storage and supply. The tankfarm, formerly owned and operated by CPC, has a total of 99 tanks, each with a capacity of 12000 kilolitres. Currently, only 15 of these tanks are operational. Lanka IOC intends to develop the tankage on need basis, as the volume of its downstream marketing operations in Sri Lanka grows.
An 18,000 tonnes state-of-the-art lube blending plant is also being constructed at a cost of INR 22 crore for commissioning by September 2007 at Trincomalee Tank farm. Progressively, Lanka IOC will also look at introducing Auto LPG (Autogas), Aviation Fuel and INDANE LPGas in Sri Lanka, besides its world-class lubricants SERVO, which is already an established brand there.
IndianOil’s entry into Sri Lanka is in line with its Corporate Vision of becoming a transnational energy major. While expanding its market base to convert the surplus avails of petroleum products into more wealth for stakeholders, IndianOil is also committed to being a good strategic partner to Sri Lanka. IndianOil’s vast experience in downstream petroleum operations in India will help create a healthy and competitive petroleum industry in Sri Lanka for the larger benefit of the island nation.
At present, the Sri Lankan petroleum market has a demand of 3.5 million metric tonnes per annum (MMTPA) and a refining capacity of 2.2 MMTPA. CPC, the other important player in the petroleum sector has about 1,070 retail outlets in Sri Lanka.
The surplus refining capacity in India will be used to bridge the existing gap between demand and supply in Sri Lanka. Lanka IOC intends to harness the advantages of geographical proximity between India and Sri Lanka, resulting in low freight rates in transportation and IndianOil’s superior R&D capabilities, to provide petroleum products at the most competitive price to the Sri Lankan market. A term contract valued at US$ 120 million between CPC and IndianOil is already in place for supply of 0.5 MMT products to CPC and supplies have commenced since September 2002. In addition, Lanka IOC’s retail volumes are also being replenished by IndianOil from Indian refineries, the first such supply having commenced in March 2003.
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Contacts
Mr. K. Ramakrishnan,
Managing Director
Lanka IOC PLC.
20th Floor, West Tower, World Trade Centre,
Colombo, Sri Lanka
Tel: 00 94 1 475720, 00 94 1 475700
Fax: 00 9411 2391490
Email: lankaioc@lankaioc.com
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