IndianOil arm studies refinery option in Trincomalee
New Delhi   16-Oct-2007
Moves are afoot to explore the possibility of setting up an oil refinery at the war-ravaged Trincomalee by Lanka IOC, the subsidiary of the IndianOil . "There is nothing formal. We have held talks with the IndianOil to this effect. But there is yet to be any formal application," Petroleum and Petroleum Resources Development Minister AH M.Fawzy told PTI here. Lanka IOC is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates retail petrol 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. Lanka-IOC PLC Chairman Mr. Sarthak Behuria, in the annual report of the company, said that the public sector giant was interested in setting up a refinery at Trincomalee in Eastern Sri Lanka after taking into account plans to increase the country's domestic refining capacity. The annual demand for petroleum products is 4 million metric tons with the single existing refinery having a capacity of only 2 million metric tons per year. Fawzy said there did IndianOil seek things such as the demand for extending appropriate fiscal incentives from the Sri Lankan government for setting up the refinery that needed to be looked into. Lanka IOC PLC is not only providing energy security and supply stability for Sri Lanka, but also upgrading the overall standards of service, particularly in the retail sector, an IndianOil official said. Lanka IOC is making phased investments to the tune of about Rs 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 and subsequently, it took over 59 dealer-owned franchisee retail outlets.