Udaya Gammanpila, Minister of Energy has announced the full agreement signed between Sri Lanka and India for the joint development of the Trincomalee Oil Tank Complex which is to be presented to Parliament on the 18th.
Government of Sri Lanka, Ceylon Petroleum Corporation (CPC), Lanka IOC, and Trinco Petroleum Terminal Pvt. Ltd. are the signatory partners.
On January 03, the Cabinet approved a proposal to implement the Trincomalee Oil Tank Complex Development Project with India.
Under the 38-page agreement, 61 tanks in the oil storage complex will be jointly developed by CPC and Lanka IOC as a joint venture. Lanka IOC is a subsidiary of the Indian Oil Corporation, owned by the Ministry of Petroleum and Natural Gas, India.
Trinco Petroleum Terminal Pvt. Ltd. subsidiary was formed for the joint development of these 61 tanks and CPC owns 51% and Lanka IOC owns 49% of the shares issued by the joint venture company.
Meanwhile, 14 oil tanks in the Lower Tank Complex operated by Lanka IOC will be further rented to the Company for its commercial activities.
In addition, 24 tanks will be set aside for the CPC’s business activities as approved by the Cabinet.
