COLOMBO: Cash-strapped Sri Lanka has signed a long-term deal with Chinese oil and gas giant Sinopec on important storage, distribution and sale of petroleum products in the nation, President Ranil Wickremesinghe’s office said on Monday.
The deal with Sinopecwas reached months after the two sides commenced their negotiations and Sri Lanka approved a proposal in March to liberalise the fuel retail marketing in the country with more players from China, Australia and the US. The island nation’s fuel retail market was a state monopoly under the Ceylon Petroleum Corporation (CPC) till 2003 when the Indian Oil Company (IOC) was allowed to operate.
“Negotiations have been completed with Sinopec Fuel Oil Lanka Ltd and its parent company in China and Singapore ,” the statement issued by the president’s office said. The cabinet had granted approval to award licenses to Sinopec, United Petroleum Australia and RM Parks of USA in collaboration with Shell Plc to enter the fuel retail market in Sri Lanka. The parties will be granted a license to operate for 20 years to import, store and distribute.
The deal with Sinopecwas reached months after the two sides commenced their negotiations and Sri Lanka approved a proposal in March to liberalise the fuel retail marketing in the country with more players from China, Australia and the US. The island nation’s fuel retail market was a state monopoly under the Ceylon Petroleum Corporation (CPC) till 2003 when the Indian Oil Company (IOC) was allowed to operate.
“Negotiations have been completed with Sinopec Fuel Oil Lanka Ltd and its parent company in China and Singapore ,” the statement issued by the president’s office said. The cabinet had granted approval to award licenses to Sinopec, United Petroleum Australia and RM Parks of USA in collaboration with Shell Plc to enter the fuel retail market in Sri Lanka. The parties will be granted a license to operate for 20 years to import, store and distribute.