Cabinet nod to award long term contracts to procure petrol and diesel

The Cabinet of Ministers this week approved the proposals to award contracts to U.A.E-based ES Energy DMCC and Singapore-based Swiss Singapore Overseas Enterprises Pte. Ltd. to procure petrol (92Unl) and diesel for the next eight months.

The proposal was based on recommendations of the Standing Committee on Procurement appointment by the Cabinet of Ministers. 

Accordingly, the government would procure 1.8 million barrels of petrol from ES Energy DMCC from November 1 this year until June 30 next year as per the long-term contract. 

Similarly, Swiss Singapore Overseas Enterprises Pte.Ltd. secured the contract to supply 1.68 million barrels of diesel that contain maximum sulfur of 0.05 percent during the same period. 

Up to September this year, Sri Lanka imported US$ 1.3 billion worth of refined petroleum while crude oil imports expenditure amounted to US$ 451.2 million during the same period. 

The government plans to expand the capacity of the Sapugaskanda oil refinery from processing 40,000 barrels of crude oil to 100,000 to meet at least half of the country’s demand for refined petroleum products.

The Cabinet of Ministers last week approved a proposal submitted by the Ministry of Power and Energy to conduct a feasibility study on expanding the oil refinery.