Govt. decides to buy crude oil under long-term contract

The Cabinet has decided to purchase crude oil under a long-term contract to ensure the regular crude supplies to the Sapugaskanda oil refinery.

Accordingly, the Cabinet on Tuesday decided to award a long-term contract for seven million Murban crude oil barrels to Swiss Singapore Overseas Enterprises Pte. Ltd.

The proposal, submitted by Petroleum Resource Development Minister Arjuna Ranatunga, was recommended for approval by the Cabinet-Appointed Standing Procurement Committee.

The cost of a barrel of crude oil will be US $ 1.69 premium value.

Further, Ranatunga’s proposal to enter into three long-term contracts with respective suppliers to purchase 1.3 million barrels of petrol, 2.1 million barrels of aviation fuel and 4.7 million barrels of diesel, for the country’s requirements for the coming eight months, was also approved by the Cabinet.