SL to buy crude oil from Cyprus firm under unsolicited deal for Sapugaskanda refinery

The Cabinet nod has been given to procure 450,000 barrels of crude oil for Sapugaskanda oil refinery under a 180-day credit line from Cyprus-based Terra Nevis Group. 
Energy Minister Udaya Gammanpila on Monday sought Cabinet approval for the unsolicited proposal submitted by Terra Nevis Group to secure the crude oil requirement for the refinery. 

“The proposal made to supply crude oil under the 180-day loan scheme has been evaluated by the Cabinet-appointed Special Standing Procurement Committee and it is recommended to supply a 450,000 barrel shipment basically,” the Government Information Department stated. Accordingly, the government expects to receive crude oil for the Sapugaskanda oil refinery by July 2022.
Sapugaskanda oil refinery has been closed on and off owing to difficulties in purchasing crude oil as a result of Sri Lanka’s foreign exchange crisis since late last year. Prior to the closures, the refinery supplied 14 percent of petrol and 29 percent of diesel requirement of the country.