Sri Lanka And India To Jointly Develop Oil Storage Facility In Trincomalee

Sri Lanka And India To Jointly Develop Oil Storage Facility In Trincomalee
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India and Sri Lanka have in principle agreed to jointly operate the oil tank farm in Trincomalee.

The Indian government has decided to hand 10 oil tanks under its custody, which are situated at the Trincomalee Harbor to the government.

Speaking to Media Minister of Petroleum Resource development Chandima Weerakkody said “At present Indian Oil Corporation subsidiary Lanka IOC, engaged in bunkering operations, runs 15 out of the 99 storage tanks in the lower oil tank farm in Trincomalee. The proposed joint venture pertains to the remaining 84 tanks in the upper farm, but Sri Lanka would retain 10 of those for use by the Ceylon Petroleum Corporation”.

India has been engaging with Sri Lanka since 2003, almost 15 years after the 1987 Indo-Sri Lanka Accord granted first preference to India in the running of the oil storage facility. As per the 2003 agreement signed by the neighbours, India was to upgrade and commission the 99 tanks in the farm on a 35-year lease. However, the project did not take off fully as planned, as the two sides could not come to an understanding on operational aspects.

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