Indian oil company to set up refinery in Sri Lanka

[Skyline]

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July 30, Colombo: Indian Oil Corporation (IOC) will set up a refinery in Sri Lanka with an investment up to US$ 3.6 billion, a report in Business Standard said.

IOC, which already has a venture in Sri Lanka through its subsidiary Lanka IOC, operates 10 refineries in India and the one in Sri Lanka will be its first refinery outside India. IOC plans to set up the refinery in a joint venture with the Sri Lankan government.

The capacity of the Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum).

A senior IOC official has told the Business Standard that the company has done the analysis and has first-hand information on the kind of refinery they plan to set up in Sri Lanka.

"We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us," the official has said.

According to the official the Sri Lankan government has already agreed to provide land and the new refinery is to be built near the existing Sapugaskanda refinery.

IOC's subsidiary in Sri Lanka, Lanka IOC is the only private oil company in Sri Lanka operating 157 fuel retail outlets.

Sri Lanka's 43-year-old refinery daily produces 50,000 barrels of fuel from Iranian light crude oil. It has a capacity of 2 mtpa whereas the fuel consumption is 4.5 mtpa, requiring 2.5 mtpa of imports.

The Sri Lankan government has launched the "Sapugaskanda oil refinery expansion and modernization project" to expand the production capacity to 100,000 barrels per day.

According to IOC analysis, Sri Lanka's fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.

Setting up the refinery in a joint venture with the Sri Lankan government would allow IOC easy clearances along with the government's commitment, the report said.

"Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense," the official has said.

"Considering Sri Lanka's fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we'll select the type of crude to be processed," the official has said.

Sri Lanka : Indian oil company to set up refinery in Sri Lanka

[Yogi]

Good to see atleast some improvement in relations with lanka atlast

its a win win situation for all lanka will enjoy better refining capacity n will become self reliant n IOC will get greater access in lankan market

[Srinivas]

We don't want Chinese in our neighbouring countries.

[RISING SUN]

IndianOil to set up refinery in Sri Lanka for Rs 20,000 cr
To be second Indian company after Essar to have a refinery abroad
Kalpana Pathak / Mumbai Jul 30, 2012, 00:57 IST
Indian Oil Corporation (IOC) will set up its first refinery outside India with an investment of up to Rs 20,000 crore in Sri Lanka. It will thus become the second Indian company to have a refinery abroad.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.

EXPANDING OVERSEAS

IOC operates 10 refineries in India
The one in Sri Lanka will be its first refinery abroad
Refinery capacity could be 5-9 mtpa
Will spend up to Rs 20,000 crore in setting up the refinery
Plans to set up the refinery in JV with the Sri Lankan government
The government has already agreed to provide land
The new refinery to come up adjacent to an existing refinery in Sri Lanka

IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per annum of Iranian light crude oil.

IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.

“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.

Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.

“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.

Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
IndianOil to set up refinery in Sri Lanka for Rs 20,000 cr

IndianOil to set up refinery in Sri Lanka for Rs 20,000 cr
To be second Indian company after Essar to have a refinery abroad
Kalpana Pathak / Mumbai Jul 30, 2012, 00:57 IST
Indian Oil Corporation (IOC) will set up its first refinery outside India with an investment of up to Rs 20,000 crore in Sri Lanka. It will thus become the second Indian company to have a refinery abroad.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.

EXPANDING OVERSEAS

IOC operates 10 refineries in India
The one in Sri Lanka will be its first refinery abroad
Refinery capacity could be 5-9 mtpa
Will spend up to Rs 20,000 crore in setting up the refinery
Plans to set up the refinery in JV with the Sri Lankan government
The government has already agreed to provide land
The new refinery to come up adjacent to an existing refinery in Sri Lanka

IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per annum of Iranian light crude oil.

IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.

“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.

Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.

“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.

Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
IndianOil to set up refinery in Sri Lanka for Rs 20,000 cr

[RPK]

Sri Lanka denies refinery deal with Indian Oil




Colombo: Sri Lanka has no plans to enter into a deal with Indian Oil Company for building a second refinery, a senior official said on Tuesday.

A statement issued by the Petroleum Industries Ministry said that no negotiations or talks with the IOC or any other foreign party had taken place with regard to constructing a second refinery.

The ministry was responding to Indian media reports that IOC's Lanka entity LIOC was to build a new refinery adjacent to the island's only refinery at Sapugaskanda, a north Colombo suburb.

According to reports, IOC was to invest Rs 20,000 crore in a joint venture with Sri Lanka's state fuel entity Ceylon Petroleum Corporation.

The second refinery was to raise the island's current refining capacity from 2 mtpa to 6.5 mtpa by 2020.

The IOC which set up its Sri Lanka operations in 2003 operates some 150 retail fuel stations enjoying over 43 percent of the market share.

[iajdani]

Oil Refinery is a vital and sensitive infrastructure and Indian should not be allowed to invest in that. Ask Indian to invest in Agri and plantation sector. Agro processing industry is doing great and can be imported back to India. Win win for both the country.

[INDIC]

Oil Refinery is a vital and sensitive infrastructure and Indian should not be allowed to invest in that. Ask Indian to invest in Agri and plantation sector. Agro processing industry is doing great and can be imported back to India. Win win for both the country.

India is not Bangladesh looking for agricultural land for lease in other country. Our companies have great expertise and they get lots of contracts in different countries.

[Skyline]

Sri Lanka denies refinery deal with Indian Oil

hummmmmmmmmm

I heard another bad news for India from a friend, Sri Lanka is going to give railway projects to China. (100% trusted source, will be in media with in next few weeks...)

[INDIC]

hummmmmmmmmm

I heard another bad news for India from a friend, Sri Lanka is going to give railway projects to China. (100% trusted source, will be in media with in next few weeks...)

Which rail projects, I think India already have some projects in the North.

[RPK]

hummmmmmmmmm

I heard another bad news for India from a friend, Sri Lanka is going to give railway projects to China. (100% trusted source, will be in media with in next few weeks...)

I like Lanka to follow Pakistan way

[Skyline]

Which rail projects, I think India already have some projects in the North.

India have 2 railyway projects, latest one will go to China.

I like Lanka to follow Pakistan way

We aren't following anyone, Sri Lanka is Sri Lanka.

[manofwar]

hummmmmmmmmm

I heard another bad news for India from a friend, Sri Lanka is going to give railway projects to China. (100% trusted source, will be in media with in next few weeks...)

And I am going to be the CEO of Apple.....................(100% trusted source, will be in the media within next few weeks)

Any PROOF???

[RPK]

India have 2 railyway projects, latest one will go to China.



We aren't following anyone, Sri Lanka is Sri Lanka.

Yes your country is always based on Imports either from India or china

[Skyline]

Yes your country is always based on Imports either from India or china

yep, up to some extend. Don't want to see polluted air, dust etc so it's better to import goods from other countries than building factories every corner of my green country.

[RPK]

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yep, up to some extend. Don't want to see polluted air, dust etc so it's better to import goods from other countries than building factories every corner of my green country.

good for you ..........So you people always frog in the well