The agreement for the development of the Trincomalee Oil Tank Terminal has been signed.
The relevant agreement was signed by the Secretary to the Treasury, the Commissioner-General of Lands, the Petroleum Corporation and the LIOC.
In a Twitter post, the Minister said that out of the 99 tanks under Indian control, 85 would come under the control of Sri Lanka.
The relevant agreement is due to be presented to Parliament on 18 January and will be published on the official website of the Ceylon Petroleum Corporation next Tuesday, the Ministry of Energy announced.
Cabinet approval was granted to execute the existing Agreement with the Government of India on the Trincomalee Oil Tank Complex as a Joint Development Project by a Company established as Trinco Petroleum Terminal Pvt. Ltd
Accordingly, 24 tanks will be allocated for the business activities of the Ceylon Petroleum Corporation with an investment of US$ 25 million.
All 14 tanks of the Lower Oil Tank Complex currently in use by Lanka IOC will be further allocated for this business. The remaining 61 tanks will be jointly developed by Trinco Petroleum Terminal Pvt. Ltd.
51% of the shares are owned by the Ceylon Petroleum Corporation and 49% by the Lanka IOC.
The Chairman of the Ceylon Petroleum Corporation stated that the initial investment will be around US $ 60 million.