Wednesday, August 24, 2011

LIOC to invest US $ 4 m this year

Sanjeevi JAYASURIYA

Sri Lanka needs to invest more in the petroleum sector development focusing on expansion of infrastructure facilities. Lanka Indian Oil Company will continue its investment drive and looking at investing US $ 4 million during the year, Lanka IOC Managing Director K.R. Suresh Kumar told Daily News Business.
“The country’s petroleum industry needs capacity building and further investments to sustain the growth momentum,” he said.

Lanka IOC continues to invest in the country’s petroleum sector and there will be more investments at the Trincomalee terminal this year.

We are keen on entering the bunkering business at the Hambantota Port once it is ready for business by November.

“We are awaiting a positive response from the Government and have the capability to commence business immediately once the green light is given,” he said.

“The company is in the process of evaluating the Trincomalee facility to upgrade its current status. A detailed engineering evaluation is being done at present and once the report is ready we will quantify the investment necessary,” Kumar said.

The Trincomalee oil tank farm has 99 tanks each with a capacity of 12,259 kilolitres. The company imports petroleum products to the two ports of Colombo and Trincomalee where it also uses its storage facilities.

Lanka IOC will open four more filling stations next month adding to its current network and with these units it will have 156 filling stations islandwide.

The company emphasises its keen interest in becoming a dominant player in the country’s bunkering business and plans to expand its presence in the sector. “The company’s businesses are progressing well at present.

However, we are concerned of the volatility in oil prices.

The diesel price in the domestic market is not attractive as import cost is higher than the market price. Therefore compensation is low,” he said.

source - www.dailynews.lk

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