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Sri Lanka’s state petroleum company is testing a crude oil from Algeria to widen supply sources for its refinery which is optimised for Iranian crude that is now subject to American sanctions, officials said.

Petroleum Resources Development Arjuna Ranatunga said the Ceylon Petroleum Corporation was no longer importing Iranian crude oil.

It was looking for alternative crude blends to diversify its sources of supply, he said.

The CPC’s 50,000 barrels per day refinery is old and optimised for refining Iranian crude but has relied on other crude blends in recent years.

The latest under consideration is the Saharan blend from Algeria, said Sanjeewa Wijerathna, managing director of Ceylon Petroleum Storage Terminal Limited, a terminal operator which does bulk petroleum storage and distribution for the CPC.

“The CPC refinery can use only very sweet and very light crude oil but very few crudes meet these specifications,” he said.

The CPC lacks equipment known as a hydro cracker to make petrol and diesel from residual fuel oil after refining which it now sells at below market price.

“In the past seven years we buying Murban crude from Abu Dhabi which gives us very good yield in the refinery,” Wijerathna said.

But Murban crude is costly as it is difficult to buy on a government-to-government basis since Sri Lanka’s volumes are small.

“So we are forced to buy in the world market at a premium,” Wijerathna said. “Another alternate is Saharan blend from Algeria which we are testing to determine the output. Not only is it cheaper but the yield is better.”

Media Unit - Minister Office

 

7

New homes were granted to illegal residents near the pipeline which carry fuel from Colombo port to Ceylon Petroleum Storage Terminal, Kolonnawa. Ceylon Petroleum Storage Terminal taking measures to lay a 12 inch new pipeline. New homes were granted to 20 residents as the first step under the patronage of Minister of Petroleum Resources Development Arjuna Ranatunga and the Parliamentarian Ravi Karunanayaka, today. Minister stated that even there’s a court order to remove them, they have look into this matter with wellness of these families. He also certified that they will give new homes to other residents also.

 

“All of you lived top of the pipeline. You lived on fire, if there was a fire in the pipeline, it will create a disaster to the Colombo. Court has issued an order to remove these people. If this was happened during the previous regime, they will kick out all of you by one night. But our government has not follow that kind of procedure. We have taken steps to grant new homes to you for the wellbeing of your families” Minister added.

 

“This pipe line is old around 70 years. We can’t assume when it will leak and blast. We could not lay a new pipeline from 20 years. Now we can lay the pipe line without causing unfairness to residents” Minister further added. Parliamentarian Ravi Karunanayaka stated that they will grant homes to other 419 residents before end of this year.

Media Unit - Minister Office

 

trinco

“Minister Arjuna Ranatunga stated that it’s not necessary to sell oil tanks which are not in use. He is taking steps to develop the tank complex together with investors. He further stated that he always enter into agreements which are beneficial to the country. Minister Ranatunga stated that Trincomalee tank complex was given to India in 2003 and he’s trying to get few tanks under their control.

 

“Sri Lankan government has entered into an agreement with India to lease the tank complex in 2003. There’s a condition stated that a monetary contract should be signed which was not took place properly. I can’t disclose all details because there’s an ongoing court case. When I took over this ministerial position, tank complex was using by India. 15 tanks were using by India. 18 tanks were deteriorated without usage. Then I decided to present a cabinet paper regarding this matter. Trinco oil tank complex land is owned by Sri Lankan government. Under the cabinet paper, we have requested to enter into a new agreement retaining the land ownership with us, to grant 15 tanks to India and the rest of 85 tanks will be administered by a joint venture together with CPC and Indian Oil Company for a limited period. I also presented a cabinet a paper to acquire 16 tanks out of it. We expect to distribute fuel to vessels in northern east” Ranatunga added.

 

“Several politicians were accused of selling tank terminal. They could not change the agreement when they were in power. A union leader who was accusing, has been sacked for 9 mistakes. He has worked as a union leader during the previous regime. He could change these during the previous regime. I saw that they threatened they will go for a strike. I’m ready for it. I will take immediate actions against public inconvenience. I have increased 30% of salary to the workers of CPC and CPSTL during my tenure. There are some groups who dislike to develop tank complex. Before my tenure, oil transportation done to northern east using bowsers. It is advantageous to owners of bowsers. If we can acquire 16 tanks, it will be advantageous to CPC” Minister added further.

Media Unit - Minister Office

2

Minister of Petroleum Resources Development Arjuna Ranatunga stated that they have commenced Seismic Survey of oil and gas exploration in Mannar basin by BGP pioneer’ vessel. BGP Pioneer’ completed their operations in Lanka basin from JS -05 to JS-06 from 30th March up to now. Minister Arjuna Ranatunga stated that BGP pioneer has reached to Mannar basin today after the completion of data collection in Lanka basin. Collection of 2D seismic data in Mannar basin will take Three weeks.

 

Petroleum Resources Development Secretary (PRDS) identified 3 basins which are Mannar, Kaveri and Lanka. These basins are divided as follows. Mannar basin from M-01 to M -10, Kaveri basin from C-1 to C5, Lanka basin from JS -01 to JS-06.

 

“Sri Lankan government has signed an agreement to collect data of oil gas exploration with Total in 2016. There was a difficulty to collect data because of unavailability of a Service Company. We expeditious the data collection by signing a multiservice agreement with SCHLUMBERGER. As a result of that we could be able to collect data in Lanka basin and Kavery basin. We collected data in Kavery basin after 35 years. This project will be funded by SCHLUMBERGER. Sri Lankan government will retain the ownership of data. We will be able to make a profit and cover the operation cost by selling data. We are planning to initiate with exploration after the data acquisition and data analysis” Minister Ranatunga added further.

Director General of Petroleum resources Development Secretariat Vajira Dassanayake was present at the media brief.

 

Media Unit - Minister Office

 

MoscowDirector General of the Petroleum Resources Development Secretariat Vajira Dassanayake met with Ambassador of Sri Lanka to the Russian Federation Dr. Dayan Jayatilleka at the Embassy Premises on 05 October 2018, and discussed matters relating to the Hydrocarbon exploration activities in Sri Lanka.

Mr. Dassanayake briefed the Ambassador on the ongoing seismic survey carried out in Sri Lanka’s North Eastern Exploration Blocks JS5 and JS6. Further, the Director General emphasized the necessity to lay hold of raw seismic data obtained during the period from 1970 – 1975 by the former Soviet Union. The data in reference was obtained covering the Cauvery basin in Sri Lanka’s initial efforts to explore petroleum resources.

Ambassador Jayatilleka assured of the Mission’s fullest cooperation to assist the Government of Sri Lanka to obtain the data by liaising with relevant state institutions in the Russian Federation. Considering the potential positive impact, the discovery of oil and gas would have in Sri Lanka, the Ambassador assured of the Mission’s unconditional support for Sri Lanka’s hydrocarbon exploration efforts. The Ambassador further commended the commencement of the exploration efforts initiated under the patronage of Hon. Arjuna Ranatunga, Minister of Petroleum Resources Development.

Director General of the Petroleum Resources Development visited Moscow as a member of the Sri Lankan delegation that participated in the Russian Energy Week International Forum – 2018 which was held from 3 to 6 October in the Central Exhibition Hall ‘Manege’ in Moscow.

 

Media Unit - Minister Office

 

Current Local Fuel Prices

 

 

 

 

 

 

Petrol 92 Octane : Rs. 145.00 Per Litre

Petrol 95 Octane : Rs. 169.00 Per Litre

Auto Diesel : Rs. 123.00 Per Litre

Lanka Super Diesel : Rs. 141.00 Per Litre

Kerosene : Rs. 70.00 Per Litre

Lanka Industrial Kerosene : Rs. 110.00 Per Litre

Furnace Oil 800Sec : Rs 92.00 Per Litre

Furnace Oil 1500Sec : Rs 92.00 Per Litre

Furnace Oil 3500Sec : 

Source : Ceylon Petroleum Corporation

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