Sri Lanka, India to develop Trinco Oil Tank Farm

Sri Lanka has agreed to implement a joint project with India to redevelop the strategic World War II-era oil tank farm in the eastern port district of Trincomalee, the island nation’s government announced. The Lankan government said that after reviewing the three existing agreements with the Indian government regarding the strategic Trincomalee Oil Tank Complex, commonly known as the Trinco Oil Tank Farm, the two sides have reached an agreement to implement a joint development project.
The Cabinet has approved the proposal to allocate 24 and 14 oil tanks of Trincomalee Oil Tank Complex to Ceylon Petroleum Corporation (CPC) and the local operators of the Indian Oil Company (LIOC) respectively while the remaining 61 oil tanks are to be developed under Trinco Petroleum Terminal Pvt. Ltd, with shares of CPC (51%) & LIOC (49%). Joint Cabinet Spokesperson (Minister) Udaya Gammanpila said this joint venture will be for a lease period of 50 years.
The new agreement will be an extension of the 2002 agreement with the local operators of the Indian Oil Company, LIOC, the Daily Mirror newspaper reported. Sri Lanka in 2002 entered the original deal with India on the island’s most strategic oil storage complex, which was used as a supply base during World War II. India at all times had shown a strategic interest in the Trincomalee tank farm which the British rulers had built to refuel Allied warships and aircraft.
Previous articleKEC International wins Rs 1,025-crore new orders
Next articleSaudi PIF plans a green hydrogen project