Development of Trincomalee oil tank farm

Why in news?

• Recently, Sri Lanka’s Energy Minister Udaya Gammanpila announced that the Indian Oil Subsidiary Lanka IOC would be given 49% stake in the joint development of the Trincomalee Oil Tank farm, with Ceylon Petroleum Corporation keeping 51%.

About the development

• The CPC has formed a special purpose company, Trinco Petroleum Terminals Ltd, and it is expected to get Cabinet approval this week.
• While the two sides will jointly refurbish 61 of the 99 tanks at the farm, 24 will be developed by CPC and 14 by LIOC. This arrangement is for the next 50 years.
• The next step is three formal agreements: two between CPC and LIOC — one for the joint development and the other for the 24 tanks to CPC — and the third between the Sri Lankan government and LIOC.