Discussions relating to tank instrumentation and technological renovations are presently underway, following the completion of the mechanical renovations of four tanks at the Trincomalee Oil Tank Farm. 

When contacted by The Sunday Morning, Ceylon Petroleum Corporation (CPC) Managing Director Dr. Mayura Neththikumarage stated that projects to import oil from international companies were also in the discussion phase.

“Out of the three parts of the Trincomalee Oil Tank Farm, one is owned by the CPC. For now, we are renovating four out of the 24 tanks under the corporation’s ownership,” he said.

“It is difficult to say when these renovations are expected to be completed as it depends on the agreed-upon conditions based on relevant needs,” he added.

Dr. Neththikumarage added that once the renovation of these four tanks was complete, the CPC would initiate renovations for the remainder.

According to the National Audit Office (NAO) Annual Report for 2023, a quadripartite agreement had been signed on 6 January 2022 between the Government, the CPC, Lanka IOC (LIOC), and Trinco Petroleum Terminal Ltd. (TPTL) in order to take custody of, develop, and use the Trincomalee Oil Tank Farm for the ensuing 50 years. 

The agreement states that TPTL has been authorised to conduct businesses fully agreed between the CPC and LIOC such as storage of petroleum, related products, or other products and export of stored products.

“Accordingly, a strategic plan had been prepared to develop the Trincomalee Oil Tank Farm to conduct such businesses, but due to lack of a secure source for financing the project, the development works had not been conducted as planned. 

“Furthermore, an agreement had not been entered into formally with the CPC, LIOC, and other related parties about the use of common user facilities such as jetties, pipelines, and other affiliated services of the oil tank farm,” the report reads.

Dr. Neththikumarage stated that the implementation of the Memorandum of Understanding (MOU) between the Governments of Sri Lanka, India, and the United Arab Emirates (UAE) for cooperation in the development of Trincomalee as an energy hub was being discussed. 

The MOU was exchanged at the Presidential Secretariat on 5 April.

It was exchanged by Ministry of Energy Secretary Prof. K.T.M. Udayanga Hemapala, Indian Foreign Secretary Vikram Misri, and UAE Ambassador to Sri Lanka Khaled Nasser AlAmeri.