• Cabinet-appointed committee yet to be formed to evaluate bids
• TPTL holds 61 tanks under 50-year lease for joint development
• Biz plan prepared but refurbishment on hold until process concludes
• Proposals received will be disclosed only after evaluation: LIOC 

The identification of a suitable private investor for the joint development of the Trincomalee Oil Tank Farm in partnership with Trinco Petroleum Terminal Ltd. (TPTL) remains ongoing, with parties awaiting the constitution of the Cabinet-appointed committee to evaluate the proposals submitted by prospective investors.

Speaking to The Sunday Morning Business, Lanka IOC PLC (LIOC) Managing Director Dipak Das revealed that the process initiated last year to identify a suitable private investor for the joint development of the 61 oil tanks allocated to TPTL had yet to reach a conclusion.

“We are waiting for the committee to be constituted,” he stated.

However, he declined to provide any specifics on the number of proposals received and the identities of such bidders, claiming that all such information would be made public in due course. 

Das further revealed that TPTL had not commenced the refurbishment of the oil tanks allocated to it and intended to wait until the conclusion of the aforesaid tender process.

He added that while they had formulated a business plan for the oil tank redevelopment project under TPTL, the precise scope of the proposed venture would be determined by a committee appointed by the Cabinet of Ministers.

TPTL is a joint venture between LIOC and the Ceylon Petroleum Corporation (CPC). 

The Trincomalee Oil Tank Complex Development Project was approved by the Cabinet of Ministers on 4 January 2022. Accordingly, it was decided that 24 of the 99 tanks would be given to the CPC, 14 tanks to LIOC, and 61 tanks to TPTL – the latter on a 50-year lease, with the CPC having the majority stake in the subsidiary. 

Consequently, LIOC and the CPC entered into an agreement on 6 January 2022 for the joint development of the 61 tanks held by Trinco Petroleum Terminal as a joint venture. The CPC holds a 51% stake in the company while LIOC holds a 49% stake.