- RFP remains under review ahead of finalisation
The professional valuation of the Sapugaskanda Oil Refinery’s assets is expected to be completed by the end of October, as the Ceylon Petroleum Corporation (CPC) moves ahead with preparations linked to the future development of the country’s only oil refinery.
CPC Managing Director Dr. Mayura Neththikumarage told The Sunday Morning that professional services firm EY had been engaged to carry out a comprehensive valuation of the refinery’s assets, including its properties and machinery.
The exercise is expected to take approximately two months, placing its completion towards the end of October. “We have started a professional valuation. EY is doing it, and it will take around two months,” Dr. Neththikumarage said.
Asked whether the process was therefore expected to be concluded by the end of October, he confirmed the timeline.
The valuation comes as the Request for Proposal (RFP) relating to the Sapugaskanda Refinery is also being prepared, with Dr. Neththikumarage saying that the document is nearing completion but remains subject to further scrutiny.
According to the CPC Managing Director, the RFP has been going through several rounds of review to ensure that all requirements identified by the relevant project committee are adequately incorporated before the document is finalised.
Certain provisions are also being reviewed and rephrased as part of the process. “The RFP is almost complete,” he said, noting, however, that several rounds of review were necessary to ensure that all relevant aspects were properly covered.
The completion of the valuation and finalisation of the RFP are expected to be important steps in determining the way forward for the ageing refinery, which has long been identified as requiring substantial modernisation and capacity improvements.
The Sapugaskanda Refinery, commissioned in 1969, remains Sri Lanka’s only operational crude oil refinery and has played a central role in the country’s petroleum supply infrastructure for more than five decades.
Its relatively limited refining capacity and ageing infrastructure have, however, resulted in successive governments considering proposals for its modernisation and expansion.
The refinery has a processing capacity of approximately 50,000 barrels of crude oil per day. Sri Lanka consequently remains heavily dependent on imports of refined petroleum products to meet domestic demand, alongside crude oil imported for processing at Sapugaskanda.
Plans to upgrade and expand the refinery have been discussed over a number of years, with the Government seeking options to improve refining efficiency, increase capacity, and reduce the country’s reliance on imported finished petroleum products.
The latest valuation is expected to establish a professional assessment of the existing asset base, covering property, plant, machinery, and other assets associated with the refinery.
Such an assessment would provide an updated basis for decisions relating to future investment and development of the facility as the Government proceeds with the RFP process.