Indian Oil Corporation (IOC) is planning to set up an oil refinery in Sri Lanka, with an investment worth $3.6 billion.
A senior official told the Business Standard that the government will supply the company with the land.
“We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said the official.
Currently Sri Lanka’s ony refinery has an output of two mtpa (million tonnes per annum) and is specialised in refining Iranian crude. If western countries tighten existing sanctions on Iran, the existing refinery may become obsolete.
The new refinery will have an output of 5-9 mtpa, but the IOC hasn’t decided yet which type pf crude will be refined.
“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,”
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