The Lanka Indian Oil Company (LIOC) operated 14 oil tanks at the Trincomalee Oil Tank Farm will be leased out to the same company for another 50 years, Energy Minister Udaya Gammanpila said.
Minister Gammanpila stated this during a press conference held at the Energy Ministry.
The Minister said out of the other 85 tanks, 24 will be operated by the Government of Sri Lanka through the Ceylon Petroleum Corporation (CPC) and the rest will be developed through the proposed Trincomalee Petroleum Terminals Limited (TPTL), a joint venture between the Governments of Sri Lanka and India.
The CPC will retain 51 per cent of shares and the IOC will retain 49 per cent of shares of the TPTL, which will jointly develop 61 tanks.
Minister Gammanpila explained that the TPTL is a regulated company of the CPC and four out of the seven Directors including the Chairman will be appointed by the CPC.
The Trincomalee Oil Tank Farm consists of 99 storage tanks with a capacity of 12,000 kiloliters each. It was built by the British during World War II to serve as a re-fuelling station. It was attacked by the Japanese Forces during World War II, damaging some of the tanks.
However, they fell into disuse after the British ceded power in 1948. The Trinco oil tank farm issue has been a controversial topic in local politics for some time, with various views expressed on how it should be operated.
