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Govt. shortlists two firms to develop oil refinery in Hambantota

Wednesday, 5 July 2023 00:38 –      – 85

The Government has shortlisted two companies to invest a minimum of $ 4 billion to build a new oil refinery in Hambantota to meet the energy needs of the country.

“We identified the need for a new oil refinery to meet the energy requirements, and after a thorough evaluation process, two companies have been shortlisted from a total of seven bids received. However, following an initial screening conducted by the committee, only Singapore›s Vitol and China›s Sinopec have been selected to proceed to the next stage,” Power and Energy Minister Kanchana Wijesekera told journalists at the Presidential Media Centre titled ‘Collective path to a stable country’.

As per him, the call for Expressions of Interest (EOIs) to invest in the refinery located in the Hambantota Industrial Zone at the Port was initiated two months ago, attracting interest from seven potential investors.

“Only, these two companies stood out as they demonstrated both the financial resources, with a minimum investment capacity of $4 billion, and the technical expertise required to successfully develop the refinery,” he added.

The Minister confirmed that Requests for Proposals (RFPs) were sent to the shortlisted companies last week, and they are expected to provide their detailed responses within the next 45 days.

The selection of Singapore›s Vitol and China›s Sinopec for further consideration underscores their proven track records and capabilities in the oil and gas industry.

Minister Wijesekera said both companies possess the necessary expertise to undertake such a substantial project, and their participation signifies the international interest and confidence in Sri Lanka›s energy sector.

“The Government aims to finalise an agreement with one of the companies by the end of this year,” Wijesekera said.

This initiative is poised to play a key role in driving the country›s energy independence and advancing its self-sufficiency to ensure a stable energy supply. (CdeS)

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