Sapugaskanda to open again, soon

COLOMBO (News 1st) - Sri Lanka's Ministry of Power and Energy says that Sapugaskanda Oil Refinery will re-open for operations soon, and a senior official said that necessary instructions have been given to secure a crude oil shipment anchored in the seas off Colombo.

An oil tanker bearing the name Vernadsky Prospect carrying a consignment of Espo-type crude oil had set sail from Russia on the 1st of September. 

According to international maritime data, the vessel reached Colombo on the 20th of September. 

Although 50 days have passed since the vessel sailed into Sri Lankan waters, unloading crude oil from the tanker is yet to commence. 

"We do not have sufficient forex to unload crude oil from the 3rd vessel we ordered. We have deposited the amount in Rupee value. As a result, we made a policy decision to shut down the refinery," elaborated Minister Kanchana Wijesekera on the 7th of October.

Following this statement, the Sapugaskanda Oil Refinery was shut down on the 7th of October. 

It has now been over a month since the refinery was shut down and 50 days since the oil tanker anchored in Sri Lankan waters. 

Based on the information provided by trade unions, the state is led to incurring demurrage costs of 150,000 USD per day. 

The Ministry of Power and Energy has instructed the Ceylon Petroleum Corporation (CPC) to negotiate with the company that imported the fuel.