India, Sri Lanka sign strategic agreement to redevelop Trincomalee oil tank complex

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India and Sri Lanka on Thursday signed a formal agreement to collaboratively redevelop a major World War II oil tank farm in Sri Lanka’s port city of Trincomalee. The deal signed on January 6 will develop the important Trincomalee oil reservoir complex, also known as the Trinco Oil Reservoir Farms, citing Sri Lankan Energy Minister Udaya Gammanpila.

Gammanpila further stated that the Sri Lankan government’s Secretary of the Treasury, the Commissioner General of Lands, Ceylon Petroleum Corporation (CPC), local operators of the Indian Oil Company (LIOC) and the recently established Trinco Petroleum Terminal Ltd, were among the signatories. .

“A new step in the India-SriLanka economic and energy partnership”

Meanwhile, the Indian High Commission in Colombo took to Twitter to brief about the deal and hailed it as “a new milestone in the India-Sri Lanka economic and energy partnership. “.

After speaking with Sri Lankan Foreign Minister GL Peiris on Thursday, Foreign Minister S Jaishankar said he sent New Year’s greetings to the Sri Lankan leader. Calling Sri Lanka a reliable friend, EAM said India will support Sri Lanka in these difficult times.

Jaishankar also said that trade, as well as business, has grown and strengthened between India and Sri Lanka. He added that there is bilateral collaboration in the fields of development, education, culture as well as defense. According to the MEA, the two countries are widely aware of important international concerns, ANI reported.

61 petroleum reservoirs will be developed by Trinco Petroleum Terminal Pvt. Ltd.

The Sri Lankan government announced earlier this week that the two countries had reached an agreement to launch a cooperative development project after evaluating the three existing agreements with the Indian government on the Trinco oil park.

Cabinet has accepted a proposal to allocate 24 and 14 oil reservoirs of the Trincomalee reservoir complex to CPC and local operators of the Indian Oil Company (LIOC) respectively, while the 61 residual oil reservoirs will be developed by Trinco. Petroleum Terminal Pvt. Ltd, CPC holding 51% of the shares while LIOC has 49%. The joint venture would be for a 50-year lease, according to Minister Udaya Gammanpila’s Joint Cabinet spokesperson. In addition, for decades, the WWII oil storage unit in the strategically advantageous port area of ​​Trincomalee, with a capacity of over 8 million barrels of oil, has been a major link in economic relations. bilateral, reported PTI.

(Image: Twitter / @IndiainSL)

(With PTI entries)

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