No oil; Sapugaskanda runs dry!
The Sapugaskanda oil refinery was shut down on Friday for the first time in its 42 year
history after the Ceylon Petroleum Corporation ran dry of Iranian crude oil as a result of the
UN sanctions on Iran. Petroleum Minister Susil Premajayantha told LAKBIMAnEWS that the
government has decided to stop all oil purchases from Iran. The Sapugaskanda refinery can
only process Iranian crude oil.
SL’s vessels turn back
No more oil from Iran – Premajayantha
By Sulochana Ramiah Mohan
Tankers sent by Sri Lanka to Iran to transport oil from Tehran at the request of the Iranian government have not been allowed to enter the territory of Iran by American vessels that have set in place a blockade, Minister of Petroleum Susil Premajayantha told LAKBIAMEnEWS.
He said Sri Lanka will not have dealings with Iran till the US State Department gives the green signal to resume the purchase of oil.
Minister Premajayantha said, “Two teams were sent to Iran last month to finalize oil purchase but the exercise was fruitless. We then asked Iran to send their ship with the necessary crude which they are unable to do.”
He added, “The real issue is, Iran is not in a position to export a drop of oil. They also told us to send one of our small ships to Iran a month ago and we did but the ship was not issued reinsurance. None of the insurance companies is coming forward to cover insurance. Also, our ship was not allowed to enter their territorial waters, so we directed the ship to bring Saudi light crude.”
The minister also said that banks are not willing to open LCs. “So without a LC how can we order cargo?” he asked.
“We are trying our best to work out a plan through our diplomatic sources to get the supply from Iran. Till the US gives us a green signal, we won’t be able to have any transactions with Iran, that is the reality,” Premajayantha averred.
The Sapugaskanda oil refinery was shut down on Friday for the first time in its 42 year
history after the Ceylon Petroleum Corporation ran dry of Iranian crude oil as a result of the
UN sanctions on Iran. Petroleum Minister Susil Premajayantha told LAKBIMAnEWS that the
government has decided to stop all oil purchases from Iran. The Sapugaskanda refinery can
only process Iranian crude oil.
Pic by Malith Gamage
SL’s vessels turn back
No more oil from Iran – Premajayantha
By Sulochana Ramiah MohanTankers sent by Sri Lanka to Iran to transport oil from Tehran at the request of the Iranian government have not been allowed to enter the territory of Iran by American vessels that have set in place a blockade, Minister of Petroleum Susil Premajayantha told LAKBIAMEnEWS.
He said Sri Lanka will not have dealings with Iran till the US State Department gives the green signal to resume the purchase of oil.
Minister Premajayantha said, “Two teams were sent to Iran last month to finalize oil purchase but the exercise was fruitless. We then asked Iran to send their ship with the necessary crude which they are unable to do.”
He added, “The real issue is, Iran is not in a position to export a drop of oil. They also told us to send one of our small ships to Iran a month ago and we did but the ship was not issued reinsurance. None of the insurance companies is coming forward to cover insurance. Also, our ship was not allowed to enter their territorial waters, so we directed the ship to bring Saudi light crude.”
The minister also said that banks are not willing to open LCs. “So without a LC how can we order cargo?” he asked.
“We are trying our best to work out a plan through our diplomatic sources to get the supply from Iran. Till the US gives us a green signal, we won’t be able to have any transactions with Iran, that is the reality,” Premajayantha averred.
