Iranian Deputy Minister here to finalise Sapugaskanda project

S. Jamaldeen in TEHRAN

Iran's Deputy Minister of Petroleum Mohammed Reza Nematzadeh, who is also the President of the National Iranian Oil Refining and Distribution Company (NIORDC) will arrive in Colombo tomorrow to finalise with the Sri Lankan authorities the Engineering, Procurement and Construction (EPC) contract of the billion dollar Iranian funded improvement and expansion of project, the Ceylon Petroleum Corporation owned refinery at Sapugaskanda constructed in 1969.

The Sapugaskanda Refinery quality enhancement and expansion project, estimated to cost nearly US$ 1.1 billion is one of Iran's top project aid to Sri Lanka

expected to make Sri Lanka self-sufficient in refining all its requirement of Oil within the country in addition to meeting over 75 per cent of the island's requirements of liquefied Petroleum Gas (LPG), Bitumen, Jet Oil, Kerosene and Fuel oil, all bi-products of petroleum refinery.

The refinery produces only 10 per cent of the island's requirements of these products.

Sri Lanka's Ambassador to Iran M.M. Zuhair said that Nematzadeh is one of those who had worked hard to facilitate this project for Sri Lanka, preceding the visit President Mahinda Rajapaksa to Iran in November last year and since then by following up on this project at every stage on the direction of the Iranian President Dr. Mahmoud Ahmadinejad, who visited Sri Lanka, in May.

Another important project which Iran is funding is the US$ 450 million Uma Oya hydro power and irrigation project, the Ambassador pointed out.

The Deputy Minister of Iran is scheduled to call on President Rajapaksa and will have business discussions on the EPC contract with Petroleum and Petroleum Resources Development Minister A.H.M. Fowzie.