Chevron discusses blending plant lease extension

The land lease agreement between Chevron Lubricants Lanka Plc and Ceylon Petroleum Terminal Storage Ltd (CPSTL) will expire on July 13, 2009. The initial lease for the land executed during the privatisation processes was for a period of 10 years from July 4, 1994 and subsequently extended for a further period of 5 years.

The company is having discussions with the Ministry of Petroleum for an extension of the lease. Based on the response from the Ministry, which is expected within the next two months, the company would be making an announcement to the shareholders on the go forward plan in respect of supply chain strategy for the business.

The plant and equipment are owned by the company, and the lease relates to the land only, Managing Director/Chief Executive Officer Kishu Gomes said.