Govt to buy Shell Gas

* Cabinet OK granted for negotiations

* Privatised State assets to be re-vested

Rasika SOMARATHNA

The Government intends to purchase majority stakes in the Shell Gas Lanka Ltd. The multinational company, Shell bought the State owned LP Gas monopoly concern few years back.

The decision followed representations made by Shell Gas to the Government that they intend to exit from LP Gas business in Sri Lanka due to restructuring of its business worldwide, Mass Media and Communications Minister Keheliya Rambukwella said. He said Cabinet approval was granted to inform Shell International Petroleum Company Ltd. that the Government is willing to commence negotiations to acquire Shell Company’s 51 percent interest in Shell Gas Lanka Ltd.

Approval was also granted to appoint Bank of Ceylon as the financial advisor in this exercise and to set up a negotiating committee comprising five Ministry Secretaries, Minister Rambukwella told a media briefing to announce the Cabinet decisions. Minister Rambukwella announcing the decision emphasized that the Government intends to use every such opportunity to buy back State assets that were privatized previously.

He said in President Mahinda Rajapaksa’s manifesto, Mahinda Chintana it is clearly stated that key State institutions will not be privatized and added that the Government would strictly adhere to this policy.

Shell Gas Lanka is the dominant supplier of Liquefied Petroleum Gas (LPG) in the country. According to reports, the multinational is engaged in an ownership options review and is on the look out for possible buyers for most of its LPG units in Asia, Europe and Latin America.