CPC refuses unloading of contaminated petrol

Korean firm to take back stock:

Chaminda PERERA

The Petroleum Industries Ministry yesterday said the Ceylon Petroleum Corporation (CPC) will not pay for the import of 20,000 MT of Petrol which was found contaminated before the stock was pumped to the storage terminal from the vessel which is docked at the Colombo harbour. This petroleum products stock were imported from a company in Korea.

Ministry Secretary Titus Jayawardena yesterday told the Daily News that the ship MT Helas Endurance carrying 20,000 mts of diesel and petrol reached the Colombo harbour in May and the samples of these stocks were sent to the CPC's main laboratory at Kolonnawa. According to Jayawardena, the samples are checked before the stocks are pumped out of the vessel.

The CPC in its laboratory report has said that the diesel stock is of high quality and the petrol stock has been contaminated.

Jayawardena said the Ministry authorities obtained an order from the Colombo Commercial High Court upon receipt of this report to preclude the CPC from paying US$ 14,177,157.75 to the particular company. Jayawardena said the CPC inspectors have confirmed that this petroleum products stock in conformity with tender specification before they were pumped to the ship in Korea.

The CPC and the Ministry officials have found that rain water has leaked into the petrol stock while it was being transported to Colombo and confirmed that the particular ship should bear the full responsibility for this lapse.

Jayawardena said the officials have obtained a Court Order to arrest the ship on the advice of the Attorney General.

He said the Korean company came to an amicable settlement with the CPC. The company has promised to the Corporation and the Ministry that they would take back this contaminated Petrol stock . "The Korean company came to an agreement to bear 50 percent of the Letter of Credit charges and it has also given an indemnity that the ship owners will not sue the CPC under any circumstances in respect of this transaction.," he added

The Ministry Secretary said the CPC purchased 15,000 MTs of petrol from the Indian Oil Company to avert a possible petrol shortage due to this mishap.