Fresh feasibility for Sapugaskanda

A fresh feasibility study will be conducted on the Sapugaskanda oil refinery expansion and modernization project shortly. The cost of the expansion and modernization project was originally estimated to be US $ 1,500 million and with the completion of the feasibility study the cost has escalated to US $ 2,000 million.

A meeting was held with President Mahinda Rajapaksa and Petroleum Ministry officials yesterday.

The President has directed to bring down the cost to its original position of US $ 1,500 and there will be a fresh feasibility study to match the reduction in the estimated cost.

“We are working on this at present and once we reach the desired cost the project will commence,” Petroleum Ministry Secretary Titus Jayawardena told Daily News Business.

KBC Technologies Company conducted the feasibility study for this project. The Iranian Government is expected to provide aid to commence the Sapugaskanda oil refinery expansion and modernization project.

The existing oil refinery at Sapugaskanda was commissioned in August 1969 to process light crude oil.

SJ