The Ceylon Petroleum Corporation (CPC) has called for proposals from consultancy firms to carry out a comprehensive business valuation of its Sapugaskanda oil refinery, ahead of tenders for the long-delayed expansion of the 60-year-old facility.
The deadline for submissions of bids is June 15, 2026.
The country’s only refinery was originally designed to process 38,000 barrels per stream day (BPSD), but is currently operating at around 50,000 BPSD. It produces a wide range of petroleum products, including gasoline, diesel, kerosene, Jet A-1, LPG, chemical naphtha, furnace oil, and bitumen.
“In response to increasing demand, evolving environmental standards, and ageing infrastructure, the CPC is exploring modernisation and expansion of the Sapugaskanda Oil Refinery to approximately 100,000 BPSD with investment and partnership decisions, as well as long-term planning,” the Request for Proposals (RFP) states.
“To support these strategic initiatives, the CPC intends to undertake a comprehensive and independent business valuation of the refinery and its operations, covering physical assets, operational capabilities, financial performance, intangible assets, etc., to provide a reliable and transparent assessment of the refinery’s overall business value,” it further notes.
Meanwhile, CPC Managing Director Mayura Neththikumarage said that four CPC-owned tanks in the Upper Tank Farm in China Bay, Trincomalee, are currently under repair. The CPC holds a total of 24 steel storage tanks in the facility, which were constructed by the British during the 1920–1930 period using 25–10 mm shell plate-to-plate riveting technology with fusion welding.
The oil tank farm is operated under a 50-year joint venture agreement signed in 2022 between Lanka IOC, a subsidiary of Indian Oil Corporation, and the CPC. Of the 99 tanks in the facility, Lanka IOC holds 14, the CPC owns 24, and 61 are operated by Trinco Petroleum Terminal (Pvt) Ltd, in which CPC holds a 51 percent stake and Lanka IOC 49 percent.
Each tank has a capacity of 12,500 cubic metres, with an approximate diameter and height of 35.3 x 16 metres. As the tanks have remained unused for a prolonged period, comprehensive repair work is required. This includes, but is not limited to, bottom plate repairs, rivet welding, lap joint welding, blasting, and painting, according to the bid document. The construction period is 180 days.
Separately, the CPC has received multiple bids for its international tender to construct a new Rs. 12.78 billion pipeline from the Colombo Port to Kolonnawa, the Managing Director said. In addition, ongoing projects include the construction of three storage tanks in Muthurajawela and eight in Kolonnawa, with construction already commenced on six of them.
