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India’s Aditya Birla group owned Swiss Singapore Overseas gets second Crude Oil deal from Sri Lanka

March, 8, 2019

Sri Lanka’s Cabinet Office released latest Cabinet announcements said that Swiss Singapore Overseas Enterprises Pte. Ltd., a commodity trader, has won a contract to supply Murban crude oil to Sri Lanka’s state-run oil refinery - Sapugaskanda Oil Refinery, via a proposal for the eight-month contract by Minister of Highways & Road Development and Petroleum Resources Development Kabir Hashim that was approved by the Cabinet of ministers this week.

 

However this time the Cabinet announcement released in Sri Lanka’s Sinhala language didn’t reveal the amount of crude and price.

 

In late April 2018, that time Cabinet Announcements said that Sri Lanka’s government had entered into a long term contract with M/s Swiss Singapore Overseas Enterprise Pte Ltd to buy Murban Crude Oil to the tune of 7 million Barrels for the 8 months effective from 1st April 2018 to requirement of refining at Sapugaskanda Oil Refinery owned by Ceylon Petroleum Corporation.

That time the proposal was submitted by Arjuna Ranatunga – then Minister of Petroleum Resources Development to the Cabinet Ministers and was approved by the Standing Procurement Committee appointed by the Cabinet of Ministers.

In April 2018, according to the deal as per the approved proposal Sri Lanka was to purchase 7 million Barrels of Murban Crude for 8 months to a total value of over US $ 413 million; from Abu Dhabi oil fields of United Arab Emirates at a US $ 1.69 per Barrel above the spot price; which was at US $ 57.39 per barrel from Swiss Singapore Overseas Enterprise Pte Ltd – a Singapore based subsidiary of India’s US $43 billion Aditya Birla Group, a leading bulk commodity trading solutions provider across the globe.

As at 7th March 2019 Murban Crude was traded at US $ 66.94 per barrel from Abu Dhabi oil fields of United Arab Emirates.

- Reporting by Devendra Francis