Oman Eyes $3.85bn Sri Lanka Refinery Project

Oman is reportedly set to invest in a $3.85bn refinery project in Sri Lanka. Details are shaky, but the move would further push Oman up the value chain – just as the sultanate is consolidating its state-owned companies – if it can find the cash.

Oman Oil Minister Muhammad al-Rumhy was in Sri Lanka this week to lay the ‘foundation stone’ for a new oil refinery at Hambantota on Sri Lanka’s southern coast, lending credence to recent reports tying Muscat to the project.

“This is not a project just for three years. This is a life-long project,” Mr Rumhy said at the ceremony. “We will work very hard to deliver this project to the people of Sri Lanka.”

Yet despite Mr Rumhy’s presence at the construction site, and his pledge to ‘deliver this project’, the status of Oman’s planned involvement in the 200,000 b/d project is far from clear. Just days before at the ministry’s annual media briefing in Muscat, Ministry of Oil and Gas (MOG) undersecretary Salim al-Aufi threw cold water on Oman’s reported involvement, replying to reports that state firm Oman Oil Company (OOC) was to take a 30% stake in the project that “I don’t know who is signing the check for $3.8bn.” (CONTINUED - 898 WORDS)

DATA INSIDE THIS ARTICLE

chart Oman Crude Exports (Mn B/D) To China Hit Record Highs In Q4 2018