PetroChina likely to clinch Lanka oil deal

fuelPetroChina, China’s biggest oil and gas producer, is likely to be awarded contracts worth millions of dollars to supply oil products to Sri Lanka after placing the lowest offers out of several companies, trade sources said on Wednesday, according to the Reuters news agency.

Sri Lanka’s state-owned Ceylon Petroleum Corp (Ceypetco) had sought nearly 8.6 million barrels of oil products for delivery over September 2015 to April 2016 through four separate tenders.

PetroChina placed the lowest offer for three of the tenders, the sources said. The results of a fourth tender seeking just gasoline was not immediately clear.

PetroChina placed the lowest offer among two companies for a Ceypetco tender seeking 10ppm sulphur diesel, 500ppm sulphur gasoil and 92-octane gasoline, traders said.

It also placed the lowest offer out of four in a second tender seeking 500ppm sulphur gasoil and 92-octane gasoline.
In a third tender seeking 500ppm sulphur gasoil and jet fuel, which attracted eight offers, PetroChina placed the lowest offer.

The tenders, which closed on July 7, are valid for about 4 to 6 weeks, depending on the tender.

PetroChina first signed a term contract supplying oil products into Sri Lanka in early 2013 as it tries to find new outlets for its excess production, traders said.