Sri Lanka investment board says Oman Oil keen on refinery project

China Harmony Auto Holding

21/03/2019 10:59

NEW DELHI, March 21 (Reuters) - Sri Lanka's state-run Board
of Investment said on Thursday that Oman's government-controlled
Oman Oil Co has made it clear it is interested in taking a stake
of up to 30 percent in a new oil refinery project on Sri Lanka's
south coast. 
    "We are aware that Oman Oil Company has registered their
firm intention to participate in equity up to 30%, subject to
reaching agreement between the parties," the investment board
said in a statement. 
    The $3.85 billion project would be Sri Lanka's largest ever
foreign direct investment. 
    The board also said another Oman entity, Oman Trading
International, is willing to supply the entire feedstock
requirement of the project, as well as to do the marketing for
the resulting refined oil products, such as gasoline. 
    The main investor in the project - the Singaporean arm of
India's Accord Group - has said as well it is fully confident
the project will be implemented, according to the board. 
    Oman's oil ministry on Wednesday denied that it had agreed
to make an investment in the refinery. That was only a day after
the government in Colombo announced the Arab country's
participation.  urn:newsml:reuters.com:*:nL3N2173JX 
    "No one on this side of the panel is aware of this
investment in Sri Lanka," Salim al-Aufi, undersecretary of
Oman's ministry of oil and gas, told a news conference. 
    "It came as news to me, I don't know who is signing the
cheque for $3.8 billion," he said. 
    An industry source familiar with the discussions told
Reuters on Wednesday that there had been talks concerning the
project that involved Oman but that they were at an early stage.
    Any big deal in Sri Lanka involving Indian investment will
pose a challenge to China, which until recently had been on
track to be the dominant foreign investor on the island. 
    India has become concerned in recent years about China
muscling into Sri Lanka and other countries in a region where
India is the traditional power. 
    China is the biggest buyer of Omani oil, importing about 80
percent of the Middle Eastern nation's overall crude exports in
January, according to an Oman government website. 

 (Reporting by Martin Howell; Editing by Tom Hogue)
 ((Martin.howell@thomsonreuters.com; +91 11 49548102; Reuters
Messaging: martin.howell.thomsonreuters.com@reuters.net))