Sri Lankan officials say Oman minister has arrived for refinery project launch

China Merchants Port Holdings

23/03/2019 15:08

COLOMBO, March 23 (Reuters) - Oman's oil minister arrived in
Sri Lanka on Saturday to participate in the launching of a $3.85
billion oil refinery project, government officials in Colombo
said, three days after Oman said it had not yet agreed to invest
in the facility.
    The arrival of Mohammed bin Hamad Al Rumhy could mean that
the project - Sri Lanka's biggest foreign direct investment deal
- is back on track. However, there is no immediate sign of a
formal deal involving Omani investment.
    Sri Lankan officials said on Tuesday Oman's oil ministry
planned to take a 30 percent stake in the project.
    A Singapore company controlled by India's Accord Group would
invest the other 70 percent. The storage tanks part of the
facility would be owned fully by the Accord entity.
    But on Wednesday, Oman denied knowing about its part in the
plan to build the refinery on Sri Lanka's southern coast.
    "He [Oman's oil minister] is here to take part in the ground
breaking ceremony for the oil tanks of the refinery," a senior
official at Sri Lanka's strategic development ministry told
Reuters. 
    Officials from Oman's oil ministry were not immediately
available for comment.
    The refinery is being constructed near a $1.4 billion port
at Hambantota that is controlled by China Merchants Port
Holdings  0144.HK .  urn:newsml:reuters.com:*:nL3N2173JX 
    India and China have been vying for political influence in
Sri Lanka in recent years, with investment a key part of the
battleground.
    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 Oman government data.
    Another government official confirmed the minister's arrival
and his participation at the ceremony in Hambantota on Sunday.
    There are also plans in place by China Harbour Engineering
Corp to build an investment zone alongside the port. 

 (Reporting by Shihar Aneez
Editing by Martin Howell and Clelia Oziel)
 ((shihar.aneez@thomsonreuters.com; +94-11-232-5540; Reuters
Messaging: shihar.aneez.thomsonreuters.com@reuters.net
twitter:@shiharaneez))