UN embargo fuelled CPC financial crisis
The UN embargo on Iran, fuelled the financial crisis of the Ceylon
Petroleum Corporation according to Petroleum Minister, Anura Yapa.The
Minister said that production at the Sapugaskanda refinery which
provided 20 percent of the local petroleum demand was interrupted due to
a shortage of crude oil. Denying allegations of the Opposition, the
Minister said that Sri Lanka has not imported crude oil from Iran since
The Sapugaskanda refinery which has a daily production capacity of
50,000 barrels was scheduled to re-start last Friday.The refinery was
built and fine tuned to operate on Iranian light crude and Sri Lanka was
struggling to find a suitable alternative after UN sanctions prevented
Sri Lanka from importing light crude oil from Iran.
Now the CPC buys Omani light crude, but yield is low compared to Iran
crude and is trying out Nigerian and other crudes. After sanctions were
imposed on Iran the refinery was closed on several occasions and this
has seriously impacted on the loss making CPC.