By Nirmala Kannangara
Ceylon Petroleum Corporation (CPC) has received cabinet approval to sign a deal with a Dubai based company to import 720,000 tonnes of diesel for a period of one year, the CPC Marketing Division told The Sunday Leader.
The letter of award is expected to be issued to the Dubai based Al-Ain International Petroleum Derivation Trader L.L.C within two weeks once their performance guarantee from Dubai is received, Marketing Division sources at the CPC who requested anonymity said.
When asked what the contract cost would be, they said that it could vary from month to month as it would depend on the prices on the date of loading.
“We expect around 15 shipments of diesel for a one year period and the price would be based on the Platts prices – the internationally recognised oil price index.
“Depending on the Platts price index we would have to reimburse the funds. We have also got approval from the Attorney General and no sooner the necessary documents are ready the deal would be signed,” they said.