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CPC issues tender to buy Algerian crude
View(s):The Ceylon Petroleum Corporation has issued its first term tender to buy Algerian Saharan blend crude for delivery between February and September, according to a tender document and a company source, a Singapore datelined Reuters report said yesterday.
CEYPETCO plans to buy 2.1 million barrels of Saharan Blend, or three cargoes of 700,000 barrels each, to be delivered to Colombo over eight months, the document showed
The tender will close on Dec. 6 with offers valid for another three months. Earlier the Peroleum Ministry said CPC was testing a crude oil sample from Algeria to widen supply sources for its Sapugaskanda refinery which was overhauled to refine largely the Iranian crude. The Ministry said that after the United States sanctions on Iran came into effect, the CPC stopped importing the Iranian crude and was looking for alternative crude blends to diversify its sources of supply.
The CPC’s 50,000 barrels a day refinery was revamped to refine Iranian crude oil but, of late, it has been updated to refine other crude blends also, an official said.