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CPC reportedly buying Iranian crude thru’ third parties
View(s):A crude oil shipment delay and changes in a bill of certification have given rise to speculation that Sri Lanka is procuring Iranian crude from third parties despite imposed sanctions imposed by the United States.
The Ceylon Petroleum Corporation (CPC) contracted a company by the name of Mercol General Trading LLC to supply a consignment of ‘Murban’ light crude oil which could be refined at the Sapugaskanda refinery. The shipment is due to arrive at the Colombo Port from Sharjah at any time. There has already been a delay of 17 days from its scheduled date of arrival.
The certification sought to be produced by Mercol is different to the usual certification required by CPC for Murban, authoritative sources said, adding that the load port particulars appear to have been changed. This delay in Mercol’s crude oil shipment and changes in the bill of certification have given rise to suspicions that the tanker, which is expected on October 24, is a third-party shipment of Iranian crude.
The sources said that, despite a US warning not to purchase crude oil from Iran, the CPC was continuing to buy Iranian crude from ships in international waters — thus evading US sanctions. The deal with Mercol may have been one such attempt to buy Iranian crude, they said.
Meanwhile, it was also revealed that the CPC was desperate to continue operations at the Sapugaskanda oil refinery when it contracted Mercol, an international chartering company of the United Arab Emirates. The refinery is now running at reduced capacity of 35,000 barrels a day and the delay in the shipment will compel the authorities to shut down the country’s only refinery as there was inadequate crude for refining, they added. Capacity stands at 50,000 barrels a day.
The state-run refinery has faced closure from time to time due to supply shortfall after the purchase of Iranian oil was halted by US sanctions.
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