Oman denies involvement in $3.85bn Sri Lankan refinery

Sri Lankan officials earlier this week told reporters that Oman was to take a 30% stake in a 200,000 bpd facility
Oman denies involvement in $3.85bn Sri Lankan refinery
Even after the Omani denial, Sri Lankan Board of Investment director general said that she believed the deal was still going ahead.
By Bernd Debusmann Jr
Thu 21 Mar 2019 11:12 AM

Oman’s government has denied that it is part of a $3.85 billion project to build an oil refinery in Sri Lanka following claims from officials on the island nation.

On Tuesday, Sri Lankan officials told reporters that a joint venture between Oman’s oil ministry and an Accord Group-owned Singapore investment vehicle had agreed to build a 200,000 barrel-per-day refinery near Hambontota port.

The officials claimed that the Omani ministry was to take 30 percent – Sri Lanka’s single largest foreign direct investment.

Salim Al-Aufi, Oman’s undersecretary of Oman’s ministry of oil and gas, on Wednesday said that “no one on the panel is aware of this investment in Sri Lanka.”

“It came as news to me,” he added. “I don’t know who is signing the cheque for $3.8 billion.”

According to an industry source cited by Reuters, discussions about the project involving Oman were still in an early stage.

Even after the Omani denial, Sri Lankan Board of Investment director general said that she believed the deal was still going ahead.

“We approved the project for a joint venture of [a] Singapore company and Oman,” she said.

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