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* Sri Lanka's crisis-ridden petroleum authority incurring heavy losses
Sat, Jul 12, 2014, 12:51 pm SL Time, ColomboPage News Desk, Sri Lanka.

July 12, Colombo: Sri Lanka's petroleum supplier, Ceylon Petroleum Corporation (CPC) is presently incurring heavy losses due to disarray in the establishment, sources at the state-owned enterprise say.

CPC is currently facing a number of problems due to breakdowns in the pipelines pumping the oil from tankers anchored in the sea to the Muthurajawela storage facility.

The blasts in the pipelines of the out harbor oil unloading buoy has delayed unloading the crude which has made the CPC to pay demurrage charges for the anchored crude oil ships while the lack of crude has halted operations at the Sapugaskanda Refinery.

According to the sources, the CPC is also incurring heavy losses due to issuing high-priced low sulphur petroleum to the thermal power stations to generate electricity as substitute for low priced furnace oil.

CPC has failed to continue the supply of furnace oil due to the present crisis, CPC sources say.

CPC recently rejected a shipment of furnace oil due to low quality and the next shipment is expected to arrive in the country on July 23.

According to sources, another ship containing 90,000 MT of crude oil had arrived at the Colombo Harbor on Thursday, the Daily Mirror reported.

With that shipment four crude oil ships are currently anchored at the port with an accumulated total of 290,000 MTs of unloaded crude.

Sources say the CPC will have to pay US$ 30,000 per day for each ship as demurrage after the first week from ship's arrival, for anchoring without unloading crude oil.

However, the Ceylon Petroleum Corporation reiterated that there are adequate refined fuel stocks at the depots and there will not be any shortages.

Acting Chairman of the CPC S. Amarasekera has said that the repairs on the blasted pump had been completed and it is being tested for leaks.

The official said the country has refined fuel stocks sufficient for a month.

** Related Story :: Crisis at Sri Lanka petroleum authority as damaged buoy halts unloading of refined crude

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