Oman Oil Company (OOC) has signed an MoU with Sri Lankas Ceylon Petroleum Corporation (CPC) to promote investment opportunities in oil and gas exploration and refining between both countries.
The agreement was signed by Nasser bin Khamis al Jashmi, undersecretary of the Ministry of Oil and Gas, on behalf of OOC and CPC chairman Dayanada Widanagachchi.
Sri Lanka is looking at ways reduce its dependence on Iranian oil in the face of ongoing US sanctions threats.
Jashmi talked about the existing areas of co-operation, with OOC subsidiary Oman Trading International (OTI) - which sells Oman's crude through the Dubai Mercantile Exchange - already the major supplier of liquefied petroleum gas (LPG) to the Sri Lankan domestic market, reported the Oman News Agency.
"The MoU will enhance the existing cooperation between the sultanate and Sri Lanka in various areas related to the energy sector. OOC is always on the lookout for new investment opportunities yielding good economic returns within and outside the sultanate," said Jashmi.
Talal al Aufy, chief executive of OTI, spoke to Muscat Daily last month about how the company wanted to expand into the Sri Lankan market as demand is set to grow.
"Currently, OTI is the main supplier of LPG to the Sri Lankan market and hence we are looking at expanding our business portfolio to supply other refined products and possibly crude," said al Aufy.
