Mr. Anver Dole

President Plastics & Rubber Institute Sri Lanka

Holding a Chemistry Honours degree with Mathematics as subsidiaryfrom the University of Ceylon (Peradeniya Campus), Mr. Anver Dole isthe President of the Institute of Management of Sri Lanka (IMSL), theChair of the Employers’ Federation of Ceylon : ‘Employer Network onDisability’, Chairman of ESCO Rehab Sri Lanka, and serves on theCouncil of the Asian Association of Management Organizations (AAMO)which comprises 19 national management organizations (NMO’s) in theAsia Pacific region.

He was the first individual from the private sector to be electedPresident of the Institute of Chemistry, and was President of theChemical Sciences Section of the Sri Lanka Association for theAdvancement of Science(SLAAS).

Petrochemical Conclave – 2013

Delhi, India – 18th March ‘13

- Anver Dole / President

Petrochemicals – The

Sri Lankan Perspective

Plastics & Rubber Institute of Sri Lanka

We interact with numeroussuch products each day, from the synthetic fibers

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used in a fleece jacket on acool day, to the plastics usedin a toothbrush or in the

Petrochemicals in ourdaily life

fabrication of a steering wheel.

A huge variety of products aremade with petrochemicals, including plastics, soaps,

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pharmaceuticals, fertilizers,

therefore enormous.The potential for investment is •

pesticides, detergents, flooring, solvents, epoxies etc.

The Ceylon Petroleum Corpn. –a stateenterprise was set up in 1961 to supplythe fuel needs of the country

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In 1964, CPC took over entire businessof import, sale & distribution of petroleum

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1968 Built a 38,000 BPD refinery at acost of LKR 175 Mn.

•1969 –Refining capacity increased to50,000 BPD; CPC also enteredAgrochemical business.

products.

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1971 – The Bunkering operationsat Ports, & Aviation Re-fuellingactivities were Integrated with

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1978 – Built a factory tomanufacture Nylon 6 yarn for

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textiles, tires, & finishing

the CPC.

Industries costing LKR 603 Mn.

1987 – A Single Point Buoy Mooring (SPBM) facility was installed 9.2 Km off shore Colombo port along with

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intermediate crude oil storage tank farm at Orugodawatte costing LKR 1,764 Mn.

1992 – Modernised Refinery & increased efficiency by revamping the crude oil

•Currently processes 2 million metric tonsOf light crude oil.

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Distiller unit at a cost of LKR 250 Mn.

An upgrade to SL’s 50,000 BPDrefinery, involving doubling its capacity & boosting light

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The feasibility & front-end-engineering design (FEED) has

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already been completed for

distillate yields, is on the cards,

the project.

& could cost up to US $ 1.5 Bn.

The state-run CPC builtover 50 years ago yields a lowproportion of light distillates &

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The CPC lost 89 billion LKR in2012, and is hoping to reduce

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losses this year & break-even

higher proportion of furnace

in 2 years.

oil compared to technology available to day.

Sri Lanka will amend thePetroleum Resources Act No.26

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of 2003 to ensure conformity

the petroleum industry.

•The amended Act, approved bythe Cabinet, will also introduce

to the international standards in

principles of good governance into Sri Lanka’s Oil & GasIndustry.

Petroleum Resources Act

PLASTICS IMPORTS – SRI LANKA

Sri Lanka’s per capitaconsumption of plastics is 9 kgper person per annum.

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Investment.Interesting opportunities for

•Will increase steadily in theFuture

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Exploration of the North Western Mannar sea bed for oil was launched in 2008,

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was given to Cairn India for drilling.

& the top block, Block 1, of the 8 blocks identified by seismicstudies as viable oil resources,

Oil Drilling

Cairn Lanka, subsidiary ofCairn India discovered gas &liquid hydrocarbon deposits in

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its first exploration phase in 2

Commercial viability is not yet

•This year Cairn drilled the fourthwell, but reported negative

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of the 3 wells.

known.

results.

Cairn has rights to drilling one of 8 blocks in the Mannar Basin. China & India havebeen offered one each, which they have

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yet to accept.

Vietnam & Sri Lanka signed a deal on oil

Gazprom & Malaysia’s Petronas are two other Co’s that have expressed interest.

•Sri Lanka has no oil reserves of its own & spends over US $ 4 billion a year onimports.

exploration last year. Russia’s •

OilDrilling

Sri Lanka has decidedto expand the oil

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exploration activitiesfrom Mannar to Gallein the South, this Year.

Sri Lanka is currently in the processof inviting Co’s to bid for licenses onsome of the 13 blocks in the

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Cauvery & Mannar Basins off its

Sri Lanka’s Petroleum Resource

that Cairn’s abandonment of thelatest well, was not expected tohave an impact on prospective

Development Secretariat announced•

bidders.

Northwest coast.

Sri Lanka has said that seismic data by Norway’s TGS Nopec Geophysical Co. ASA, had shown the potential

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for more than 1 billion barrels of oil

area of the Cauvery basin.

Houston, USA & will end 5 monthslater.

Bids were opened last week in •

under the sea in a 30,000 sq. km

The world has produced•

about 1 trillion barrels of

• Approx. 2 trillion barrels more

crude oil to date.

are expected to be producedover the next century.

Petrochemicals are slow to breakdownin the natural environment, & raises issues about proper use & disposal of

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consumer products.

These products are not renewable becausethey come from resources built up overthe course of millions of years. When the

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are exhausted, a serious problem could emerge for the petrochemical industry

These challenges need to be addressed,

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world’s deposits of crude oil & natural gas

& the sooner the better.

Environmental concerns

Sri Lanka was ranked firstin South Asia in Human

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Human Development

Development Index:

Index

Health, Education &Income (UNDP)

Sri Lanka was rankedat 43 out of 111

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Quality-of-Life Index

countries.

Sri Lanka made it to the influential Country Brand Index for the first time in the compilation’s 8 year history, debuting

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at a “respectable” 67th rank out of 118countries surveyed by Future Brand.

Sri Lanka was ranked 67th overall and 13th among Asia Pacific nations, for

described by Future Brand as a “wonderful achievement for a debutant”.

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2012 / 2013, & Sri Lanka’s rank was

Global Country Brand Index (CBI)

FB explores the complexity, dynamics and benefits of how nations manifest as brands.

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including residents, investors, tourists and foreign governments

It was a proprietary Hierarchical Decision Model (HDM) todetermine how key audiences

perceive a country’s brand.

Sri Lanka has bettered its •

ranking to 81 from 89 in an

compiled by the WB & IFC, by

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computerizing key processes.

It marks the first time, since

ease of doing business ranking

2005, that a South Asian economy has ranked so high.

Ease of doing Business(WB & IFC)

Sri Lanka :

Ease of doingBusiness Rankings

2010 : 105 out of 1832011 : 982012 : 892013 : 81

Sri Lanka

South Asia Rankings

Maldives: 107: 108: 129: 132

81: 95

PakistanNepalBangladesh

:

IndiaBhutan : 148Afghanistan : 168

Sri Lanka’s, GDP percapita is US $ 2,864 andexceeds all other countries

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in South Asia other than

GDP per Capita

the Maldives.

Source : IMF World Economic Outlook Data base.

In 2011 Sri Lanka achieved 8.2% economic growth rate - highest since Independence.

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than 8% for two successive

•This is the first time that Sri Lanka’s economy grew at more

• Growth estimate for 2012is 6.5% -(ADB)

years.

Economic growth rate

Sri Lanka boasts of a stableand strong Government.

Unprecedented infrastructure

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development has taken placesince the cessation of the

including in the North & East.

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30 year war in 2009,

As I speak this morning, Sri Lanka’ssecond International Air port is beingopened at Mattala in the

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Hambanthota district with capability

A new Port in the deep south hasalready been opened.

•Visitors to Sri Lanka have been very

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impressed with the visible changesthat are currently taking place.

to handle A 380’s.

South Asia & most certainly Sri Lanka, has much to offer potential

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investors inPetrochemicals.

Thank You !