performance report - 2014
TRANSCRIPT
MINISTRY OF PETROLEUM INDUSTRIES
Performance Report - 2014
“Let us make Sri Lanka as the most efficient Petroleum Energy Hub in the region.”
CONTENTS Page No.
Message from the Hon. Minister of Petroleum Industries vii
Message from the Hon. Deputy Minister of Petroleum Industries ix
Preamble by Secretary to the Ministry of Petroleum Industries xi
SECTION I
1. An Overview of the Petroleum Trade 1.1 World Petroleum Trade 3 1.2 Petroleum Industry of Sri Lanka 10
SECTION II
2. Performance 2.1 Formulation of Policies, Programs and Projects 21 2.2 ImportsandRefining 26 2.3 Storage, Distribution and Sale 30 2.4 Infrastructure Development 34 2.5 InstitutionalAdministration 36 2.6 Accounts 44 3. Appendix 53
SECTION I - TABLES Page No.
Table 1.1 Proved Reserves of Crude Oil 2009 - 2013 5Table 1.2 Top World Oil Reserves Holders 2013 5Table1.3 TopWorldOilProducers2013 6Table1.4 TopWorldOilNetExporters2012 6Table 1.5 Top World Oil Net Importers 2012 7 Table1.6 TopWorldOilConsumers2013 8Table 1.7 Imports of Crude Oil 2009 - June 2014 11 Table1.8 LocallyRefinedPetroleumProducts2009-June2014 11Table 1.9 Retail Sale Prices of Petroleum Products 2005 - 2013 12 Table1.10 ElectricityGenerations2008-2013 13Table1.11 SalestoPowerPlants2008-2013 14Table 1.12 Sales to Power Plants January - June 2014 14 Table1.13 VehiclesandTransportStatistics2008-2013 15Table1.14 BunkeringBusiness2008-2013 16Table 1.15 Petroleum Products Sales Outlets 2014 17
SECTION II - TABLES
Table2.1 CPC’sImportsof RefinedPetroleumProducts2012-June2014 27Table 2.2 Imports of Crude Oil 2012 - June 2014 27 Table2.3 CPC’sImportsof Agrochemicals2012-2013 28Table 2.4 CPC’s Imports of Agrochemicals January - June 2014 29 Table 2.5 CPC’s Imports of Bitumen 2013 29 Table2.6 CPC’sImportsof BitumenJanuary-June2014 30Table 2.7 CPSTL’s Sales 2013 31 Table2.8 CPSTL’sSalesJanuary-June2014 32Table 2.9 CPC‘s Sales 2012 - 2013 33 Table 2.10 CPC’s Sales January - June 2014 33 Table 2.11 Summary of Inquiries made by Public Petition Committee andMembersof Parliament 36Table 2.12 Training Programs Provided by the Ministry 2013 39 Table 2.13 Training Programs Provided by the Ministry January - June 2014 40 Table 2.14 Programs Implemented under Deyata Kirula 2013 41 Table 2.15 Programs Implemented under Deyata Kirula 2014 41 Table2.16 AuditQuarriesandSpecialInvestigations2013-June2014 42Table 2.17 CPSTL Cadre as at 30th June 2014 43
Page No.
Table2.18 RecurrentExpenditureof theOfficeof Hon.Ministers 2013 - June 2014 44 Table 2.19 Recurrent Expenditure of the Ministry 2013 - June 2014 44 Table2.20 CapitalExpenditureof theOfficeof Hon.Ministers2013-June2014 45Table 2.21 Capital Expenditure of the Ministry 2013 - June 2014 45 Table2.22 GovernmentOfficers’AdvanceAccountandActualExpenses 2013 - June 2014 45 Table2.23 CPC’sIncomeStatement2012-2013 46Table 2.24 CPC’s Balance Sheet 2012 - 2013 47 Table2.25 CPC’sIncomeStatementJune2014 48Table2.26 CPC’sBalanceSheetJune2014 49Table 2.27 CPSTL’s Income Statement 2013 - June 2014 50Table2.28 CPSTL’sBalanceSheet2013-June2014 51
SECTION I - FIGURES
Figure1.1 WorldProvedReservesof CrudeOil1980-2013 4Figure1.2 WorldOilProduction2008-2013 6Figure1.3 WorldOilConsumption2008-2013 7Figure1.4 WorldOilDemandbySectors2010 8Figure 1.5 Monthly Brent Price of Crude Oil January - June 2014 9 Figure1.6 AnnualBrentPriceof CrudeOil2000-2013 9Figure 1.7 Monthly Price of Crude Oil in Different Markets January - June 2014 9Figure1.8 MonthlyPlattsPricesof RefinedPetroleumProducts January - June 2014 9Figure1.9 PlattsPricesof RefinedPetroleumProducts2002-2013 9Figure 1.10 Liquid Petroleum Gas Imports 2007 - 2013 11 Figure 1.11 Lubricants Imports 2007 - 2013 11Figure 1.12 Retail Sale Prices of Petroleum Products 2005 - 2013 13Figure 1.13 Sales of Liquid Petroleum Gas 2009 - 2013 17
SECTION II - FIGURES Figure2.1 RefineryProductionJanuary-June2014 30
SECTION I - BOXES Page No.
Box 1.1 Alternative fuels and vehicle technology development and penetration will limit demand growth 3Box 1.2 Who are the major players supplying in the world oil market? 4
SECTION II - BOXES Box 2.1 Introduction of 92 Octane Petrol 22 Box 2.2 Introduction of Lanka Super Diesel Four Star 22
APPENDIX-TABLES
APPENDIX
Table1 WorldProvedReservesof CrudeOil1980-2013 55Table2 WorldOilProduction2008-2013 55Table3 WorldOilConsumption2008-2012 55Table4 MonthlyBrentPriceof CrudeOilJanuary-June2014 56Table5 AnnualBrentPriceof CrudeOil2000-2013 56Table6 MonthlyPriceof CrudeOilinDifferentMarkets January-June2014 56Table7 MonthlyPlattsPriceof RefinedPetroleumProducts January - June 2014 57Table8 PlattsPriceof RefinedPetroleumProducts2002-2013 58Table 9 Imports of Liquid Petroleum Gas 2007 - 2013 59Table 10 Imports of Lubricants 2007 - 2013 59Table11 PriceRevisionsof PetroleumProducts2005-September2014 60Table12 ElectricityGenerations2005-2013 62Table13 CPC’sSalestoPowerPlants2008-2013 63Table14 CPC’sSalestoPowerPlantsJanuary-June2014 64Table15 OilProductionbyCPC’sRefinery2000-2013 65Table16 OilProductionbyCPC’sRefineryJanuary-June2014 66Table17 Ministry’sExpenditure2006-2012 67
Message from the Hon. Minister of Petroleum Industries
It gives me great pleasure to present this publication titled “Performance Report - 2014” to Parliament at the committee stage of Budget 2015 on the activities carried out by the Ministry of Petroleum Industries together with the Ceylon Petroleum Corporation (CPC) and the Ceylon Petroleum Storage Terminals Ltd (CPSTL), two agencies coming under the purview of the Ministry.Thereportoutlinestheservicesplannedandrenderedtofulfillthepetroleumproductsrequirements of the country during the period of eighteen months from January 2013 to June 2014 by the Ministry and its two entities. The Ministry has taken several policy decisions and initiated programs to contribute successfully to its objectives during the period from January 2013 to date. Maintaining fuel stocks required for an uninterrupted fuel supply, monitoring the fuel stocks weekly, collaborative decision making, preparing realistic and transparent operational procedures, upgradation of fuel standards to ensure the high quality products, improvement of testing laboratories with the state of art technology are some of the major actions taken during the reporting period.In addition, very important policy decisions which directly contribute to the well-being of the people were made by the Ministry together with the CPC and the CPSTL. Introduction of Petrol of 92 Octane in place of Petrol of 90 Octane and Lanka Super Diesel Four Star (10ppm) in place of Lanka Super Diesel of 500ppm took place with effect from 1st January 2014 and 22nd
August2014respectively.Alsoanalternativemixof crudeoilappropriateforrefineryoperationswas found through testing of number of samples as a solution for the problems faced owing to sanctions of USA against Iran.Although there were several operational issues arisen due to damage of the buoy hoses of Single Point Buoy Mooring (SPBM) Systems at Muthurajawela and off Colombo harbor in the middle of this year, my Ministry in collaboration with its two agencies - CPC and CPSTL was able to manage these issues successfully and ensure the uninterrupted fuel supply to the country all throughout.I wish to place on record my sincere gratitude for the commitment and the support extended by theDeputyMinister,SecretarytotheMinistryandotherofficials,Chairmenandotherofficialsof the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Limited to make the performance of the Ministry during the period a complete success.
Anura Priyadarshana Yapa, M.P.Minister of Petroleum Industries
Message from the Hon. Deputy Minister of Petroleum Industries
The demand for the fuel consumption has increased due to rapid development taking place in the country at present. Based on the cross cutting features of petroleum industry among all economic development sectors, it has to develop in order to ensure the energy security of the country.
In view of the above, the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Limited under the guidance of the Ministry of Petroleum Industries have adopted decisive policies and implemented several programs and projects for the development of the sector. Establishment of a modern fuel hydrant system and an aviation refueling terminal along with Jet A-1 storage tanks having a capacity of 3.0 million litres at the Mattala Rajapaksa International Airport (MRIA) is an important milestone in this respect. Introduction of Petrol of 92 Octane and Lanka Super Diesel Four Star (10ppm) is also note worthy achievements made by the Ministry and the two agencies – CPC and CPSTL in 2014.
The Ministry together with the CPC and the CPSTL has stepped into initiating actions for building country’s infrastructure requirements for the petroleum industry at present. The investments made through the timely programs will no doubt help country’s socio-economic progress. I take this opportunity to congratulate Minister of Petroleum Industries, Hon. Anura Priyadarshana Yapaforbeingabletoensuredeliveryof aconsumer-friendly,efficientandeffectiveserviceinthe petroleum industry.
Finally, I emphasize that the Ministry of Petroleum Industries together with its two entities-the CPC and the CPSTL will extend its fullest support for the government development initiatives within the contours of the “Mahinda Chintana- Vision for the Future” development policy framework by taking relevant actions to ensure the improvement of petroleum industry for the national development and prosperity.
Sarana Gunawardana, M.P.Deputy Minister of Petroleum Industries
Preamble
It is the responsibility of all government agencies to submit a performance report on the progress achieved by the respective agencies during the current year to Parliament at the committee stage of next year budget. The Ministry of Petroleum Industries as a major policy making body in respect of imports, exports, distillery, storage and distribution of petroleum products in Sri Lanka presents this report titled “Performance Report - 2014” for the above purpose.
Dynamicsituationof theworldoilmarketdohaveasignificanteffectonthelocalpetroleumindustry.Demand for the fuel has increased over the years due to improvements of economic, social and cultural spheres. However, since Sri Lanka is not an oil producing country yet, the total oil requirement has to be met from imports. Approximately 25% of annual total imports cost of the country has to be spent for imports of petroleum products which are required to meet the local petroleum oil demand. Assuch,functionsof importation,refininganddistributionhavetobemanagedproperly.
As shown in the internationally recognized petroleum related outlooks, the total world oil supply is about 90 million barrels per day. Although the oil consumption of Sri Lanka is miniscule, making effective policy decisions is vital for the development of the local petroleum industry since the second largest primary energy source is petroleum which is about 43%. In this context, maintaining a periodically updated database is very much essential to make policy decisions timely based on the past experiences and analyses. Therefore, the Ministry of Petroleum Industries has been developing its Performance Reports periodically incorporating important data and information on World and Sri Lanka’s Petroleum Industry. These statistics are of significance to provide a comprehensiveunderstanding on the present scenario of the both world and Sri Lanka’s petroleum industry.
This report presents the performance of the activities carried out by the Ministry and the two agencies coming under its purview – the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Limited during the period from January 2013 to June 2014 in Section II in addition to the analysis made in Section I of the report.
The data and information required for the report was collected from the Internet and agencies such asDepartmentof SriLankaCustoms,Departmentof MotorTraffic,CeylonPetroleumCorporation,Ceylon Petroleum Storage Terminals Limited, Lanka Indian Oil Company, Laugfs Gas PLC and Litro Gas Company. I take this opportunity to extend my sincere gratitude to all these institutions for supporting this Ministry to prepare this report.
R. H. S. SamaratungaSecretaryMinistry of Petroleum Industries
MINISTRY OF PETROLEUM INDUSTRIES
VISION “To be valued in the region for success and
innovation in managing downstream Petroleum Industries”
GOALS Formulation of appropriate policies to manage the Petroleum
Industry activities in an efficient and effective manner
Adopting modern technology to meet the customersatisfaction of energy requirements
MISSION“To become the most efficient Petroleum Energy Hub in the region, adopting appropriate policies
and deploying innovative management techniques”
Ministry of Petroleum Industries x i i i
POWERS, DUTIES & FUNCTIONS OF THE MINISTRY(AsperthegovernmentextraordinarygazettenotificationNo.1651/20datedApril30,2010)
Formulation of policies, programs and projects with regard to the subjects of Petroleum Industry and all subjects based on the “Mahinda Chintana-Vision for the Future” and any other national policies adopted by the Government.
Direction for the implementation of such policies, programs and projects within the time lines with a view to achieve the objectives.
Provision of all public services that come under the purview of the Ministry in an efficientandpeople-friendlymanner.
Reforming of all systems and procedures to ensure the conduct of business in an efficientmanner, deployingmodernmanagement techniques and technology whereapplicable while eliminating corruption and waste.
Import,refining,storage,distributionandsaleof petroleumbasedproductsandnaturalgas.
Producingandrefiningof petroleumproducts.
Distribution and making of gas from sources such as petroleum products.
Development of infrastructure facilities for supply and distribution of fuel.
MAIN DIVISIONS OF THE MINISTRY
Establishment & Administration Division Development Division Finance Division Procurement Division Internal Audit Division
INSTITUTIONS UNDER THE PURVIEW OF THE MINISTRY
Byvirtueof governmentextraordinarygazettenotificationNo.1651/20of theDemocraticSocialist Republic of Sri Lanka dated April 30, 2010, the following institutions have been assigned to the Ministry of Petroleum Industries.
Ceylon Petroleum Corporation (CPC) Ceylon Petroleum Storage Terminals Ltd (CPSTL)
xiv Ministry of Petroleum Industries
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Ministry of Petroleum Industries xv
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Secretary 01 01 -
Additional Secretary 03 03 -
Chief Accountant 01 01 -
Senior Assistant Secretary 02 02 -
Chief Internal Auditor 01 01 -
Director 01 01 -
Assistant Secretary 02 01 01
Assistant Director 02 02 -
Accountant 01 01 -
LegalOfficer 01 01 -
Total 15 14 01
Secondary Level
AdministrativeOfficer 01 01 -
Translator 01 - 01
Total 02 01 01
Tertiary Level
Development Assistant 20 19 01
Public Management Assistant 27 21 06
Information Technology Assistant 02 01 01
Coordinating Secretary to the Secretary 01 01 -
Still Photographer 01 - 01
Video Cameraman 01 01 -
Total 52 43 09
Primary Level
Driver 13 11 02
Camera Helper 01 01 -
KKS 13 12 01
Total 27 24 03
Total 96 82 14
MINISTRY CADRE - AS AT 30TH JUNE 2014
xvi Ministry of Petroleum Industries
Ministry of Petroleum Industries 1
SECTION I
AN OVERVIEW OF THEPETROLEUM TRADE
2 Ministry of Petroleum Industries
Ministry of Petroleum Industries 3
1. AN OVERVIEW OF THE PETROLEUM TRADE
1.1 World Petroleum Trade
1.1.1. Introduction
Fossilfuelwhichaccountsfor87%of theworldprimary energy demand in 2012 is worth as a portable, dense energy source, powering the vast majority of vehicles and the base for many industrial chemicals. Hence, it has become one of the world’s most important commodities. Petroleum is the largest primary commodity of international trade in terms of both volume and value. There is also an obvious national security and economic element involved in it for both producing/exportingandconsuming/importingcountries. The political stability and economic survival of both groups of countries and the entire international community depend to a large extent on the availability and affordability of oil in the international market. It is widely believed that high oil prices were responsible for several global economic recessions.
As the market for petroleum products is worldwide and highly fragile, it is impossible for any country to insulate itself from the world’s dominant oil-producing region - the Middle East. Even if a country does not import a single drop of oil from the Middle East, any disruption in that region dramatically affects the price of oil everywhere else in the world.
Box 1.1
Alternative fuels and vehicle technology development and
penetration will limit demand growth
Beyond volume patterns, oil demand in the road transportation sector is determined by the efficiency of the vehicle fleet usinginternal combustion engines (ICE), and the pace of development and penetration of vehicle technologies, including hybrids and non-petroleum-based engines. The efficiencyof ICEvehicleswillbedeterminedby policies, technological developments and consumer preferences, as well as scrapage
rates, the choice between gasoline and diesel for passenger cars and possible changes in the scope for efficiency improvementsin commercial vehicles. Possibilities for alternative technologies in the transportation sector include hybrids (seen as the most likely to emerge over the projection period to 2035), Plug-in hybrid electric vehicles (with their high price remaining a key challenge), battery electric vehicles (though they also have a high price, as well as significantlyshorter vehicle range and long charging time) and natural gas vehicles (which are limited by the availability of refueling infrastructure, despite growth in some markets). The average global decline in oil use per vehicle is around 2% p.a…………………….
Source: OPEC World Oil Outlook 2013
1.1.2 World Petroleum Supply
“Proved Reserves” are the estimated quantities of crude oil which geological and engineering data demonstrate with a reasonable certainty to be recoverable in future years from known reserves under existing economic and operating conditions. Unfortunately, the estimation of reserves is far from being an exact science. Estimation of “world’s proved reserves” involves two major dimensions:
Determination of the total volume of oil in place at every oil reserve in the world
Determination of what percentage of oil can be recovered from each oil reserve.
Unfortunately, the volume of oil in place is never precisely known. Determining what amount can be ultimately recovered depends upon many assumptionstoincludethemethods/techniquesused to recover the oil and the levels of success forthemethods/techniquesused.
The modern studies on the estimates of petroleum reserves indicate that the world has more than enough oil resources to satisfy consumers’ demand for decades. The key issues on its
4 Ministry of Petroleum Industries
world supply surround basically on profitableexploration, production and distribution.
Figure 1.1 World Proved Reserves of Crude Oil 1980-2013 (Bn.bbl)
Oil Reserves
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Source: Ministry of Petroleum IndustriesNote: Data-http://www.eia.gov/cfapps/ipdbproject/ iedindex3.cfm
Box 1.2
Who are the major players supplying in the world oil market?
The world oil market is complex. Governments as well as private companies play roles in moving oil from producers to consumers. Government-owned national oil companies (NOCs) control most of the proved oil reserves (85% in 2010) andproduction (58% in 2010). InternationalOil Companies (IOCs), often well-known stockholder corporations own the balance of the reserves and produce the remainder of the oil. Worldwide proved oil reserves in 2013are1.6 trillionbarrels andproductionaverages 90 million barrels a day.
Different types of oil companies operate differently. There are three types of companies (each type has different operational strategies and production-related goals) that supply crude oil to the world market.
i. International oil companies (IOCs), including ExxonMobil, BP and Royal Dutch Shell are entirely investor-owned and primarily seek to increase shareholders value and make investment decisions based on economic factors. These companies typically move quickly to develop and produce the oil resources available to them and sell their output in the global market. Although these producers are affected by the laws of the countries in which they produce oil, all decisions are ultimately made in the interest of the company, not a government.
ii. National oil companies (NOCs) that operate as an extension of the government or a government agency: This category includes Saudi Aramco (Saudi Arabia), Pemex (Mexico) and PdVSA (Venezuela). These companies support theirgovernments’programsfinanciallyand/orstrategically.Theyoftenprovidefuels to domestic consumers at prices
lower than those in the international markets. These companies do not always have the incentive, means or intention to develop their reserves at the same pace as the commercial companies due to the diverse situations and objectives that are not necessarily market-oriented. The objectives of NOCs pursue, however include employing citizens, furthering a government’s domestic or foreign policy objectives, generating long-term revenue and supplying inexpensive domestic energy. All NOCs of the Organization of the Petroleum Exporting Countries (OPEC) members fall into this category.
iii. NOCs with strategic and operational autonomy: These NOCs function as corporate entities and do not operate as an extension of the government of their country. This third category includes Petrobas (Brazil) and Statoil (Norway). These companies often balance profit–oriented concerns and the objectives of their country with the development of their corporate strategy. While these companies support their country’s goals, they are primarily commercially driven.
Source : http://www.eia.gov/energy_in_brief/article/world_oil_market.cfm
As shown in Figure 1.1 there is an increasing trend of world proved reserves of crude oil from 2002 to 2012 than earlier.
Ministry of Petroleum Industries 5
Table 1.1 Proved Reserves of Crude Oil 2009 - 2013 (Bn.bbl)
Region 2009 2010 2011 2012 2013
North America 207.71 206.30 208.90 210.53 213.90
Central and South America 122.69 124.64 237.11 238.82 325.93
Europe 13.66 13.31 12.08 11.88 12.02
Eurasia 98.89 98.89 98.89 98.89 118.89
Middle East 746.00 753.36 752.92 799.61 802.16
Africa 117.06 119.11 123.61 124.21 127.74
Asia and Oceania 34.01 40.14 40.25 42.03 45.36
World 1,340.02 1,355.75 1,473.76 1,525.96 1,645.98
Source: http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm
Table 1.2 Top World Oil ReservesHolders - 2013 (Bn.bbl)
No. Country Quantity
01 Venezuela 297.60
02 Saudi Arabia 267.91
03 Canada 173.11
04 Iran 154.58
05 Iraq 141.35
06 Kuwait 104.00
07 United Arab Emirates 97.80
08 Russia 80.00
09 Libya 48.01
10 Nigeria 37.20
Source:http://gulfbusiness.com/2013/04/top-10-countries-with-the-worlds-biggest-oil-reserves/#.Uy5Lbc7ozXQ
Table 1.2 shows that the top ten countries possess the biggest oil reserves in the world by 2013. Among these, top five places are achieved byVenezuela, Saudi Arabia, Canada, Iran and Iraq respectively. Venezuela surpassed Saudi Arabia in 2012 to become the holder of the largest oil reserves in the world. Although the Venezuela
accounted for the world largest proved oil reserves, its total oil supply in 2013 was only 2.5 million barrels per day.
However,SaudiArabiahasalmostone-fifthof the world’s proven oil reserves and United States of America has become the leader of world fuel supply in 2013. Canada’s oil sands are a significant contributor to the recent growth inthe world’s liquid fuel supply and comprises the vast majority of the country’s proven oil reserves becoming third world leader. International sanctions have had a drastic impact on Iran’s energy sector; the country’s oil production has decreased dramatically over the last two years.
Figure 1.2 shows the world oil production (per day) by regions for the period of six years from2008to2013.Dailyoilproductionintheworld in year 2013 is about 90 million barrels. The countries in the Europe region have been producing a less amount than other six regions. It represents only 4% (3.8 million barrels perday) out of daily oil production in the world in 2013. The countries in Middle East region get thefirstplaceof worldoilproductionovertheperiod2008-2013and the shareof dailyworldoil production in 2013 is 30% (27 million barrels per day). The second largest world oil producing region is North America and its share is 21% (19 million barrels per day).
6 Ministry of Petroleum Industries
Figure 1.2 World Oil Production 2008-2013 (1000bbl/day)
Source: Ministry of Petroleum Industries Note: Data-http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm
0
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North America Central and South AmericaEurope EurasiaMiddle East AfricaAsia and Oceania
Thou
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Year
Topfiveoilproducersintheworldin2013wereUnited States of America, Saudi Arabia, Russia, China and Canada respectively (Table 1.3). United States of America produced 12.3 million barrels per day in 2013 and it has become the top of world oil producers in the year. Although Saudi Arabia had reported as the top of world oil producers in 2012, it has become the second largestbyproducing11.6millionbarrelsperdayin 2013. However in 2013, these two countries could pump nearly 27% of the world’s total. In 2012 they could pump nearly 25% of the world’s totaloilproduction.Topfiveoilexportersintheworld in 2012 are Saudi Arabia, Russia, United Arab Emirates, Kuwait and Nigeria respectively (Table 1.4).
No. Country Quantity
01 United States of America 12,312
02 Saudi Arabia 11,592
03 Russia 10,534
04 China 4,459
05 Canada 4,073
06 United Arab Emirates 3,230
07 Iran 3,192
08 Iraq 3,058
09 Mexico 2,908
10 Kuwait 2,812
11 Brazil 2,710
12 Venezuela 2,489
13 Nigeria 2,372
14 Qatar 2,067
15 Angola 1,889
Source: www.eia.gov/countries/index.cfmNote: (a) Provisional
Table 1.3Top World Oil Producers - 2013 (a)
(1000bbl/day)
No. Country Quantity
01 Saudi Arabia 8,865
02 Russia 7,201
03 United Arab Emirates 2,595
04 Kuwait 2,414
05 Nigeria 2,254
06 Iraq 2,235
07 Iran 1,880
08 Angola 1,778
09 Venezuela 1,712
10 Norway 1,684
11 Canada 1,570
12 Algeria 1,547
13 Qatar 1,389
14 Kazakhstan 1,355
15 Libya 1,313
Source: www.eia.gov/countries/index.cfm
Table 1.4 Top World Oil Net Exporters-2012(1000bbl/day)
Ministry of Petroleum Industries 7
1.1.3 World Petroleum Demand
Global oil demand is on the increase due to demand for energy requirement for transport, industrial, commercial, domestic and other activities.
Figure 1.3 shows the world oil consumption (per day) by regions during the period of last six yearsfrom2008to2013.Dailyoilconsumptionof the world in year 2013 is 90 million barrels. The countries in the African region have been consuming a lesser amount than other six regions. It is only 4% (3.5 million barrels per day) out of daily oil consumption in the world in the year 2013. The countries in Asia and Oceania region getthefirstplaceof worldoilconsumptionovertheperiod2008-2013anditsshareof dailyworldoil consumption in 2013 is 33% (29 million barrels per day). The second largest world oil consuming region is North America and its share is26%(23millionbarrelsperday).
Although the top oil producing region in the world over the period from 2008 to 2013wasMiddle East, its consumption for the same period gets the fourth place in the world. On the other hand, Europe region is the lowest oil producerintheworldovertheperiodfrom2008to 2013 while its oil consumption gets the third place during the same period.
Figure 1.3 World Oil Consumption 2008-2013 (1000bbl/day)
Source: Ministry of Petroleum Industries Note: Data-http://www.eia.gov/cfapps/ipdbproj ect/IEDIndex3.cfm (a) Provisional
The top ten net importers of crude oil are the United States of America, Japan, Germany, South
Korea, France, Italy, China, Spain, India, and the Netherlands. The industrialized world consumes far more petroleum than it produces with the vast majority of it is imported from the Middle East. A combined Europe and Japan consume and import even more oil than the United States. Topfivenetoil importersintheworldin2012are United States of America, China, Japan, India and South Korea respectively (Table 1.5).
No. Country Quantity
01 United States of America 7,440
02 China 5,861
03 Japan 4,579
04 India 2,632
05 South Korea 2,240
06 Germany 2,219
07 France 1,668
08 Singapore 1,360
09 Spain 1,260
10 Italy 1,198
11 Taiwan 1,058
12 Netherlands 949
13 Turkey 614
14 Belgium 607
15 Australia 607
Source: www.eia.gov/countries/index.cfm
Table 1.5 Top World Oil Net Importers-2012(1000bbl/day)
As shown in Table 1.6 the United States of America (U.S.A), the world largest consumer has utilized approximately 19 million barrels per day in 2013, accounting for 21% of the world’s total consumption. However, the U.S.A produced only12.3millionbarrelsperday(13.8%of theworld total oil production) creating a net import need of more than 6.5million barrels per day.This import need is the largest in the world equal to 7.3% of the total world oil production.
The second largest oil consumer is China whose consumption is equal to 11% of the world’s total oil production. Unlike the United States, China produces less amount of petroleum on its own andisforcedtoimportapproximately60%allof what it needs.
0
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15,000
20,000
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35,000
Thou
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Bar
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North America Central and South AmericaEurope EurasiaMiddle East AfricaAsia and Oceania
2008 2009 2010 2011 2012 2013 (a)Year
8 Ministry of Petroleum Industries
No. Country Quantity
01 United States of America 18,887
02 China 10,117
03 Japan 4,563
04 India 3,509
05 Russia 3,320
06 Brazil 3,097
07 Saudi Arabia 2,925
08 Germany 2,405
09 South Korea 2,305
10 Canada 2,304
11 Mexico 2,105
12 Iran 1,870
13 France 1,733
14 Indonesia 1,660
15 United Kingdom 1,513 Source: www.eia.gov/countries/index.cfmNote: (a) Provisional
Table 1.6 Top World Oil Consumers - 2013 (1000bbl/day) (a)
Figure 1.4 World Oil Demand by Sectors-2010
Source: OPEC World Oil Outlook 2013
Residential/ Commercial/ Agriculture
11%
Electricity Generation
6%Transportation
57%
Industry 26%
1.1.4 International Market Price Movements
Cheap and plentiful oil is a critical factor in allowing the world’s economies to regain and maintain a robust economic growth. The price and availability of the oil commodity are controlled by several key parameters such as the number of vehicles in the world, quantity of oil extracted to the world, political stability of oil exporting nations and ability to defend oil supply lines.Due to these highly fluctuating variables,the long term prices of petroleum products have been facing continual changes.
Figure 1.5 shows the monthly price (Brent) of a barrel of crude oil from January to June 2014. When considering the monthly price variation in firstsixmonthsof 2014withregardtoacrudeoilbarrel in the Brent market, it shows that the price at the beginning of the year 2014 (January) US$ 108hasreducedtoUS$107inMarch(exceptinFebruary). Then it has continuously risen up to June (US$ 112). However, the price of a crude oil barrel in the Brent market has increased by 3.7% compared with the price of January (US$ 108) with that of June (US$ 112). Comparingthe price (Brent) of a crude oil barrel in month of January 2014 with that of 2013, it has come down by 4.4% from US$ 113 in January of 2013 toUS$108inthesamemonthof 2014.
In 2013, both France and Germany consumed 4.6%of theworld’soilproductionbutproducedvirtually nothing. The Middle East while producing 30% of world production utilizes 9% of the world’s oil consumption. Asia is almost the reverse, constituting 33% of the total consumption but with 10% of total production in 2013.
When considering petroleum demand by economic sectors, growth in petroleum demand since1980hasbeendominatedbytransportationsector – mainly road transportation, but also aviation, internal waterways and international shipping. The World Oil Outlook (WOO) 2012 shows that over the past three decades, the average annual growth of Organization for Economic Corporation and Development (OECD) and non-OECD countries has been very similar, each around 0.3mb/d. In contrast to bothOECDand Eurasian countries, developing countries also demonstrate a rise in oil use in other sectors eg. petrochemicals, residential/commercial/agriculture and other industrial uses.
Ministry of Petroleum Industries 9
Figure 1.5 Monthly Brent Price of Crude Oil January – June 2014 (US$ /bbl) (a)
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
Figure 1.6 Annual Brent Price of Crude Oil 2000-2013 (US$/bbl)
Source: Ministry of Petroleum Industries
Annual price variation of a crude oil barrel in the Brent market for a period of 14 years from 2000 to2013 is shown in theFigure1.6 above.Theannual price of a crude oil barrel has increased graduallyfromUS$29in2000toUS$97in2008.In the year 2009 the price of a crude oil barrel hascomedowntoUS$61fromthepriceintheyear2008.However,from2009ithasincreasedby an amountof US$47 to reachUS$108 in2013. When considering the year 2000 as the baseyear,thepriceincreaseby2013was281%.
Figure 1.7 below shows the monthly price behavior of a crude oil barrel in three major world petroleum markets such as Brent market, WTImarket and Platts market in the first sixmonths of 2014. The price behavior of a crude oil barrel in Brent market shows that it is always the highest through out the period than Platts and WTI market prices.
Figure 1.8 shows themonthly Platts prices of abarrelof refinedpetroleumproducts-Petrolof 92 Octane, Auto Diesel and Kerosene from January to June 2014.
Figure 1.8Monthly Platts Prices of Refined
Petroleum Products January to June 2014 (US$/bbl) (a)
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
Figure 1.9Annual Platts Prices of Refined Petroleum Products 2002-2013
(US$/bbl)
Source: Ministry of Petroleum IndustriesNote: Introduction of Petrol of 92 Octane took place in place of Petrol 90 Octane with effect from 1st
January 2014.
Figure 1.7Monthly Price of Crude Oil in
Different Markets January to June 2014 (US$/bbl) (a)
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
108.11
108.90
107.48107.76
109.54
111.80
107
108
109
110
111
112
Jan Feb Mar Apr May Jun
US$
/bbl
Brent Price Month
28.52
24.96
28.88 38.23
54.42
65.1572.47
96.85
61.49
79.51
111.26 111.65
20
30
40
50
60
70
80
90
100
110
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
US$/bbl
YearAnnual Crude Oil Price
24.45
108.56
90
95
100
105
110
115
Jan Feb Mar Apr May Jun
US$
/bbl
MonthPlatts Market Price Brent Market Price WTI Market Price
110
112
114
116
118
120
122
124
126
Jan Feb Mar Apr May Jun
US
$/bb
l
90 Octane Petrol Auto Diesel KeroseneMonth
25
35
45
55
65
75
85
95
105
115
125
135
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
US$/
bbl
Year90 Octane Petrol Auto Diesel Kerosene
10 Ministry of Petroleum Industries
Pricevariationof refinedpetroleumproducts-Petrol of 90 Octane, Auto Diesel and Kerosene which are used by majority of the consumers for the period of past 12 years (2002-2013) is shown in Figure 1.9 above. Prices of these three products have increased gradually from 2002 to 2008 while the prices have gone down in2008/2009andagainithasshownanincreasingtrend between 2009 and 2012. Prices of three products have moved very closely from 2002 to 2005.Butfrom2006,thepriceof Petrolof 90Octane has continuously been lower from other two products’ prices.
1.2 Petroleum Industry of Sri Lanka
1.2.1 Organization of the Industry
As Sri Lanka does not produce petroleum, it has to import petroleum products which are required for the various purposes of the nation. In line with the prevailing conditions, Sri Lanka’s petroleum industry operated in a free market environment to a greater extent during the British colonial times. At that time the demand for the petroleum products was limited to a few products and therefore, the management of the Sri Lanka’s petroleum industry has been somewhat simple. During prior times the petroleum products specially kerosene had been basically used for lighting purposes. Therefore, demand for petroleum products has increased due to their use in various economic sectors such as transport, electricity generation, industry (agriculture,fisheriesandotherproduction).
The Ceylon Petroleum Corporation which was established by Act No. 28 of June 1961started to handle all downstream activities such as importing, exporting, storing, refining,producing, blending, distributing, transporting, wholesaling and retailing of petroleum products. The CPC was the sole agency within the petroleum industry of the country under this new policy and structural transformation. After mid of 1990s the operation of the local petroleum industry has undergone some structural changes due to various policy decisions (eg. Liberalization) taken by the successive governments. As a result, the private sector was permitted enter the Sri Lanka’s petroleum industry in various ways such
as imports, distribution and selling of selected petroleum products.
As another significant changeof liberalization,the Ceylon Petroleum Storage Terminals Limited (CPSTL) was established in 2003 to handle the activities of storage and distribution of petroleum products. CPSTL was established under the Companies Act in order to introduce a Common User Facility for storing the petroleum products handled by both government and private sectors.
The petroleum industry of Sri Lanka has undergone several structural changes continuously due to various policy decisions taken by the successive governments from time to time. Importing, distributing and selling of majority of petroleum products were handled by theCeylonPetroleumCorporation from1960sto 1990s. After mid of 1990s, the monopoly market situation was altered due to liberalization policy which has resulted in giving opportunities to private sector to enter into several product categories. However, the Ceylon Petroleum Corporation has been able to maintain the market leadership in respect of major petroleum products while it continues to be the sole importer of crude oil and sole provider of aviation fuel.
1.2.2 Imports and Refining of Petroleum Products
The crude oil refinery at Supugaskanda wasestablished in 1969 with a capacity of 38,000barrels per stream day refining. Thereafter,refineryhasundergoneseveralmodificationsina manner to increase the capacity up to 50,000 barrels per day. However at present, the total production of the refinery contributes to only35%-40% of total requirement of petroleum products in the country per annum. Petrol, Auto Diesel, Supper Diesel, Furnace Oil, Kerosene, LPG, Jet A-1, Bitumen, Chemical Naphtha and SolventarethefinishedproductsthatcomefromtherefineryatSapugaskanda.
Table 1.7 shows the details of crude oil imported during the period from 2009 to June 2014 and Table 1.8 gives the details of locally refinedpetroleum products during the same period. Imports of crude oil has increased by 17%
Ministry of Petroleum Industries 11
Figure 1.10 Imports of Liquid Petroleum Gas 2007-2013
Source: Ministry of Petroleum IndustriesNote: Data - Central Bank of Sri Lanka (a) Provisional
with 1.7 million metric tones in 2013 compared with 2012 and parallel to that, total yield of the refinery has also increased. However, yield of petrol, diesel and kerosene has slightly decreased while furnace oil production has grown in 2013 compared with 2012.
Figure 1.11 Imports of Lubricants 2007-2013
Source : Ministry of Petroleum IndustriesNote: Data - Department of Sri Lanka Customs (Provisional)HSCodes-27101907,27101908,27101970,27101980
Year Quantity (MT’000)
C&F Value Rs. Mn
2009 2,066 111,715
2010 1,819 120,180
2011 2,070 183,056
2012 1,486 157,758
2013 1,743 182,064
Jan-June 2014 (a) 1,007 853(b)
Source: Ceylon Petroleum Corporation, Central Bank of Sri Lanka Note: (a) Provisional (b) DES Value in US$
Year Quantity (MT’000)
Value (Rs. Mn)
2009 1,895 107,740
2010 1,649 120,641
2011 1,889 183,054
2012 1,480 175,996
2013 1,556 182,604
Jan-June 2014 (a) 855 105,211
Source: Ceylon Petroleum CorporationNote: (a) Provisional
Table 1.7
Table 1.8
Imports of Crude Oil2009 – June 2014
Locally Refined Petroleum Products 2009 - June 2014
Figure 1.10 and Figure 1.11 show the total imports of Liquid Petroleum Gas (LPG) and Lubricants from 2007 to 2013.
1.2.3 Local Market Price Movements
When considering the pricing of fuels over the past in Sri Lanka, it is clear that the price revisions have taken place during a number of times, sometimes more than one time even in the same year. In view of the major petroleum products used by majority of consumers, price of Petrol of 92Octanehasbeenrevised28timeswhiletheprice of Petrol of 95 Octane has been revised 27 times within the period from 2005 to the end of September 2014. The prices of Auto Diesel and Supper Diesel have undergone revisions 24 times each within the same period. The prices of Kerosene and Industrial Kerosene have been revised 19 and 20 times respectively. The revised prices from 2005 to the end of September 2014 are shown in the Appendix.
Domestic retail prices of petroleum products
2007 2008 2009 2010 2011 2012 2013 (a)YearQuantity C&F Value
156
144 146
163
180
199 197
12
1511
16
20
28 27
5
10
15
20
25
30
100
125
150
175
200
MT’
000
Rs.B
illio
n
59.30
34.53.
43.8744.37
4.755.38
4.07
6.36
8.828.83
2
4
6
8
10
30
40
50
60
70
2007 2008 2009 2010 2011 2012 2013
MT’
000
YearQuantity CIF Value
Rs. B
illio
n
42.30
50.80
9.36
44.59
12 Ministry of Petroleum Industries
Table 1.9Retail Sale Prices of Petroleum Products
as at 31st December 2005 - 2013 (Rs./Litre)
Year
Type of Products
Petrol Diesel
Kerosene
Furnace Oil
92 Octane
(a)
95 Octane
Auto Diesel
LSD 4 Star (b)
1000 Sec
1500 Sec
3500 Sec
2005 80.00 83.00 50.00 55.30 30.50 31.40 30.30 26.00
2006 92.00 95.00 60.00 65.30 48.00 44.40 43.30 41.00
2007 117.00 120.00 75.00 80.00 68.00 52.70 51.70 46.65
2008 120.00 133.00 70.00 85.30 50.00 33.90 31.70 25.00
2009 115.00 133.00 73.00 88.30 51.00 34.90 32.70 26.00
2010 115.00 133.00 73.00 88.30 51.00 42.20 40.00 40.00
2011 137.00 155.00 84.00 106.30 71.00 52.20 50.00 50.00
2012 159.00 167.00 115.00 142.00 106.00 92.20 90.00 90.00
2013 162.00 170.00 121.00 145.00 106.00 92.20 90.00 90.00
As at 17th Sep.
2014157.00 165.00 118.00 140.00 86.00 92.20 90.00 90.00
Source: Ceylon Petroleum CorporationNote: Sec – Redwood Seconds (a) Introduction of Petrol of 92 Octane took place in place of Petrol of 90 Octane with effect from 1st January 2014 and prior to this date, data refers to Petrol of 90 Octane. (b) Introduction of Lanka Super Diesel Four Star (LSD 4 Star) of 10ppm took place in place of Super Diesel of 500ppm with effect from 22nd August 2014 and prior to this date, data refers to Lanka Super Diesel of 500ppm.
were increased in February 2013. The price hike of international oil prices during 2012 and 2013 compelled an upward price revision to reduce the financiallossesincurredbytheCeylonPetroleumCorporation. However, in consideration of the price revisions which have frequently taken place in the past and the last in September 2014, it is noteworthy that the Ministry of Petroleum Industries together with other relevant decision-making authorities has been able to retain the local prices of petroleum products at a constant level for the period of last 18 months. Theretail prices of petrol, diesel and kerosene were reduced by the government with effect from
17th September 2014 giving a concession for the fuel consumers, having seen price reductions in world oil markets. Accordingly, the domestic retail prices of Petrol (92 Octane and 95 Octane) and Lanka Super Diesel Four Star were reduced by Rs.5.00 per litre and the price of Auto Diesel was reduced by Rs.3.00 per litre. Also the price of Kerosene was reduced by Rs.20.00 per litre.
Table 1.9 shows the retail selling prices of major petroleum products as at 31st December 2005-2013 while Figure 1.12 shows the price revision trend for the three major products; Petrol of 92 Octane, Auto Diesel and Kerosene.
Ministry of Petroleum Industries 13
Figure 1.12 Retail Sale Prices of Petroleum Products as at 31st December 2005-2013
Source: Ministry of Petroleum Industries
1.2.4. Sale of Petroleum Products
Sri Lanka’s present primary energy supply is mainly based on three sources: biomass, petroleum oil and hydroelectricity. The total primary energy supply is met by 47.8% frombiomass, 43.2% from petroleum, 8.9% fromhydro and 0.1% from NCRE (Non-conventional renewable energy) sources (2007).
In line with the rapid expansion of the necessities of the population, the consumption of petroleum products not only by households and commercial units but also by other sub
sectors such as power, transport and industries has increased continuously.
Sales of Fuel to Electricity Generation
Table 1.10 shows the total installed capacity of the electricity sector and total electricity generation from2008to2013.Thetotalelectricitygenerationover the period of last six years has increased continuouslyfrom9,900GWhin2008to11,954GWh in 2013 (except in 2009). Considering the composition of electricity generation, generation from thermal power plants of both the Ceylon Electricity Board and Independent Power Plants has also continuously increased from 2008 to2012. Favorable weather conditions that prevailed during the year 2013 has helped to boost the share of hydropower generation and hence total thermal power generation has reduced to 4,772 GWh (42.7% reduction) compared with 2012. Thermal power in Sri Lanka is generated by both coal and oil. Electricity generation from theuseof oilwas59%(6,935GWh)inthetotalelectricity generation in 2012 and it was only 28%(3,304GWh)in2013.Contributionof coalbased electricity generation is 12% in both 2012 and 2013.
Table 1.10 Electricity Generations 2008-2013
Item 2008 2009 2010 2011 2012 2013 (a)
Installed Capacity (MW) 2,645 2,684 2,817 3,148 3,312 3,371
Hydro 1,345 1,379 1,382 1,401 1,584 1,623
Thermal (b) 1,285 1,290 1,390 1,696 1,638 1,649
Other 15 15 45 51 90 99
Units Generated (GWh) 9,900 9,881 10,715 11,528 11,801 11,954
Hydro 4,168 3,881 5,634 4,619 3,292 6,918
Thermal (b) 5,763 5,974 4,995 6,785 8,339 4,772
Other 9 26 86 124 170 262
Source : Central Bank of Sri LankaNote : MW – Mega Watt GWh – Giga Watt hour (a) Provisional (b) Inclusive of Independent Power Plants
80.00
162.00 157.00
30.50.
51.00
106.00
86.0050.00
73.00
121.00 118.00
0
20
40
60
80
100
120
140
160
180
Rs.
/Litr
e
Year92 Octane Petrol Kerosene Auto Diesel
2005
2006
2007
2008
2009
2010
2011
2012
2013
17.09
.2014
115.00
14 Ministry of Petroleum Industries
The Ceylon Petroleum Corporation is the sole agency to provide petroleum oil for the electricity generation by the Ceylon Electricity Board (CEB) and Independent Power Plants (IPPs). Table 1.11 shows the sales of CPC to power plants for electricity generation for the periodof sixyearsfrom2008to2013.Asshown
Table 1.11
Table 1.12
Sales to Power Plants 2008-2013
Sales to Power Plants January to June 2014 (a)
Year
Total Sales Grand Total
Ceylon Electricity Board Independent Power Plants Volume
(Litre’000)Value
(Rs.Mn)Volume (Litre’000)
Value(Rs.Mn)
Volume (Litre’000)
Value (Rs.Mn)
2008 513,941 36,565 859,653 62,786 1,373,594 99,351
2009 575,046 27,781 930,125 32,824 1,505,171 60,605
2010 364,692 17,942 808,827 33,156 1,173,519 51,098
2011 454,404 26,964 943,291 47,397 1,397,695 74,361
2012 544,615 47,839 1,095,049 78,925 1,639,664 126,764
2013 296,909 26,972 430,491 37,325 727,400 64,297
Source: Ceylon Petroleum Corporation
Month
Total Sales Grand Total
Ceylon Electricity Board Independent Power Plants Volume
(Litre’000)Value
(Rs.Mn)Volume (Litre’000)
Value(Rs.Mn)
Volume (Litre’000)
Value (Rs.Mn)
January 62,398 6,678 100,199 9,938 162,597 16,616
February 60,939 6,167 89,532 9,185 150,471 15,352
March 62,249 6,683 91,069 9,221 153,318 15,904
April 58,591 6,164 72,936 7,506 131,527 13,670
May 47,672 4,694 64,429 6,320 112,101 11,014
June 41,710 4,077 42,907 4,213 84,617 8,290
Total 333,559 34,463 461,072 46,383 794,631 80,846
Source: Ceylon Petroleum CorporationNote: (a) Provisional
in Table 1.12 CPC has sold 795 million litres of oil to the power plants for electricity generation within first six months of 2014 amounting toRs.80,846Million.CEB’sshareof totalsalestopowerplants is42%whileremainder(58%)isof the IPPs.
Ministry of Petroleum Industries 15
Table 1.13 Vehicles and Transport Statistics 2008-2013
Sales of Fuels to Transport Sector
Another salient feature of the economy is transport sector which provides a sustainable transportation system to contribute to better socio-economic development of the people while sustaining high quality of urban environment in the country. As shown by studies conducted in the recent past the road sector is the highest contributor to GHG emissions with a share of
about48%of allCO2 emitted from fossil fuel combustion. Buses, lorries and vans are the main diesel consumers.Considering the vehicle fleetand the fuel efficiency, it is estimated that thelorries are responsible for at least 50% of the total diesel consumed. Gasoline is mainly consumed by cars, motor cycles, three wheelers. Table 1.13 shows the vehicle population and some of other relevant features of transport sector.
Item 2008 2009 2010 2011 2012 2013 (a)
Class of Vehicles
Motor Cars 381,448 387,210 410,282 468,168 499,714 528,094
Motor Tricycles 406,531 443,895 529,543 667,969 766,784 850,457
Motor Cycles 1,760,600 1,896,021 2,100,832 2,354,163 2,546,447 2,715,727
Buses 81,050 81,789 84,280 88,528 91,623 93,428
Dual Purpose Vehicles 196,236 197,516 209,228 242,746 280,143 304,746
Lorries 276,622 284,847 296,692 311,510 323,776 329,648
Land Vehicles 288,506 303,790 323,454 346,648 368,540 381,578
Total 3,390,993 3,595,068 3,954,311 4,479,732 4,877,027 5,203,678
Sri Lanka Railways
Operated Kilometers (‘000) 9,219 9,545 9,790 10,030 10,600 10,940
Sri Lanka Transport Board
Operated Kilometers (‘000) 313 332 341 341 338 344
Sri Lankan Airlines
Hours Flown (hours) 67,796 54,228 62,694 74,886 93,922 95,238
Source: Departmentof MotorTraffic,andCentralBankof SriLankaNote: (a) Provisional
Bunkering Business
The structure of the petroleum market organization has undergone drastic changes since the 1990s in which government initiatives were more in line with the liberalization of the selected product categories. As a result, private sector has involved in key areas of two products namely marine fuel (bunkering) and lubricants which have been more profitable ventures to
the business partners. At present, there are 12 players in the marine fuel supply market where the two government sector institutions; Ceylon Petroleum Storage Terminals Limited and Sri Lanka Ports Authority (SLPA) are also engaging in this business. SLPA commenced its business in 2014. Sales of bunker fuel by each player for theperiodfrom2008to2013areshowninTable1.14.
16 Ministry of Petroleum Industries
Table 1.14 Bunkering Business 2008-2013
No. EntitySales (MT)
2008 2009 2010 2011 2012 2013
1 Lanka Marine Services Pvt Limited * 81,136 149,829 170,213 130,433 137,280
2 Lanka Maritime Services Pvt Limited 24,852 39,951 74,962 92,130 73,137 62,660
3 Lanka Bunkering Pvt Ltd * 1,631 1,315 1,250 4,470 1,748
4 Lanka Indian Oil Company 2,958 113,387 99,702 103,695 120,421 72,557
5 Inter Ocean Energy (Pvt) Limited 8,544 3,604 11,723 19,728 9,027 38,008
6 Moceti International (Pvt) Limited 216 893 * 584 67 3,062
7 CSC Kandia (Pvt) Ltd 377 1,376 5,113 * * *
8 Thalina Shipping (Pvt) Ltd * * * * * *
9 Maria Sripping (Pvt) Ltd * * * 22 * *
10 Mc MARINE (Pvt) Ltd * * * * * *
11 Ceylon Petroleum Storage Terminals Limited * * * * *
43,523 12 Sri Lanka Ports Authority** * * * * * *
Total 36,947 241,978 342,644 387,622 337,555 358,838
Source: Ministry of Petroleum IndustriesNote: * Not operated ** SLPA commenced bunkering business in 2014.
LP Gas Business
LP gas is used in Sri Lanka mostly for cooking purposes. LP gas consumption is varied according to the geographical area in the country. The highest consumption has been reported from the Western Province. The Ceylon Petroleum Corporation does not involve in importation of LP gas. However CPC produces LP gas as a by-productfromtheSapugaskandaoil refinery.Since CPC produces approximately 10% of country’s demand, the country largely depends onimportedLPGtofillthegrowinggapbetweendemandandlimitedproductionbytherefinery.Two companies Litro Gas Lanka Ltd and Laugfs Gas PLC are engaged in LP gas business in the
country. Moreover the CPC’s LP gas production is also sold out through these two companies. The Litro Gas Lanka Ltd came into operation in Sri Lanka from November 2010 with the change of the company’s ownership from the Shell company. Before 1995 there was a monopoly market in LP gas supply within the country. After 1995 with the entry of Laugfs Gas PLC as a competitor in the LP gas market, the monopoly situation of this business has changed. However the Litro Gas Lanka Ltd still maintains its leadership in the business. Figure 1.13 shows the total sales of LPG during the period of last six years from 2009 to 2013. It shows that consumption of LPG has been increasing gradually within this period.
Ministry of Petroleum Industries 17
194
210
228 228
239
180
190
200
210
220
230
240
2009 2010 2011 2012 2013 (a)
Qua
ntity
MT'
000
YearSales of LPG
Figure 1.13 Sales of Liquid Petroleum Gas2009-2013
Source: Ministry of Petroleum Industries Note: Data – Central Bank of Sri Lanka (a) Provisional
Sales Outlets
The CPC was the sole agency for the import of crudeoil,refinedpetroleumproductsandsupplyof the same until the Lanka Indian Oil Company (LIOC) came into operation in downstream petroleum trade in Sri Lanka in 2003. Currently, CPC and LIOC are involved in petroleum products imports and sales in the country. Table 1.15 shows number of petroleum product sales outlets owned by both CPC and LIOC. At Present, petroleum products such as Diesel, Petrol, Kerosene and Lubricants are distributed to the consumers through 1,157 CPC’s fillingstations (1,140 in 2013) established island wide andCPCpossesses a 87% share of total salesoutlets.
Table 1.15 Petroleum Products Sales Outlets – 2014 (a)
No. Province CPC Outlets LIOC Outlets Total
01 Western Province 273 68 341
02 Central Province 91 23 114
03 Southern Province 132 20 152
04 Northern Province 180 7 187
05 Eastern Province 136 11 147
06 North Western Province 156 15 171
07 North Central Province 77 5 82
08 Uva Province 45 10 55
09 Sabaragamuwa Province 67 8 75
Total 1,157 167 1,324
Source: Ceylon Petroleum Corporation and Lanka Indian Oil Company Note: (a) Provisional and data is up to end of June 2014.
The sales quantity of petrol (sales of both CPC andLIOC)was847thousandmetrictonsduring2013 and it grew by 10% compared with sales of petrol in 2012. The sales of diesel in 2013 was 1,755 thousand metric tons and it declined by 15.2%. The decline in sales of diesel was a result of lower thermal power generation. Meanwhile, the government socio-economic development policywhichiselectrificationinthecountryhas
resulted in a fall in kerosene sales by 11.9% to 126thousandmetrictonsduring2013.
Although the local petroleum industry had undergone several structural changes from 1990s, CPC has been able to maintain its market leadership (about 85%) on several petroleumproducts such as petrol and diesel while it maintains the monopoly on kerosene and aviation fuel supply.
194
210
228 228
239
180
190
200
210
220
230
240
2009 2010 2011 2012 2013 (a)
Qua
ntity
MT'
000
YearSales of LPG
18 Ministry of Petroleum Industries
Ministry of Petroleum Industries 19
SECTION II
PERFORMANCE
20 Ministry of Petroleum Industries
Ministry of Petroleum Industries 21
2. PERFORMANCE
2.1 Formulation of Policies, Programs and Projects
The Ministry of Petroleum Industries as the policy making and the chief accounting body of the two entities namely the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Ltd plays an important role in formulation and implementation of all relevant policies, guidelines and development projects in achieving the set goals and targets. Accordingly, the followings are the main policy decisions taken and projects formulated in co-operation with the two agencies during the period from year 2013 to June 2014.
a) Oil Procurements
Approximately US$ 5,000 million is spent annually for the importation of crude oil and refined petroleum products in a normal yearto meet the country’s oil demand. This amount accounts for 25% of total importation cost of the country. Since the Ceylon Petroleum Corporation (CPC) is the largest petroleum products importer to the country, the CPC has to seek ways and means which will help to reduce the import cost of the petroleum products and the impact on exchange associated with the importation.
In this context, every possible effort was made to minimizetheimpactof fluctuationinthepricesof crude oil and refined petroleum productsduringtheperiodof last18months.TheCPCunder the guidance of the Ministry with the approval of Cabinet of Ministers has taken steps to increase the oil procurements based on long term contracts since the world oil market prices face continued variations and sometimes high premiums have to be paid for the spot purchases. The uninterrupted fuel supply will also be ensured through the procurements based on long term contracts. Therefore, long term agreements have been signed with several companies to procure the petroleum products. Measures were also taken to maintain adequate stocklevelstoavoid/minimizetherequirementsfor spot purchases. On this basis, CPC has been
able to curtail its procurement expenditure on crude oil and refined petroleum products byobtaining very attractive premiums.
b) Upgrading of Fuel Quality Standards
The Ceylon Petroleum Corporation was compelled to improve the quality of major fuels such as petrol and diesel since it contributes to a lot towards the reduction of harmful emissions causing environmental pollution and serious health hazards which have been reported to have costly effects both economically and socially on the society. Accordingly, CPC was highly successful in carrying out its product quality enhancement program where it has been able to complete the fuel specifications upgrading andquality control and quality assurance as planned. Many additional parameters and test methods were introduced in the exercise to bring them on par with the internationally adopted practices.
In this process, Petrol of 92 Octane in place of Petrol of 90 Octane was introduced with effect from 1st January 2014. Also Lanka Super Diesel Four Star (Diesel of 10ppm) in place of Super Diesel of 500ppm was introduced with effect from 22nd August 2014. These two initiatives were noteworthy achievements of the Ministry and its two agencies to ensure supply of quality fuel which directly help sustain the nation economically and environmentally.
c) Lubricant Business
The Ceylon Petroleum Corporation (CPC) had a monopoly in the lubricant business in Sri Lanka until that business was sold to the Lanka Lubricants Ltd (Caltex) in 1994 with the exclusive right for 5 years. After the five-yearperiod the lubricant business was liberalized and several competitors entered the market. CPC also decided to re-enter the market with the intention of creating a healthy competition.
Through the process of calling for the expression of interest, Hyrax Oil SDN BHD, Malaysia was selected for lubricant business and an agreement was signed to carry out the lubricant business
22 Ministry of Petroleum Industries
forfiveyearscommencing1stJuly2008.Asperthis agreement, Hyrax Oil SDN BHD, Malaysia would manufacture a range of lubricant products in Malaysia under the brand name “Hyrax-Ceypetco” and CPC shall purchase the products from Hyrax and distribute them in Sri Lanka on competitive prices. Presently, CPC has the 2nd largest lubricant business under the trade name of the “Hyrax-Ceypetco” and it has become a profitable business for CPC. Therefore, theagreement has been extended by another one year till 30th June 2014.
In the meantime, a proposal has been submitted by the Hyrax Oil SDN BHD, Malaysia to establish a Lubricant Blending Plant in Sri Lanka to cater to the local market as well as to the export market. Having considered the local value addition, employment generation within the country and foreign exchange earnings, approval was granted by the Board of Directors of CPC for this project. Presently, the actions are being taken to implement the project with a suitable implementing mechanism.
Box 2.1
Introduction of “92 Octane Petrol”
Ceylon Petroleum Corporation under the guidance of the Ministry of Petroleum Industries has realized the necessity to review the adequacy of the Research Octane Number (RON) of the regular 90 RON Gasoline (Petrol) with regard to its suitability for the petrol vehicles in the country in the present context. The CPC has analyzed the specificationsof the appropriateGasolinegrades to be marketed in Sri Lanka compared with the international standards in this regard.TheCPC’sTechnical SpecificationCommittee appointed for updating of fuel specificationshasconsidered theGasolinequality requirements of the petrol vehicles in the country along with the nature of the fuel supply chain in the region and has agreed that it is more appropriate to replace 90 RON Gasoline with 92 RON Gasoline.
CPC has also recognized that its refinerywould be able to comply with 92 RON
Box 2.2
Introduction of “Lanka Super Diesel Four Star”
A requirement has arisen for introducing a high quality fuel for the modern diesel engine vehicles as this ensures the protection and durability of electronic sensors and other sophisticated components of the vehicles. In this context, the Ministry of Petroleum Industries together with two agencies coming under its purview; the
Gasoline specifications in its productionand blending processes. It has also been noted the following advantages of using 92 RON Gasoline in the local market.
92 RON Gasoline is available in the international market. Hence, with the introduction of 92 RON, it eliminates the blending 92 RON with other substandard fuels in order to produce 90 RON Gasoline.
Improvement of the vehicle engine performance resulting in fuel saving to some extent.
Reduction of engine knocking, making the engines to run smoother with improved acceleration.
Reduction of engine wear and overheating, minimizing the damaging effects of engine knocking due to low Octane (RON), thus helping to prolong life of engine parts and its life.
Helping to reduce vehicle emissions due to improved combustion which will result in reduced air pollution.
The Ministry of Petroleum Industries together with the Ceylon Petroleum Corporation introduced 92 RON Gasoline in place of 90 RON Gasoline in the local market with effect from 1st January 2014 successfully with the approval of the Cabinet of Ministers. Accordingly, the other market operator, the Lanka Indian Oil Company (LIOC) has also introduced the same.
Ministry of Petroleum Industries 23
Ceylon Petroleum Corporation (CPC) and the Ceylon Petroleum Storage Terminals Limited (CPSTL) has been working towards introducing petroleum products with a view to catering to the requirements of themodernvehiclefleetinSriLanka.Inline with the same objectives, the Ministry introduced “Petrol of Octane 92” which is a high quality fuel product with effect from 1st January 2014.
Compared with other countries in the world, it is recognized that the Lanka Supper Diesel in which the Sulphur content is in high value of 500 ppm at present is not a suitable fuel for the modern (high-tech) diesel engine vehicles available in the country. It will damage the vehicles’ engine combustion system and release harmful diesel exhaust emissions causing environmental pollution.
As a solution for this issue CPC and CPSTL under the guidance of the Ministry of Petroleum Industries had studied fuel specifications and indicators which meetthe international fuel quality standards. As a result of these experiments recognizing “Lanka Supper Diesel Four Star” which contains a less amount of Sulphur from 50ppm to 10 ppm is the suitable grade of fuel, it was decided to distribute Lanka Supper Diesel Four Star which contains 10 ppm Sulphur island wide in place of Lanka Supper Diesel which contains 500 ppm available in the local market.
This Lanka Super Diesel Four Star is a high standard diesel type and any risk associated with continuous supply may not be arisen as this product is plenty in the Asian market. Therefore this Lanka Super Diesel Four Star was introduced in place of existing “Lanka Super Diesel” in the local market with effect from 22nd August 2014.
Although this new diesel type is graded as a high quality fuel, the CPC sold to the consumers at the same price of Rs. 145.00 per litre until the price revision took place with effect from 17th September 2014. Currently, it is sold at Rs. 140.00 per litre.
The Ministry and two agencies (CPC and
CPSTL) has taken actions to bring the benefitstothewholesocietythroughthesekinds of initiatives.
Average consumption of Lanka Supper Diesel is 80MTperday atpresent and itis expected to increase this market share of Lanka Supper Diesel Four Star (in place of Lanka Auto Diesel) to a 150 MT per day through a broad marketing campaign launched island wide.
Benefits of Lanka Super Diesel Four Star Sulphur reduction in diesel fuels
used in modern vehicles is necessary to preserve the proper functioning of the advanced emissions control systems, the electronic sensors and other sophisticated instruments in the combustion system of new diesel engines.
Increasing durability of the vehicle engines through a smooth operation.
Helping to minimize maintenance cost due to a cleaner burning with fewer emissions.
Contributing towards the reduction of soot and Nitrogen Oxides by almost 90% and it will help reduce health problems.
Helping to reduce ambient air pollution in the environment due to reduction of emissions.
d) SOREM Project
TheexistingSapugaskandaOilRefinerybuiltin1969 iscurrentlycontributingapproximately to35%-40% of the national demand for petroleum products through refining the imported crudeoil. In comparison with the prices of imported refined petroleum products with those of thelocallyproducedalongwithotherbenefits,thereis a huge advantage in producing the petroleum refined products locally as it enhances energysecurity of the country while helping to boost the economy and also to reduce quality issues
24 Ministry of Petroleum Industries
associated with imported refined products. Itwill also serve in the best interest of the country relieving partially of the burden on the economy imposedbythehighcoston importingrefinedoil. Hence, it will be highly economically viable. However, it needs modernization and expansion of the existing CPC refinery at Sapugaskandawhich is currently a basic Hydroskimming type refinery without any heavy product upgradingunits such as Hydrocrackers which would help to enhance its operational profit marginswhile increasing theprocessingflexibilitydueto the possible widening of its crude range and enabling to process heavier crudes which are less expensive. This will alleviate its lower margin of operation and the limitation of refiningonly carton types of crude oil such as Iranian Light, Saudi Light and Murban crude oil. This modernization is also very important and urgent to increase itsproductionefficiency inviewof issues such as United States’ sanctions against Iran that resulted in CPC to seek alternative types of crude oil from other countries.
e) Cross Country Pipeline Project
The Dolphin pier at the Colombo Port is equipped with loading arms and other facilities to unload imported petroleum products like Diesel, Petrol, Kerosene, Aviation Turbine Fuel (Jet A-1) and Furnace oil and to transport them through the existing three pipelines to the Kolonnawa Terminal which are about 40-70 years old and are in need of immediate replacement (or rehabilitation) for a continuous and uninterrupted operation in the future. These pipelines have been built in 1940s for the transport of petroleum products from the Colombo port to the Kolonnawa Installation out of which two pipelines have already been abandoned many years back due to the inability of carrying out maintenance and repairs as a result of the illegal encroachments on the pipeline terrace by squatters.
Twomorepipelineshavebeenconstructedin1969along with the construction of Sapugaskanda OilRefinery.Theoriginal70yearsoldpipelineand the other two old pipelines which are about 43 years old are handling the total imports of finished petroleum products and crude oil
whereas the design life span of such petroleum pipelines are only 25 years.
Renovation and modernization of these pipelines have been a very urgent need as a large quantity of the national requirement of the petroleum products is being carried into Kolonnawa fuel storage terminal through these deteriorated pipelines.
The Ministry coordinates all activities of the project with CPC and CPSTL. Almost all the preliminary steps of this project such as preliminary Topographical Surveys, Geographical Surveys, Initial Environmental Examination, identification of most suitable (feasible) pipelaying route, provision for compensation and remedies to the affected parties have been completed.Nowit is in theprocessof findingfunds and selecting a suitable contractor to implement the said project in time. This Ministry has taken several actions and policy decisions to implement this project. However, some social and physical problems have arisen at the same time eg: ejection of squatters takes a considerable time period to work out practicable solutions.
Considering many alternatives, it has been decided that the most appropriate method for speedy implementationistoselectatechnicallyqualified,financiallysoundfeasibleunsolicited/standaloneproject proposal, through an evaluation process of the Standing Cabinet Appointed Review Committee (SCARC) and Cabinet Appointed Negotiation Committee (CANC).
Expected Benefits:
Fulfill national requirement of petroleumproducts
Efficient transportation of petroleumproducts from Colombo port to Kolonnawa
Maintain the quality of imported petroleum products until they reach end consumers
Preparation for future demand and maintain continuous supply
Reduce stock losses and reduce financiallosses to CPC and CPSTL
Reduce high maintenance cost of deteriorated pipelines
Ministry of Petroleum Industries 25
f) Project on Construction of Storage Tanks
With the increase of 5% of annual fuel demand in Sri Lanka, there should be storage facilities developed well for each petroleum product. Hence, the CPSTL as the main responsible agency for storing and distributing fuels island wide has taken initiatives to increase fuel storage capacity of 100,000 metric tons at the premises of Kolonnawa and Muthurajawela Terminals. The main objective of the project is to avail sufficient storage capacity to accommodateimportedcargoesandrefineryproductstomeetcountry’s fuel requirement by maintaining a 30 day stock of products for the country at any given time.
Expected Benefits:
Uninterrupted fuel supply throughout the country
Sufficient storage to accommodateshipments to maintain country’s fuel requirement and avert demurrage payments
Meet any contingencies and maintain sufficient reserves of all products atsustainable levels and reduce risk of unexpected situation that could arise in the country
g) Project on Fuel Hydrant System at BIA
The Ministry with the Ceylon Petroleum Corporation has taken necessary steps to enhance the aviation fuel storage capacities under the Bandaranayke International Airport (BIA) Phase II, Stage 2 Development Project. The construction of additional storage facilities, an additional Fuel Hydrant System and modifications to the existing fuel hydrantsystem at Bandaranayake International Airport are the major components of this project. The total estimated cost of this project as per the engineering estimate is around US $ 45 million (2013) and it has been planned to be carried out by the Ceylon Petroleum Corporation under the purview of this Ministry in collaboration with the Airport and Aviation Services Limited (AASL).
h) Project on SPBM
The Single Point Bouy Mooring (SPBM) facility isusedforunloadingcrudeoil for therefineryat Sapugaskanda had been installed in the year 1987andhasbeeninoperationforover25years.This crude oil buoy is located in the sea 9.2 km away from the Port of Colombo. The Product Distribution Unit (PDU) of this buoy has to be overhauled in every 5 years’ operation. Hence, an integrated assessment was carried out by an independent party (M/sLYEAsia Pacific SdnBhd, Malaysia) within the weather window in firstquarterof 2014toassesstheconditionpriorto the next overhaul in 2015.
i) Project on Improvements to Dolphin Pier and Pipeline Facility
The Dolphin Pier loading/discharginginfrastructure is the only facility available to discharge importedrefinedpetroleumproductsto the Kolonnawa oil storage terminal of the Ceylon Petroleum Storage Terminal Limited (CPSTL) which is the Common User Facility (CUF) available for petroleum companies in Sri Lanka. This facility has not undergone a comprehensive assessment for repair and maintenance for a long period of time. Any failure to the facility due to lack of repair and maintenance will have a direct impact on the uninterrupted fuel supply to the country as the capacities and facilities available in other two alternative terminals (Muthurajawela CPSTL Terminal and China Bay LIOC Terminal) are not sufficient to handle the required quantitiesof imported petroleum products. This project needs to be implemented parallel to the projects on construction of two new pipelines from Colombo Port Tunnel Gate to Kolonnawa Terminal and Terminal Modifications atKolonnawa (Cross Country Pipeline Project) in order to avoid the bottlenecks in unloading the fuel. In this context, this project has been identifiedasapriorityprojecttobeimplementednext year.
j) Project on new Bulk Depot in Northern Province.
The bulk depot in Northern Province is located in the premises of Cement Corporation at
26 Ministry of Petroleum Industries
Kankasanthurai. Cement Corporation has requested CPSTL to move out from their premises at the end of year 2011. With a view to ensure the uninterrupted fuel supply to the consumers in Northern Province, establishment of a new bulk depot somewhere in Northern ProvincehasbeenidentifiedbytheCPSTLasapriority project.
A land block of 40 acres adjacent to A-9 road situated inPallaihasbeen identifiedbyCPSTLfor this purpose and it has been recognized that this land is currently owned by Janatha Estates Development Board (JEDB). The process of land valuation is in progress by the Department of Valuation in order to lease out the 40 acre land on a longterm basis to the Ceylon Petroleum Storage Terminals Limited.
Expected Benefits:
Uninterrupted supply of fuel in the Northern Province
Maintain required environment and safety conditions
Provide continuous supply of fuel for industrial sector which shows rapid growth after the war
Reduce fuel transportation cost by using railway
Customer satisfaction by providing quality products on continuous basis
k) Project on Development of Provincial Bulk Depots
The bulk depot concept had been established during the British time based on rail transport to different provinces. All those rail side depots had been fed by rail. Most of the strategic constraints considered have changed with time from 1935 to date and the present requirements, concepts, and strategies vary from the inception. Present day road tank trucks can easily perform 200 km at a stretch and return within 10-12 hours or less. Feeding retail outlets from regional installations could be performed to a larger extent in this manner thereby reducing double handling of products to a greater extent. Also, the prevailing system increases overheads on electricity, water,
transport and excessive employment at such depots. Strategic locations for depots are essential to suit the present day requirement such as the new development projects in Southern Province especially the establishment of industrial zones, enhancement of tourism industry, rapid development expected in Northern and Eastern Provinces and establishment of new thermal power generation units in the country. In order to overcome the present day requirements and maintain uninterrupted supply of petroleum products with synergy and least involvement conforming to the accepted codes and standards within the country, it is required to launch a properly planned major infrastructure development program at regional bulk depots.
Expected Benefits:
Enhancethestorageandfillingfacilities Improvementstofiresafety Minimize fuel transport cost and
transportation time
2.2 Imports and Refining
2.2.1 Refined Petroleum Products
CPC was forced to continue making spot purchases despite several long term contracts entered with major oil suppliers on Government to Government basis. Some of these spot purchases were due to US sanctions against Iran which resulted in non availability of the correct crudeoiltypeforprocessingbytherefinery.Spotpurchases sometimes compel CPC to pay higher premiums on imports especially due to short notices on laycans and small size of the total consignments. In spite of this, CPC has been able to enter into/extendmany termcontractsbeneficial to theCorporation.However,higherrain fall received in the year 2013 drastically reduced the fuel oil requirement for the power generation resulting in considerable drop in fuel oilimportswhichyieldedhigheconomicbenefitstotheCorporation.Table2.1showstherefinedpetroleum products imported by CPC from 2012 to end of June 2014.
Ministry of Petroleum Industries 27
Table 2.1 CPC’s Imports of Refined Petroleum Products 2012 - June 2014 (MT’000)
Products 2012 2013 January to June 2014 (a)
Petrol – 90 Octane 382 355 -
Petrol – 92 Octane (b) - 50 196
Petrol – 95 octane 30 41 25
Auto Diesel 1,509 1,031 390
Super Diesel 16 29 318
Lanka Super Diesel Four Star (10ppm) ( c) - - 8
Jet A-1 271 296 140
Kerosene (d) 7 - -
HighSulphurFuelOil(180CST)(e) 229 - 16
LowSulphurFuelOil(180CST) 305 69 104
Total 2,749 1,871 1,197Source: Ceylon Petroleum Corporation Note: (a) Provisional (b) Petrol of 92 Octane was imported at the end of 2013 to distribute it with effect from 01.01.2014 in place of 90 Octane Petrol Island wide. ( c) Diesel of 10ppm was imported at the end of second quarter of 2014 to introduce it as Lanka Super Diesel Four Star with effect from 22nd August 2014 in place of Super Diesel island wide. (d) There were no imports during 2013 - June 2014 (e) There were no imports during 2013
2.2.2 Crude Oil
CPC faced a crisis situation in mid of 2012 as a result of USA sanctions on Iran compelling CPC to look for an alternative crude oil to replace Iranian Light for which the refinerywasfine tuned to runeconomicallyandwithafewer problems. Hence, this development was a formidable challenge which forced refinerytostudyalargenumberof crudeassaystofindan alternative crude oil mix suitable for the particular configuration of the Sapugaskandarefinery.Eventuallyamixof 80%Murbanand20% Oman Export Blend was found to be an economical and practical crude mix. However CPC has to pay a relatively high premium for Murban crude oil. Table 2.2 shows crude oil imported during the period from 2012 to end of June 2014.
Table 2.2 Imports of Crude Oil 2012 - June 2014 (MT’000)
Type 2012 2013January to June 2014 (a)
Iranian Light 697.41 * *
Arabian Light 617.12 * *
Light Crude Oil * 221.65 *
Murban Crude Oil 86.29 618.53 819.44
Oman Export Blend 85.90 903.31 187.98
Total 1,486.72 1,743.49 1,007.42
Source: Ceylon Petroleum Corporation Note: (a) Provisional *No imports during the respective year
28 Ministry of Petroleum Industries
2.2.3 Agrochemicals
CPC has been able to supply many agrochemical products to the agriculture and the plantation sectors at competitive prices thus helping to regulate the prices of agrochemicals in the local market. Limited number of bulk suppliers with
ProductsQuantity
Value (US$) Value - Rs Million(Local Purchases)Litre kg
2012
Glyphosate36SL 96,000 - 232,640 -
3-4DPA36%EC 32,000 - 145,600 -
Chlorpyrifos 40% EC 15,000 - 64,950 -
Carbofuran 75% WP - 5,000 - 11.75
Carbaryl85%WP - 3,000 29,850 -
Diuron80%WP - 10,000 - 11.09
Acephate 75% SP - 3,000 25,500 -
Total-2012 143,000 21,000 498,540 22.84
2013
Mancozeb80%WP - 28,000 77,700 -
Phenthoate 50% EC 16,000 - 120,800 -
Profenofos 50% EC 23,000 - 134,190 -
MCPA 40% (Na+K) SALT 3,000 - - 1.53
Glyphosate36%SL 64,000 - 203,200 -
Diuron80% - 2,400 153,120 -
Acephate 75% - 5,000 42,000 -
BPMC 50% 8,000 - 34,000 -
MCPA60% 5,000 - - 3.65
Total-2013 119,000 35,400 765,010 5.18Source: Ceylon Petroleum Corporation
Table 2.3 CPC’s Imports of Agrochemicals 2012-2013
some of which being market competitors had been a major challenge to CPC in delivering products in time at competitive prices. Table 2.3 shows CPC’s imports of agrochemicals in 2012 and 2013 and Table 2.4 shows CPC’s imports of agrochemicalswithin theperiodof first sixmonths of 2014.
Ministry of Petroleum Industries 29
ProductsQuantity
Value (US$)Value
Rs. Million (Local purchase)Litre kg
Acephate 75% - 7,200 58,680 -
Diuron80% - 28,000 154,000 -
Mancozeb80% - 14,000 38,500 -
M.C.P.A.60% 10,000 - - 6.46
Total 10,000 49,200 251,180 6.46
Source: Ceylon Petroleum CorporationNote: (a) Provisional
Table 2.4 CPC’s Imports of Agrochemicals January – June 2014 (a)
Grade Shipment No. Quantity (MT) (US$/MT)* Country of Origin
80/100
AS/01/2013 2,000 554.00
UAE
AS/03/2013 1,000 605.00
AS/07/2013 3,000 614.00
AS/09/2013 5,000 605.50
AS/11/2013 3,000 610.50
AS/13/2013 3,000 579.00
AS/16/2013 5,000 567.00
60/70
AS/02/2013 5,000 554.00
AS/04/2013 5,000 602.90
AS/08/2013 5.000 608.50
AS/12/2013 10,000 601.50
AS/10/2013 5,000 604.50
AS/14/2013 3,000 579.00
AS/15/2013 3,000 567.00
Source: Ceylon Petroleum CorporationNote: *QuotedCIFColomboPrice
Table 2.5 CPC’s Imports of Bitumen - 2013
2.2.4 Bitumen
Bitumen trade had been a highly profitablebusiness for the CPC for several years in the past. This also got affected by the imposition of US sanctions on Iran since Iran was a major
supplier of bitumen in the region. CPC had facedescalatedpricesalongwithdifficultiesof procurement as CPC was very strict and vigilant in complying with US sanctions. Table 2.5 and 2.6indicatethebitumenimportsof CPCduringthe period from 2013 to the end of June 2014.
30 Ministry of Petroleum Industries
Residential/ Commercial/ Agriculture
11%
Electricity Generation
6%Transportation
57%
Industry 26%
Grade Shipment No. Quantity (MT) (US$/MT)* Country of Origin
60/70
AS/01/2014 6,000 569.00 U.A.E
AS/02/2014 6,000 608.00 Malaysia
AS/03/2014 5,000 85.56** U.A.E
Source: Ceylon Petroleum Corporation Note: (a) Provisional *QuotedCIFColomboPrice ** SLR per kg
Table 2.6 CPC’s Imports of Bitumen January – June 2014 (a)
2.2.5 Refinery Production
CPC refinery at Sapugaskanda contributesto approximately one third of petroleum oil requirementof thecountry.Refineryoperationsuffered a minor setback in the second quarter of 2014 in which it was forced to shut down for four weeks due to non-availability of crude oil as a result of the failure of the under buoy hose on the crude oil buoy. Figure 2.1 shows the percentage of refinery production during theperiod from January to June 2014. Total output of therefinerythroughprocessingof 901,438MTcrudeoilwithinthisperiodis855,407MT.Outof this total output, furnace oil has been produced largely (38%) while second largest productionis diesel (30%). There is no bitumen produced duringtheperiodof firsthalf of 2014throughtherefineryproduction.
Figure 2.1 Refinery Production (Percentage) January – June 2014 (a)
Source: Ministry of Petroleum IndustriesNote: (a) Provisional Data – Ceylon Petroleum Corporation
2.3 Storage, Distribution and Sale
The Ceylon Petroleum Storage Terminals Limited (CPSTL) was established in 2003 under the Companies Act to engage in storing and distributing of the fuel island wide. The shares of the company have been allocated to CPC and LIOCas2/3and1/3respectively.
Two major storage terminals of the CPSTL are located at Kolonnawa and Muthurajawela. Kolonnawa installation handles 12 petroleum products i.e gasoline of 95 octane, gasoline of 92 octane, super diesel, auto diesel, naphtha, aviation gasoline of 100 octane, jet fuel, illuminating kerosene, industrial kerosene, special boiling pint products (SBP), fuel oil 800 Sec, and fueloil (H/S)1500sec.with itsstoragecapacityof 232,072 MT. Muthurajawela installation handles 04 petroleum products i.e. gasoline of 92 octane, autodiesel,keroseneandfueloil(L/S)1500Sec.withitsstoragecapacityof 212,487MT.
CPSTL handles the island wide distribution of bulk petroleum products to dealers and consumers by road, rail and other transport means where necessary. 11 bulk depots are located near the railway stations and are fed by rails where the balance of requirement is fed through road bridges (CPSTL’s own and hired). Aviation fuel is delivered to Katunayaka BIA daily by using three sets of trains and the otherairfields(MattalaRajapaksaInternationalAirport and Ratmalana Airport) are fed by road bridges.
All bulk depots are categorized into two grades based on volume and future expansion capability.
Petrol9.25%
Diesel30.07%
Furnace Oil 37.59%
Kerosene4.59%
Naphtha7.43%
LPG 1.66% Aviation Fuel 9.26%
SBP0.15%
Ministry of Petroleum Industries 31
Table 2.7 CPSTL’s Sales - 2013 (KL)
Product Kolonnawa Muthurajawela All Depots
Petrol - 90 Octane (a) 327,936 212,392 245,294
Petrol - 95 Octane 56,255 * *
Industrial Kerosene 18,279 * *
Auto Diesel 545,423 511,724 570,070
Super Diesel 27,423 * 2,169
Kerosene 27,523 44,986 53,513
Chemical Naphtha 104,019 * *
FuelOil800Sec. 56,911 * 1,492
Fuel Oil 1500 Sec.(High Sulphur) 302,724 * *
Fuel 1500 Oil Sec.(Low Sulphur) * 101,060 *
Avgas - Bulk 1 * *
Jet A - 1 5,322 * *
Solvents (SBP) 3,730 * *
X Premium Euro 3 * * *
X Mile * * *
Total 1,475,546 870,162 872,536
Percentage of Total Sales 46 27 27
Grand Total 3,218,243
Source: Ceylon Petroleum Storage Terminal Limited (CPSTL) Note: (a) Introduction of Petrol of 92 Octane took place in place of Petrol of 90 Octane with effect from 1st January 2014. * No sales from respective locations
Grade I : Peradeniya, Galle, Kurunegala, Batticaloa, Anuradhapura, Badulla, & Kankasanthurai
Grade II : Kotagala, Haputale, Matara, Sarasavi Uyana
CPSTL’s sales from respective locations in 2013
andfirstsixmonthsof 2014aregiveninTable2.7and2.8respectively.Totalsalesof petroleumproducts by CPSTL’s locations were 3.22 million kilolitres during 2013. Sales from Kolonnawa installation was 46% out of total sales of CPSTL and 27% was from other two locations- Muthurajawela and all depots each.
32 Ministry of Petroleum Industries
Product Kolonnawa Muthurajawela All Depots
Petrol - 92 Octane 168,881 116,682 168,861
Petrol - 95 Octane 33,043 * *
Industrial Kerosene 9,428 * *
Auto Diesel 458,489 282,797 276,600
Super Diesel (b) 17,933 * 1,324
Kerosene 12,385 19,906 24,671
Chemical Naphtha 89,985 * *
FuelOil800Sec. 26,069 * *
Fuel Oil 1500 Sec.(High Sulphur) 237,135 * *
Fuel 1500 Oil Sec.(Low Sulphur) 350 101,663 *
Avgas - Bulk 0.32 * *
Jet A-1 2,991 * *
Solvents (SBP) 1,877 * *
X Premium Euro 3 9,656 * *
X Mile 3,986 1,043 2,234
Total 1,072,208 522,091 473,690
Percentage of Total Sales 52 25 23
Grand Total 2,067,989
Source: Ceylon Petroleum Storage Terminal Limited (CPSTL)Note: (a) Provisional (b) Introduction of Lanka Super Diesel Four Star took place in place of Super Diesel with effect from 22nd August 2014. * No sales from respective locations
Table 2.8 CPSTL’s Sales January – June 2014 (KL) (a)
CPC’ssalesin2013andfirstsixmonthsof 2014are given in Table 2.9 and 2.10 respectively. Total sales of CPC excluding sales of marine fuel and
lubricants declined by 20% in 2013 compared with sales of previous year (2012).
Ministry of Petroleum Industries 33
ProductRetail Sales Major Consumer Sales Total Sales
2012 2013 (a) 2102 2013 (a) 2012 2013 (a)Petrol - 90 Octane (b) 583.80 592.77 4.90 4.80 588.70 597.57Petrol - 95 Octane 26.67 38.45 3.94 4.23 30.61 42.68Auto Diesel 1,307.20 1,280.91 622.91 278.03 1,930.11 1,558.94Super Diesel 18.02 23.02 4.09 1.86 22.11 24.88Kerosene 124.53 111.08 1.11 0.72 125.64 111.80Industrial Kerosene 1.11 1.29 16.09 13.03 17.20 14.32FurnaceOil800Sec. - - 62.07 60.47 62.07 60.47FurnaceOil1500Sec.(H/S) - - 631.80 373.58 631.80 373.58FurnaceOil1500Sec.(L/S) - - 276.40 90.81 276.40 90.81Furnace Oil 3500 Sec. - - 215.72 149.39 215.72 149.39Naphtha - - 61.86 71.74 61.86 71.74LPG - - 17.41 22.15 17.41 22.15Avgas - - 0.16 0.14 0.16 0.14Jet A-1 - - 325.92 359.60 325.92 359.60Asphalt80/100 - - 24.51 13.44 24.51 13.44Asphalt60/70 - - 67.97 35.08 67.97 35.08Solvents (SBP) - - 3.14 2.54 3.14 2.54Total Sales 2,061.33 2,047.52 2,340.00 1,481.61 4,401.33 3,529.13
Source: Ceylon Petroleum CorporationNote: (a) Provisional (b) Introduction of Petrol of 92 Octane took place in place of Petrol of 90 Octane with effect from 1st January 2014.
Table 2.9
Table 2.10
CPC Sales 2012-2013(MT’000)
CPC Sales January to June 2014 (MT’ 000) (a)
Product Retail Sales Major Consumer Sales Total
Petrol - 92 Octane 310.86 - 310.86Petrol - 95 Octane 22.93 2.11 25.04Auto Diesel 611.00 337.79 948.79Super Diesel (b) 14.08 0.31 14.40Kerosene 52.71 0.34 53.02Industrial Kerosene 0.65 6.73 7.38FurnaceOil800Sec. - 25.23 25.23FurnaceOil1500Sec.(H/S) - 252.31 252.31FurnaceOil1500Sec.(L/S) - 96.70 96.70Furnace Oil 3500 Sec. - 110.19 110.19Naphtha - 57.52 57.52LPG - 14.38 14.38Avgas - 0.09 0.09Jet A-1 - 193.07 193.07Asphalt80/100 - 4.79 4.79Asphalt60/70 - 8.72 8.72Solvents (SBP) - 1.27 1.27Total Sales 1,012.23 1,115.55 2,123.78
Source: Ceylon Petroleum CorporationNote: (a) Provisional (b) Introduction of Lanka Super Diesel Four Star took place in place of Super Diesel with effect from 22nd August 2014.
34 Ministry of Petroleum Industries
Fuel Storage facility and Hydrant System outside the apron area was commenced in May 2013 by the main contractor M/s Amana PipelineConstruction LLC after the inaugural opening of the MRIA. Construction of three Jet A-1 storage tanks with one million litre each capacity with other associated facilities and fuel hydrant system outside the apron area was completed. The operations of fuel hydrant system outside the apron area and fuel storage tank farm were ceremonially opened by H.E. the President on 22nd May 2014. Commissioning and testing of the whole system was carried out by M/sGermanischer Lioyd (Pvt) Ltd after completion of the construction.
b) Lubricating Oil Drums Storage
A building for a warehouse for lubricating oil drumsandanofficetomanagewasdesignedatMuthurajawela and contract for the construction was awarded at a total estimated cost of Rs. 60million. This aims at providing a protectedstorage facility for the lubricating drums and streamlines the operation.
c) Bulk Products Storage Facility
SeveralstepshavebeentakenbyCPCrefinerytoeither newly construct storage tanks or refurbish the existing tanks in order to enhance the storage capacitiesof refinedandintermediateproducts.
Inviewof this,anadditionaltankof 1,600MTcapacitytostorebitumen/fueloilwasdesignedand commenced its construction work while material were ordered to construct a Jet A-1 tankof 1,280MTcapacity.Further,anextensiverefurbishment was carried out replacing the entirebottomandthefloatingroof of thecrudeoil storage tankN0.01at therefineryata totalcost of Rs. 170 million.
d) Petrol Filling Facility
Petrol filling gantry facility with a sufficientstorage capacity was initiated to enhance the operational profitability of the SapugaskandaTerminal while reducing stock losses. In this context, two existing Diesel storage tanks were modifiedincorporatingfloatingpans.Necessarygantry loading arms with pumps, instrumentation
2.4 Infrastructure Development
2.4.1 Ceylon Petroleum Corporation
a) Fuel Hydrant System at MRIA
The Ceylon Petroleum Corporation as the main responsible agency for supplying aviation fuel under safety standards has commenced this project in line with the construction of the second international airport at Mattala. The project consists of following three major components.
I. Construction of Fuel Hydrant System within the apron area
II. Construction of Fuel Storage Facility and Fuel Hydrant System outside the apron area.
III. Purchase of mobile equipment, supply of staff quarters and facilities
The project has commenced its implementation from January 2012 with a total estimated cost of Rs. 5,400 million. Three contracts were awarded to carry out the project activities as follows.
Package 1 : Construction of Fuel Hydrant Systemwithintheapronarea–ByM/sChinaHarbor Engineering Company
Package 2: Construction of Storage Facility and Fuel Hydrant System Outside the apron area–ByM/sAmanaPipelineConstructionLLC
Package 3: Third Party Inspection and Certification–ByM/sGermanischerLioyd(Pvt) Ltd
Package 1 and 2 among the three are the work packages awarded. Package 1: Construction of Fuel Hydrant System within the apron area undertakenbythecontractorM/sChinaHarborEngineering Company (CHEC) was completed before the inaugural opening of the Mattala RajapaksaInternationalAirport(MRIA)on18thMarch 2013. Overall designing, installation of internally and externally coated underground pipelines (approx. 1.2 km), construction of valve pits, construction of 27 fuel hydrant pits, all mechanical and electronic installations up to the valve pit no.5 tie-in-point were completed under the package 1. Package 2: Construction of
Ministry of Petroleum Industries 35
and piping were procured and currently are being installed.
2.4.2 Ceylon Petroleum Storage Terminals Limited
a) Testing Laboratory
CPSTL has proposed to upgrade its Laboratory facilities at Kolonnawa with modern equipments in order to test the quality of imported products. Proper testing of petroleum products, maintaining quality of products, improving customer satisfaction and trust and obtaining accreditation for the laboratory are the main expected benefits from this project. Totalestimated cost of the project is Rs. 300 million.
Drawings and preparation of bidding documents have been completed. Arrangements have been made to call quotations from construction parties. Training of laboratory staff has already been started as a part of upgrading process. Construction activities will commence by the end of 2014.
b) Unified Threat Management (UTM)
Installation of a Unified Threat Management(UTM) solution for CPSTL IT infrastructure would reduce and manage the internal and external threats which may occur within the server system, Local and Wide Area Networks, Internet and e-mail infrastructure. The main objective of the project is to enhance the monitoring and control of cyber threats and unauthorized access to the system resources. Total estimated cost of this project is Rs. 12 million.
UTM solution has been implemented at IT Division of CPSTL. Simulation testing has been completed to determine the solution behavior in the event of actual attacks. The project was implemented during the period from February 2012 to June 2013.
c) Active Directory
Installation of AD solution for CPSTL Data Centre will enable central management of Desktop computers connected to CPSTL’s Wide Area Network. With AD it becomes easier
to maintain virus guard software updated to current levels with less time and with automated procedure and required patches for operating system updated in a timely manner in addition to the main advantage of securing access to desktops and other network resources by authorized persons only. The main objective of the project is to enhance security and control of desktops and the use of network resources only by authorized persons validated via AD. Total estimated cost of the project is Rs. 3 Million.
Implementation of Active Directory has been completed.Advanced trainings for the officerson this solution have also been completed.
d) Disaster Recovery Site
Establishment of Disaster Recovery (DR) solution for CPSTL Data Centre is required to face any situation where the failure of the primary site will not curtail critical operations of CPSTL, CPC, LIOC. This DR solution needs to meet Recovery Point Objective (RPO) and Recovery Time Objective (RTO) of the three companies tobewithcosteffectiveaswellasefficientintheoperation.
Parties received through Expression of Interest were short listed for formal proposal submission by CPSTL based on Request For Proposals (RFPs). A document has been prepared and requested selected parties to send their offers. CPSTL is awaiting the offers from short listed parties.
e) Road Tanker Calibration Facility
Design, construction and commissioning of liquid provision system conforming to applicable standards and operation was completed with the assistance of Department of Measurement Units Standards and Services.
f) Quality Assurance Equipments
Procurement, installation and commissioning of instrumentation for Kolonnawa Laboratory for quality assurance purposes due to the up-gradation of fuel specifications by marketingcompanies were completed.
36 Ministry of Petroleum Industries
2.5 Institutional Administration
2.5.1 Ministry of Petroleum Industries
a) Regulating Petroleum Industry
There has been a necessity for the amendment of the Ceylon Petroleum Corporation (CPC) Act No 28 of 1961 in consultation with theAttorney General’s Department. Further, the Public Utilities Commission of Sri Lanka (PUCSL) is to be empowered by amending the Petroleum Product (Special Provisions) Act No 33 of 2002.
Accordingly the amended drafts of above two Acts have been referred for the approval of the Attorney General’s Department. Amended Petroleum Product (Special Provisions) Act No 33 of 2002 has been approved and the observations of the Attorney General’s Department on the draft of the amended Ceylon PetroleumCorporation(CPC)ActNo28of 1961has been received. The Ministry is awaiting for the agreement of Ceylon Petroleum Corporation (CPC) in respect of these observations. After receiving the CPC agreement, the Ministry will take necessary actions to forward the amended Act to the Legal Draftsmen.
b) Better Coordination
The Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Limited are the institutions that come under the Ministry of Petroleum Industries. The appointment of the Board of Directors to these institutions and other related activities are done by the Ministry with the concurrence of the subject Minister. Specially the Ministry coordinates and performs the activities on preparation of human resource plan, scheme of recruitment, promotion, creation of new cadre positions, activities relating to outsourcing and obtaining the approval thereon from relevant authorities.
The approval was obtained from Salaries and Cadre Commission and Department of Management Services for the new human resource plan of the Ceylon Petroleum Corporation by 17th July 2013.
In addition, Ministry’s officials representManagement Committees, Audit Committees and Officer-TransferBoardsaswellastheInterviewBoards with regard to all recruitments of these two institutions. Moreover, Ministry will act on leavemattersof allofficersof theseinstitutionsin coordination with relevant authorities to get approval for their special duty leave and leave abroad.
c) Parliament Activities
The Ministry’s parliamentary activities include to solve problems and issues that crop up when it performs its subject matters or submits the bills in Parliament or resolve the problems that arise while implementing the Government Financial Regulations and Administrative Procedures.
A summary of actions taken by the Ministry for inquiries at Public Petition Committee, Parliamentary Consultative Committees and the questions expecting oral answers made by the Members of Parliament from the Ministry’s inception up to now are indicated in Table 2.11.
Year
Petitions- Public
Petition Committee
Proposals and Inquiries to
Parliamentary Consultative Committee
Parliam-entary
Questions
2006 07 04 09
2007 06 04 07
2008 05 01 21
2009 02 04 09
2010 01 01 07
2011 05 06 16
2012 00 05 18
2013 02 02 17
Jan-June 2014 (a) 01 01 12
Total 29 28 116
Source: Ministry of Petroleum IndustriesNote: Provisional
Table 2.11Summary of inquiries made by Public Petition Committee and
Members of Parliament
Ministry of Petroleum Industries 37
Parliamentary Consultative Committee
The Parliamentary Consultative Committee (PCC) consisting of 25 Members of Parliament nominated by Parliament meets with regard to activities on Petroleum Industries. It is chaired by the Hon. Minister of Petroleum Industries.
Two consultative committee meetings were held during the period from 2013 to June 2014. Having considered the three proposals presented by the members of Parliament at these meetings, the reports which contain the actions taken by the Ministry in collaboration with its agencies were submitted to the Parliament.
Parliamentary Questions
The subject Minister of the Ministry is responsible to give oral answers to the quarries made by Hon. Members of Parliament within the scope of the Ministry providing the background reports connected thereto.
There were 17 quarries and 12 quarries in 2013 andfirsthalf of 2014respectivelymadeexpectingverbal answers. All questions were answered by the Hon. Minister with the background reports in time.
Public Petition Committee
This committee has been appointed in order to look into the grievances and complaints of different consumers as well as the current and ex-employees of the Ministry of Petroleum Industries and the two institutions that come under its purview. Answers for the three petitions received during the period from 2013 to June 2014 were properly submitted to the Public Petition Committee.
d) Ombudsman
Ombudsman is expected to grant reliefs for the problems of the public and the different consumers as well as the current and ex-employees of the Ministry of Petroleum Industries and other institutions that come under the purview of this Ministry.
There were three complaints received by the
Ministry during the reporting period and the relevant reports to these complaints were furnished to the Ombudsman.
e) Legal and Court Actions
The matters, such as getting necessary legal advice to the problems raised while performing the responsibilities assigned to the Ministry, taking court actions to the legal problems raised by the institutions and trade unions, seeking legal remedies through courts to give relief to the problems of the employees working at the Ministry and the two institutions under the Ministry are attended through these actions.
Actions have been taken regarding 93 court casesthathadbeenfiledfromtheinceptionof the Ministry up to 30th June 2014.
f) Human Rights Commission
This commission has been established under the Act No 21 of 1996 to provide itsrecommendations after examining the complaints received by this commission. Accordingly, this Ministry has to conduct investigations on the complaints received against the officers of theMinistry, CPC and CPSTL from various parties.
There were no complaints received within the periodof firsthalf of 2014andnecessaryactionsare being taken for the complaints received earlier.
g) Dengue Eradication Program
This program is implemented by the Ministry being an active partner for the national program launched by the Government to prevent dengue epidemic that spreads throughout the country.
Accordingly, the Ministry has taken the following steps to control and eradicate dengue menace.
A committee was established in year 2013 in order to implement the dengue eradication program and monitor its activities continuously.
Taking action by the committee to inspect and destroy the mosquito breeding places within the Ministry premises and buildings every Friday.
38 Ministry of Petroleum Industries
Taking steps to cut and remove the unnecessary branches of all the trees on the Ministry premises once in 03 months.
Renovating the drainage system of the Ministry buildings to drain out water properly and apply the mosquito killers into the places where the water stagnate, twice a week.
Taking steps to fumigate the Ministry premises in order to destroy the mosquitoes periodically.
Obtain assistance from the Municipal Council of Colombo to control the dengue breeding.
Coordinating and guiding the institutions that comes under the purview of the Ministry- the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Ltd to implement the said program to eradicate dengue menace.
It is noted that this Ministry has been recognized as an institution which implements the dengue eradication program at a satisfactory level by the Public Health Instructors of the Municipal Council in Colombo.
h) Human Resource Management / Capacity Building
The following actions have been taken to achieve the objectives of the Ministry through formally managing the establishment and administrative matters of the staffs of the Hon. Minister, Hon. Deputy Minister and the Ministry.
i. Staff recruitments
Functions such as recruitments of the staff of the Hon. Ministers and Ministry, termination of the services, preparation of Scheme of Recruitments,maintenanceof personalfilesof the staffs, internal attachments and transfers are carried out under this subject.
The post of Senior Assistant Secretary (Development)wasfilledandalegalofficerwasrecruited to the Ministry as per the approval
of Public Service Commission. Five posts of Development Officers were created duringyear 2013 and the approval for the same was obtained from the relevant authorities. Also, a Procurement Division to handle the procurement activities has been newly established and three officersforthepostsof anAdditionalSecretary,a Director, an Assistant Director created in 2013 were recruited.
ii. Welfare Activities
Activitiesrelatingtothepensionsof theofficerswho are entitled for the pensions, activities relating to Employees Provident Fund, overtime allowances, transport allowances, other special allowances, train concessionary season tickets, loan on concessionary interest rates are carried out under this subject.
Actions have been taken in relation to the pensionsof threeofficersof theMinistrystaff during year 2013. While 131 train season tickets wereissuedforthe18officerswhousethetrainfortheirtransportation,16freerailwaywarrantswere also issued during 2013. The Ministry has granted the approval to pay Rs. 87,500.00as special advances, Rs. 300,000.00 as festival advances, Rs. 2,792,423.00 as distress loans and Rs. 1,143,404.00 as property loans.
Further,68 trainseason ticketswere issuedfor17 officers and 05 free railway warrants wereissuedduringtheperiodof firstsixmonthsof 2014. The Ministry granted the approval to pay Rs.80,000.00asspecialadvances,Rs.265,000.00as festival advances, and 939,065.50 as distressloans during the reporting period. In addition, approval was granted to pay Rs.30,000.00 as motor bicycles loans.
iii. Capacity Building
The opportunities have been granted to the existing staff to participate in various training programs in order to deliver a more effective andefficientpublic service through training todevelop their knowledge, skills and attitudes. Training programs provided by the Ministry in 2013 are given in Table 2.12 below.
Ministry of Petroleum Industries 39
Table 2.12 Training Programs Provided by the Ministry in 2013
No. Course Details Institute Officers Duration
Local Trainings
01. DiplomainOfficeManagement Sri Lanka Institute of Development Administration 01 01 year
02 Public Procurement Procedures Sri Lanka Institute of Development Administration 04 02 days
03 OfficeManagement Sri Lanka Institute of Development Administration 01 05 days
04 Public Finance Management Sri Lanka Institute of Development Administration 01 05 days
05 Effective Internal Auditing Skill Development Fund Ltd. 03 01 day
06 Supervisory Management Skill Development Fund Ltd. 02 01 day
07. Project Management Skill Development Fund Ltd. 01 02 days
08 Salary Conversion Skill Development Fund Ltd. 02 01 day
09 AnnualStockVerificationandDisposalProcedure Skill Development Fund Ltd. 01 02 days
10. MS Access MILODA Institute 01 05 days
11. CertificateCourseonBasicTamil Sri Lanka Foundation 02 05 Months
12 Practical Aspect of Bid Evaluation Institute of Constriction Training and Development 01 01 day
13 Reducingof AuditQuarriesandPublicaccounting Procedure
Association of Public Finance Accountants of Sri Lanka 01 1/2day
14 Payment and Settlement System Central Bank of Sri Lanka 02 02 days
15 Diploma in Advanced English University of Colombo 01 01 year
16 Public Sector Accounting Standards Association of Public Finance Accountants of Sri Lanka 03 01 day
17 Master in Economics University of Colombo 01 01 year
18 Postgraduate Diploma in Environment Management University of Colombo 01 01 year
19 Postgraduate Diploma in Financial Mathematics University of Moratuwa 01 01 year
Foreign Trainings
20 Seminar on Female Capacity Building for Developing Countries
Fujian Foreign Trade and Economic Corporation, China 01 20 days
Source: Ministry of Pteroleum Industries
Inthefirstsixmonthsof 2014,11officialsforlocaltrainingsand2officersforforeigntrainings
were attended. The details of the trainings granted by this Ministry during that period are indicated in Table 2.13
40 Ministry of Petroleum Industries
Table 2.13Training Programs Provided by the Ministry
January - June 2014 (a)
No. Course Details Institute Officers Duration
Local Trainings
01. Public Finance Management Sri Lanka Institute of Development Administration 04 02 days
02 OfficeManagement Sri Lanka Institute of Development Administration 01 03 days
03 Procurement Management Sri Lanka Institute of Development Administration 01 02 days
04 Productive Management Skills for AdministrativeOfficers
Sri Lanka Institute of Development Administration 01 02 days
05 Project Proposal Writing Sri Lanka Foundation 01 02 days
Foreign Trainings
06 Program on Knowledge Sharing University of Korea, Korea 01 06days
07 Project Management National University, Singapore 01 13 days
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
Ministry of Petroleum Industries 41
Table 2.15 Programs implemented under Deyata Kirula – 2014 (a)
“Deyata Kirula” National Development Program and Exhibition“Deyata Kirula” National Development Program and Exhibition has been launched by the Government to accelerate the process of economic, social and cultural development of the country and also to make aware the general public on the process and performance of government institutions. This program is being carried out every year covering a specific/selected geographical area focusing on general public specially the communities in the selected area.Theaimsof thisprogramaretofulfilltheurgentandimmediateneedsof thephysicalresources of selected area in the targeted year and to reduce socio- economic disparities of the communities through various strategies by connecting the government institutions while awakening the people through their religions and cultural activities.
The Ministry of Petroleum Industries in co-operation with its institutions, the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Limited has made a substantial contribution to achieve socio-economic and cultural development in selected areas under “Deyata Kirula” National Development Program and Exhibition in 2013 and 2014 (Table 2.14 and 2.15 respectively).
Table 2.14 Programs Implemented under Deyata Kirula - 2013
No Name of the Project District Plan of the year 2013 Investment(Rs. Mn)
01 Development of a selected school Ampara
Construct a teachers’ dormitory for Tampitiya
Maha Vidyalaya2.60
02 Modernization of Filling Stations
AmparaBatticoloa
Trincomalee 5 Filling Satations
By the owners of relevant Filling
stations
03 Enhancement of Diesel and Kerosene depots
Ampara SammanthuraiSainamarathuMaligakadu
By the owners of relevant Filling
stations
04 Reconstruction of Co-oporative Filling Station Ampara Co-oporative Filling
Station, Ampara 25.00
Source: Ministry of Petroleum Industries
No Name of the Project District Plan of the year 2014 Investment(Rs. Mn)
01 Development of a selected school Kurunegala Modernization of Main Hall ,
Sandalankawa National College 6.82
02 Modernization of religious places Kurunegala
a) Nandarama Buddhist Temple, Walakumburamullab) Catholic Church- Hettirippuwac) Mosque - Mummanad) Hindu Temple-Katugampola
By the owners of Filling Stations
03 Modernization of Filling Stations
KurunegalaPuttalamKegalle
AllfillingStationsundertheCeylon Petroleum Corporation
By the owners of relevant
Filling Stations
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
42 Ministry of Petroleum Industries
i) Internal Audit
The number of audit quarries and special investigations undertaken during the reporting periodisgiveninTable2.16.
a) Institutional Administrative Activities
i. Implementation of the revisions of the approved cadre- 2012 was initiated as recommended therein, such as renaming some Functions and changing some designations. Eg. Name of Planning and Development (P&D) Function was changed to Technical Services and Corporate Affairs (TS & CA) and designation of clerks were renamed as Management Assistants.
ii. Introducing a new attendance system for CPC – Thumb reading system was introduced to the Corporation since it centralizes the attendance system making it possible for generating reports at any given time and recording accurate attendance of employees by avoiding malpractices.
b) Training and Development
i. 500 employees at Grade B & C were made aware on current procedures in terms of HRM and administration.
ii. Special lectures by visiting lecturers were delivered to improve the capacity of the employees.
iii. 26 employees followed study programs atexternal institutes from January 2013 to June 2014.
iv. 234 employees were sent for short-term training programs within the reporting period.
c) Recruitments and Promotions
i. 114 external candidates were recruited for GradeA,GradeB andGradeCwhile 128employees of the same grades have been given internal promotions.
ii. Revision of recruitment and promotion procedure was initiated and revising the markingschemeisinprogressasfirststep.
d) Welfare Activities
i. Scholarships were granted to 38 CPCemployees’ children who were selected to enter the state universities.
Seven Audit and Management Committee meetingswith the participation of the officersof the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Limited were conducted during the period from 2013 to June 2014 in order to discuss about the solutionsfortheissuesandproblemsidentifiedby the Audit and Management Committee. Two preparatory meetings of Committee on Public Enterprises (COPE)were held during thefirsthalf of 2014.
Further, the Ceylon Petroleum Storage Terminals LimitedwasdirectedtotheCOPEforthefirsttime and an investigation meeting was also conductedintermsof theCPCduringthefirstsix months of 2014.
2.5.2 Ceylon Petroleum CorporationHuman Resource Management (HRM) Function achieved its main objectives of empowering, motivating and developing manpower in relation to2,602permanentemployeesand74contractbasis employees of the CPC as at 30th June 2014. In addition, HRM Function administers all the HRM issues such as recruitments and promotions, performance appraisals, disciplinary actions, leave, matters pertaining to salaries and increments, service assessments, loan facilities, service awards and all other human resource development activities.
Table 2.16 Audit Quarries and Special Investigations
Type 2013 Jan – June 2014
Audit quarries of the Ministry 19 10
Special investigations 09 02
Source: Ministry of Petroleum Industries
Ministry of Petroleum Industries 43
Position Approved Cadre Existing Vacant
A Grades – Executive Staff
SeniorManagers(A2/3andabove) 30 26 04
Middle Management (A 4 – A 5 ) 86 53 33
JuniorExecutives(A6–A7) 149 138 11
B Grades – Clerical & Supervisory Staff
Technical Staff 106 104 02
Non - Technical Staff 1,050 877 173
C Grades – Skilled & Unskilled minor staff
Technical Staff 338 313 25
Non- Technical Staff 1,850 1,561 289
Grand Total 3,609 3,072 537
Source: Ceylon Petroleum Storage Terminals Limited
Table 2.17 CPSTL Cadre as at 30th June 2014
ii. In plant, on-the- job and industrial training opportunities were given to 154 students from government institutes.
iii. Serviceawardswereofferedto148employeeswho have rendered for 20, 30 and 35 years (45, 60 and 43 employees respectively) of meritorious service to the CPC.
iv. Financial assistance of Rs. 500,000 was given to the CPC Sports Club during the year 2013 to encourage the participation of employees insportsactivitiesandalsofinancialassistancewas given to employees who participated in international events representing Sri Lanka in nationalserviceAthletic/Badmintonteams.This facility also continued in 2014.
v. Under the medical assistance scheme CPC contributed Rs. 20,000 to each employee for the year 2013 where an employee’s family unit is entitled for medical facility worth of Rs.400,000. This facility also continued in 2014.
2.5.3 Ceylon Petroleum Storage Terminals Limited
a) Institutional Administration
i. 13 Management Trainees recruited in 2012 are now completing on the job training in their respectivefieldsandtheywillbegroomedasfuture managers of CPSTL.
ii. 09 BSc. qualified Mechanical and CivilEngineers in the year 2014 were recruited to perform duties mainly on operations and engineering areas.
iii. 25 of technical staff were recruited to the Garage Function to improve the quality of vehicle maintenance.
iv. A new promotional scheme was introduced for the employees who are retiring after serving 30 years in CPSTL and CPC.
v. Nearly 2,240 employees were trained through 39 in-house training programs.
b) Human Resources
44 Ministry of Petroleum Industries
2.6 Accounts
2.6.1 Ministry of Petroleum Industries
Table 2.18
Table 2.19
Recurrent Expenditure of the Office of Hon. Ministers2013 - June 2014 (Rs. Mn)
Recurrent Expenditure of the Ministry2013 - June 2014 (Rs. Mn)
No. Types of Expenditure
Budgetary Provisions (After FR transfers)
2013
Actual for 2013 %
Budgetary Provisions
2014 (a)
Actual Exp. up to 30.06.2014
(a)
%
01 Personal Emoluments 16.22 15.85 97.7 18.15 8.03 44.2
02 Travelling Expenditure 1.88 1.82 96.9 3.90 1.04 26.7
03 Supplies 12.96 12.82 98.9 13.60 6.32 46.5
04 Maintenance Expenditure 3.80 3.68 96.8 5.50 2.22 40.4
05 Constructional Services 21.03 20.37 96.8 10.00 3.94 39.4
06 Transfers 0.80 0.77 96.6 0.75 0.38 50.6
Total 56.69 55.31 97.57 51.90 21.93 42.3
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
No. Types of Expenditure
Budgetary Provisions (After FR transfers)
2013
Actual for 2013 %
Budgetary Provisions
2014 (a)
Actual Exp. up to 30.06.2014
(a)
%
01 Personal Emoluments 27.90 26.57 95.2 32.60 16.09 49.4
02 Travelling Expenditure 0.42 0.40 95.2 2.15 0.25 11.6
03 Supplies 7.44 7.37 99.1 7.70 4.06 52.7
04 Maintenance Expenditure 3.60 2.72 75.6 5.00 2.14 42.8
05 Constructional Services 18.61 18.00 96.7 29.40 14.20 48.3
06 Transfers 0.33 0.32 95.6 0.60 0.27 45.0
07 “Deyata Kirula” National Dev. Prog. * * * 1.00 0.85 85.0
Total 58.30 55.38 95.00 78.45 37.86 48.3
Source: Ministry of Petroleum IndustriesNote: (a) Provisional * Allocations has come under Capital Expenditure
Ministry of Petroleum Industries 45
Table 2.20 Capital Expenditure of the Office of Hon. Ministers 2013 - June 2014 (Rs. Mn)
No. Types of Expenditure
Budgetary Provisions (After FR transfers)
2013
Actual for 2013 %
Budgetary Provisions
2014 (a)
Actual Exp. up to 30.06.2014
(a)
%
01 Rehabilitation of Capital Assets 0.40 0.00 0.0 0.30 0.00 0.0
02 Acquisition of Capital Assets 6.45 4.74 73.4 22.60 10.82 47.9
Total 6.85 4.74 69.18 22.90 10.82 47.2
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
Table 2.21Capital Expenditure of the Ministry
2013 - June 2014 (Rs. Mn)
No. Types of Expenditure
Budgetary Provisions (After FR transfers)
2013
Actual for 2013 %
Budgetary Provisions
2014 (a)
Actual Exp. up to 30.06.2014
(a)
%
01 Rehabilitation of Capital Assets 0.80 0.74 92.5 0.40 0.15 37.5
02 Acquisition of Capital Assets 5.55 5.36 96.5 2.00 1.99 99.5
03 Skill Development 1.15 1.12 96.9 2.00 0.70 35.0
04 Investments 2.65 0.95 35.8 5.70 0.54 9.5
Total 10.15 8.17 80.5 10.10 3.38 33.5
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
Table 2.22Government Officers’ Advance Account
2013 - June 2014 (Rs. Mn)
2013 June 2014 (a)
Max. limit of
expenses
Min. limit of receipts
Max. debit limit
Max. limit of Expenditure
Min. limit of receipts
Max. debit limit
Limits 4.00 1.20 13.00 3.00 1.80 12.50
Actual Expenditure 1.49 4.18 9.76 2.44 1.97 10.24
Source: Ministry of Petroleum IndustriesNote: (a) Provisional
46 Ministry of Petroleum Industries
2.6.2 Ceylon Petroleum Corporation
Description CPC Consolidated Accounts
31.12.2012 Rs. Mn
31.12.2013 Rs. Mn
31.12.2012 Rs. Mn
31.12.2013 Rs. Mn
Revenue 512,910.31 490,381.49 514,546.56 490,819.11
Cost of Sales (573,692.05) (467,637.93) (580,519.81) (474,048.38)
Gross Profit/(Loss) (60,781.74) 22,743.56 (65,973.25) 16,770.73
Other Operating Income 246.33 321.98 543.12 585.64
Income on Investment Property 38.98 52.02 38.98 52.02
Selling & Distribution Expenses (12,633.10) (11,965.25) (2,773.53) (1,600.65)
Administrative Expense (5,800.74) (3,600.15) (8,801.50) (6,619.55)
Operating Profit/(Loss) (78,930.27) 7,552.16 (76,966.18) 9,188.19
Finance Charges (18,359.68) (18,539.85) (18,360.20) (18,539.85)
Finance Income 7,720.77 3,254.88 7,592.27 3,279.62
Loss before Income Tax (89,569.18) (7,732.81) (87,734.11) (6,072.04)
Income Tax expense - - (75.91) (117.18)
Loss after Tax before extra ordinary activities (89,569.18) (7,732.81) (87,810.02) (6,189.22)
Less: Hedging Expenses (7,611.60) (214.49) (7,611.60) (214.49)Loss for the year after extra ordinary activities (97,180.78) (7,947.30) (95,421.62) (6,403.71)
Other comprehensive income
Loss on investment (51.50) (14.50) (51.50) (14.50)
Acturial Loss (76.10) (22.42) (76.10) (22.42)
Other comprehensive loss for the year (127.60) (36.92) (127.60) (36.92)
Total comprehensive loss for the year (97,308.37) (7,984.22) (95,549.22) (6,440.63)
Less : Non controlling interest - - (586.38) (514.53)
Profit /(Loss) for the year (97,308.37 (7,984.22) (96,135.60) (6,955.16)
Source: Ceylon Petroleum Corporation
Table 2.23 CPC’s Income Statement2012 - 2013 (Unaudited)
Ministry of Petroleum Industries 47
DescriptionCPC Consolidated Accounts
31.12.2012 Rs. Mn
31.12.2013 Rs. Mn
31.12.2012 Rs. Mn
31.12.2013 Rs. Mn
AssetsNon - Current AssetsProperty, Plant & Equipment 9,572.20 13,110.64 28,627.95 31,083.70Investment Property 26.97 26.17 26.97 26.17Intangible Assets - - 229.43 139.29Investment in Subsidiary 5,000.00 5,000.00 - -Other Investments 53.13 38.63 53.13 38.63Investments in Fixed Deposits 5.00 5.00 5.00 5.00Trade and Other Receivables - More than one year 16,110.99 34,841.09 14,682.45 34,841.09
Deferred Tax Asset - - - -30,768.29 53,021.53 43,624.93 66,133.87
Current AssetsInventories 62,189.83 65,032.20 62,550.30 65,428.44Trade & Other Receivables - Due within one year 101,403.01 55,331.86 104,303.42 56,791.98
Income Tax Recoverable 246.99 713.64 628.06 1,018.23Investments in Fixed Deposits - 6,801.65 - 6,801.65Cash and Cash Equivalents 11,623.63 6,134.53 12,085.56 10,327.57
175,463.46 134,013.88 179,567.34 140,367.87Total Assets 206,231.75 187,035.41 223,192.27 206,501.74Equity and LiabilitiesCapital and ReservesContributed Capital 1,000.00 1,000.00 1,000.00 1,000.00Shares Held in C. P. S. T. L 2,500.00 2,500.00 2,500.00 2,500.00Capital Reserve 4,992.69 4,992.69 4,992.69 4,992.69Reserve on consolidation - - 2,485.64 2,485.64Retained Earnings (237,037.20) (245,021.43) (233,748.59) (240,703.75)Non controlling interest - - 5,387.13 5,901.66Total Equity (228,544.51) (236,528.74) (217,383.13) (223,823.76)Non - Current LiabilitiesRetirementBenefitsLiability 546.94 538.11 1,652.78 1,750.07Deferred Tax - - 366.07 406.77Interest Bearing Loans & Borrowings 1,998.22 1,350.85 4,521.42 3,725.30
2,545.16 1,888.96 6,540.27 5,882.13Current LiabilitiesTrade and Other Payables 220,897.35 194,096.93 221,848.49 196,199.05Interest Bearing Loans & Borrowings 211,163.06 227,407.57 212,015.95 228,073.62
Provision for Deemed Dividend Tax Expense 170.69 170.69 170.69 170.69
432,231.10 421,675.19 434,035.13 424,443.36Total Equity and Liabilities 206,231.75 187,035.41 223,192.27 206,501.74
Source: Ceylon Petroleum Corporation
Table 2.24 CPC’s Balance Sheet2012 - 2013 (Unaudited)
48 Ministry of Petroleum Industries
Table 2.25CPC’s Income Statement
January - June 2014 (Unaudited) Rs. Mn
Description CPC 30.06.2014
Consolidated Accounts 30.06.2014
Revenue 284,683.45 285,396.35
Cost of Sales (268,951.62) (272,782.93)
Gross Profit/(Loss) 15,731.83 12,613.42
Other Operating Income 178.58 275.49
Income on Investment Property 24.76 24.76
Selling & Distribution Expenses (6,205.12) (488.04)
Administrative Expense (1,512.32) (3,213.13)
Operating Profit/(Loss) 8,217.73 9,212.50
Finance Charges (6,927.48) (6,927.48)
Finance Income 1,637.27 1,647.30
Profit/(Loss) before Income Tax 2,927.51 3,923.32
Income Tax Expense (30.00) (155.60)Profit/(Loss) after Tax before extra ordinary activities 2,897.51 3,776.72
Less: Hedging Expenses (36.08) (36.08)Profit/(Loss) for the year after extra ordinary activities 2,861.43 3,740.64
Other comprehensive income - -
Loss on investment - -
Actuarial Loss - 23.85
Other comprehensive loss for the year - -
Total comprehensive loss for the year 2,861.43 3,764.49
Less : Non controlling interest - (301.02)
Profit/(Loss) for the year 2,861.43 3,463.47Source: Ceylon Petroleum Corporation
Ministry of Petroleum Industries 49
Description CPC 30.06.2014
Consolidated Accounts 30.06.2014
AssetsNon - Current AssetsProperty, Plant & Equipment 13,391.36 30,901.12 Investment Property 26.17 26.17Intangible Assets - 93.70 Investment in Subsidiary 5,000.00 -Other Investments 38.63 38.63Investments in Fixed Deposits 5.00 5.00 Trade and Other Receivables - More than one year 7,967.36 6,824.55Deferred Tax Asset - -
26,428.52 37,899.16 Current AssetsInventories 49,107.07 49,626.56Trade & Other Receivables - Due within one year 62,204.92 64,878.92Income Tax Recoverable 755.74 1,041.16Investments in Fixed Deposits 1,003.07 6,003.07Cash and Cash Equivalents 19,163.43 19,962.32
137,234.22 141,512.01 Total Assets 163,662.74 179,401.17 Equity and LiabilitiesCapital and ReservesContributed Capital 1,000.00 1,000.00 Shares Held in C. P. S. T. L 2,500.00 2,500.00 Capital Reserve 4,992.68 4,992.69Reserve on consolidation - 2,485.64Retained Earnings (242,159.95) (237,253.12) Non controlling interest - 6,196.26Total Equity (233,667.31) (220,078.26) Non - Current LiabilitiesRetirementBenefitsLiability 545.65 1,844.90Deferred Tax - 475.50 Interest Bearing Loans & Borrowings 1,065.15 3,195.60
1,610.79 5,516.00 Current LiabilitiesTrade and Other Payables 199,845.58 197,295.83Interest Bearing Loans & Borrowings 195,702.98 196.497.193Provision for Deemed Dividend Tax Expense 170.69 170.69
395,719.25 393,963.71Total Equity and Liabilities 163,662.73 179,401.17
Source: Ceylon Petroleum Corporation
Table 2.26CPC’s Balance Sheet
(Unaudited) January - June 2014 Rs. Mn
50 Ministry of Petroleum Industries
2.6.3 Ceylon Petroleum Storage Terminals Limited
Table 2.27 CPSTL’s Income Statement2013 - June 2014
DescriptionAudited 31.12.2013
(Rs.Mn)
Unaudited Six Months ended
30.06.2014 (Rs.Mn)
Terminal Charges, Operating Income and Net Interest Income 8,005.35 4,423.45
Direct Expenses (3,113.22) (1,665.82)
Net Terminal Income 4,892.13 2,757.63
Net transport loss (531.80) (187.31)
Net Bunkering Income 141.06 28.36
Gross Profit 4,501.39 2,598.68
Other Income 138.97 96.90
4,640.36 2,695.58
Administration expenses (3,068.83) (1,700.80)
Operating Profit 1,571.53 994.78
Net Finance Income 24.52 10.02
Profit before taxation 1,596.05 1,004.80
Income tax expense (216.02) (125.60)
Profit for the year 1,380.03 879.20
Other comprehensive income / (expenses)
Actuallossfromretirementbenefit
Obligation – net of tax (42.04) 23.85
Total comprehensive income for the year 1,337.99 903.05Source: Ceylon Petroleum Storage Terminals Limited
Ministry of Petroleum Industries 51
Description Audited 31.12.2013 (Rs.Mn)
Unaudited Six Months ended
30.06.2014 (Rs.Mn)
Assets
Non-Current Assets
Property, Plant and Equipment 17,973.05 17,509.75
Intangible assets 139.29 93.70
18,112.34 17,603.45
Current Assets
Inventory 396.24 519.49
Trade and other receivables 897.90 107.87
Amount due from related parties 5,607.88 7,212.77
Staff loans and advances 1,802.12 2,038.75
Income tax recoverable 285.42 285.42
Cash and cash equivalents 1,375.55 798.89
10,365.11 10,963.19
Total Assets 28,477.45 28,566.64
Equity and Liabilities
Capital and Reserves
Stated capital 7,500.00 7,500.00
Capital reserve 979.00 979.00
Retained earnings 9,206.72 10,109.77
Total Equity 17,685.72 18,588.77
Non – Current Liabilities
Retirementbenefitobligation 1,217.02 1,299.25
Deferred Tax 394.66 475.50
Interest bearing borrowings 3,231.56 2,701.96
4,843.24 4,476.71
Current Liabilities
Trade and other payables 2,407.10 1,824.90
Excess terminal charges refund payable 1,185.64 1,185.64
Dividend payable 1,125.00 1,125.00
Interest bearing borrowings 1,059.20 1,059.21
Bank overdraft 171.55 306.41
5,948.49 5,501.15
Total Equity and Liabilities 28,477.45 28,566.64
Source: Ceylon Petroleum Storage Terminals Limited
Table 2.28CPSTL’s Balance Sheet
2013 - June 2014
52 Ministry of Petroleum Industries
Ministry of Petroleum Industries 53
APPENDIX
54 Ministry of Petroleum Industries
Ministry of Petroleum Industries 55
Country 2008 2009 2010 2011 2012 2013North America 15,091 15,453 16,105 16,694 17,902 19,321Central and South America 7,464 7,525 7,687 7,857 7,801 7,944Europe 5,190 4,983 4,647 4,269 3,979 3,799Eurasia 12,561 12,944 13,256 13,332 13,415 13,525Middle East 26,117 24,831 25,976 27,413 27,671 27,394Africa 10,603 10,461 10,700 9,327 9,980 9,431Asia and Oceania 8,693 8,752 9,134 8,994 9,009 8,920
World 85,719 84,949 87,504 87,885 89,757 90,333
Source : http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm
Country 2008 2009 2010 2011 2012North America 23,893 23,014 23,535 23,270 22,924Central and South America 6,014 6,106 6,331 6,571 6,765Europe 16,152 15,375 15,337 14,961 14,424Eurasia 4,156 4,133 4,160 4,366 4,529Middle East 6,500 6,752 6,991 7,537 7,621Africa 3,141 3,260 3,374 3,297 3,360Asia and Oceania 24,841 26,277 27,800 28,743 29,784World 84,697 84,918 87,527 88,744 89,407
Source : http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm
Table 2 World Oil Production 2008 - 2013 (1000bbl/day)
Table 3 World Oil Consumption 2008 - 2012 (100bbl/day)
Year Quantity Year Quantity1980 642 1997 1,0191981 649 1998 1,0201982 667 1999 1,0331983 666 2000 1,0171984 666 2001 1,0281985 698 2002 1,0321986 699 2003 1,2131987 698 2004 1,2651988 888 2005 1,2771989 906 2006 1,2931990 1,001 2007 1,3171991 999 2008 1,3321992 989 2009 1,3401993 996 2010 1,3401994 998 2011 1,4741995 999 2012 1,5261996 1,007 2013 1,646
Source : http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm
Table 1 World Proved Reserves of Crude Oil 1980 -2013 (Bn.bbl)
56 Ministry of Petroleum Industries
MonthBrent Market Price Ex. Rate
1 US$=Rs.US$/bbl Rs/bbl
January 108.11 14,133 130.73
February 108.90 14,246 130.82
March 107.48 14,040 130.63
April 107.76 14,076 130.62
May 109.54 14,289 130.45
June 111.80 14,566 130.29Source: Brent Price- http.//www.eia.gov./dnav/pet/pet_pri_spt_sl_d.htmExchange Rate: Central Bank of Sri LankaNote: (a) Provisional
YearBrent Market Price Ex. Rate
(1 US$ = Rs)US$/bbl Rs/bbl2000 28.52 2,161 75.782001 24.45 2,185 89.362002 24.96 2,388 95.662003 28.88 2,788 96.522004 38.23 3,868 101.192005 54.42 5,469 100.502006 65.15 6,773 103.962007 72.47 8,016 110.622008 96.85 10,492 108.332009 61.49 7,068 114.942010 79.51 8,990 113.062011 111.26 12,302 110.572012 111.65 14,247 127.602013 108.56 17,104 129.11
Source: Brent Price- http.//www.eia.gov./dnav/pet/pet_pri_spt_sl_d.htmExchange Rate: Central Bank of Sri Lanka
Table 4 Monthly Brent Price of Crude Oil January - June 2014 (a) Table 5 Annual Brent Price of Crude
Oil 2000 - 2013 (Rs/bbl)
Table 6 Monthly Price of Crude Oil in Different Markets January – June 2014 (a)
MonthPlatts Market Price Brent Market Price WTI Market Price Exchange
Rate(1 US$=Rs)US$/bbl Rs/bbl US$/bbl Rs/bbl US$/bbl Rs/bbl
January 104.02 13,599 108.11 14,133 94.62 12,370 130.73
February 105.05 13,743 108.90 14,246 100.82 13,189 130.82
March 104.33 13,629 107.48 14,040 100.80 13,168 130.63
April 104.81 13,690 107.76 14,076 102.07 13,332 130.62
May 105.73 13,792 109.54 14,289 102.18 13,329 130.45
June 107.86 14,053 111.80 14,566 105.79 13,783 130.29
Source: Ceylon Petroleum Corporation http.//www.eia.gov./dnav/pet/pet_pri_spt_sl_d.htm Exchange Rate: Central Bank of Sri LankaNote: (a) Provisional
Ministry of Petroleum Industries 57
Tabl
e 7
Mon
thly
Pla
tts P
rices
of
Refi
ned
Petr
oleu
m P
rodu
cts
Janu
ary
- Jun
e 20
14 (a
)
Mon
th
92 O
ctan
e Pe
trol
95 O
ctan
e Pe
trol
Aut
o D
iese
lSu
per D
iese
l (b)
Ker
osen
e
Ex.
Rat
e(1
US$
= R
s.)
US
$ /
bbl
Rs.
/ bb
lR
s./
Litr
eU
S $
/ bb
lR
s./
bbl
Rs.
/ Li
tre
US
$ /
bbl
Rs.
/ bb
lR
s./
Litr
eU
S $
/ bb
lR
s./
bbl
Rs.
/ Li
tre
US
$./
bbl
Rs.
/ bb
lR
s./
Litr
e
Janu
ary
114.66
14,9
90
94.3
3 117.98
15,4
24
97.06
120.
9515,812
99.5
1 121.56
15,892
100.
01 121.63
15,9
01
100.
07
130.
73
Febr
uary
116.68
15,264
96.06
119.68
15,657
98.53
122.
9016,078101.18
123.
5516,163
101.
72 122.80
16,065
101.
10
130.82
Mar
ch116.53
15,2
22
95.80
119.
3715
,593
98.13
121.
1415,825
99.5
9 121.68
15,895
100.
03
119.
9915,674
98.64
130.63
Apr
il11
7.59
15,360
96.66
121.
3115,846
99.7
2 11
2.31
14,670
92.3
2 123.88
16,181101.83
120.
5515,746
99.1
0 130.62
May
117.96
15,388
96.84
121.
4315,841
99.69
121.
7515,882
99.9
5 12
2.35
15,961
100.
44 119.88
15,638
98.42
130.
45
June
120.
3315,678
98.66
123.
5916,103
101.
34 120.68
15,7
23
98.95
121.
1115
,779
99
.30
120.63
15,7
17
98.91
130.
29
Sour
ce:
Cey
lon
Petro
leum
Cor
pora
tion
E
xcha
nge
Rate
– C
entra
l Ban
k of
Sri
Lank
aN
ote:
(a
) Pro
visio
nal
(b
) Int
rodu
ctio
n of
Lan
ka S
uper
Die
sel F
our S
tar t
ook
plac
e in
pla
ce o
f Su
per D
iese
l with
eff
ect f
rom
22nd
Aug
ust 2
014.
58 Ministry of Petroleum Industries
Year
Typ
e of
Pro
duct
Ex.
Rat
e(1
US$
= R
s.)
90 O
ctan
e Pe
trol
(a)
95 O
ctan
e Pe
trol
Aut
o D
iese
lSu
per D
iese
l (b)
Ker
osen
eJe
t A-1
U
S $/
bbl
HSF
O
(180
C
ST)
U
S $/
bbl
LSFO
(1
80 C
ST)
US
$/bb
lU
S $
/bbl
Rs.
/bbl
US
$ /b
blR
s./b
blU
S $
/bbl
Rs.
/bb
lU
S $
/bbl
Rs.
/bb
lU
S $
/bbl
Rs.
/bb
l
2002
27.9
22,671
28.99
2,77
330
.09
2,878
29.26
2,79
929
.77
2,848
158.81
158.81
154.
9095.66
2003
33.64
3,24
734.68
3,34
732
.71
3,15
732
.31
3,11
932
.90
3,176
32.9
0169.93
165.85
96.52
2004
46.34
4,689
47.3
34,789
46.60
4,71
545
.79
4,633
47.61
4,818
47.61
183.78
175.
5110
1.19
2005
62.14
6,245
63.16
6,348
65.86
6,619
73.61
7,398
67.93
6,827
67.93
268.04
257.28
100.
50
2006
72.5
47,
541
73.3
57,626
78.06
8,115
77.0
28,007
80.66
8,386
80.66
318.16
307.81
103.96
2007
81.73
9,04
182.82
9,162
86.10
9,52
587.19
9,645
86.77
9,59
986.77
376.48
367.07
110.62
2008
101.
9511
,045
103.
2711,188
122.
0113,218
123.
3413,362
122.08
13,2
25122.08
515.
17499.80
108.33
2009
68.18
7,837
70.3
78,089
69.77
8,020
70.4
28,094
70.1
48,062
70.1
437
2.02
369.08
114.
94
2010
86.23
9,75
088.40
9,99
589.97
10,1
7290
.35
10,2
1590.18
10,196
90.18
470.
27462.61
113.06
2011
117.
4312,984
119.80
13,246
125.48
13,874
126.28
13,962
125.
7113,899
125.
71649.49
639.29
110.56
2012
120.26
15,346
123.
4215
,749
127.
3116,245
128.10
16,346
126.8
16,180
126.80
671.29
659.90
127.60
2013
116.03
14,981
119.
0015,364
122.
5515,822
123.
2715
,915
122.87
15,864
122.87
618.79
611.84
129.
11
Sour
ce :
Cey
lon
Petro
leum
Cor
pora
tion
Not
e:
(a) I
ntro
duct
ion
of P
etro
l of
92 O
ctan
e to
ok p
lace
in p
lace
of
Petro
l of
90 O
ctan
e w
ith e
ffec
t fro
m 1
st Ja
nuar
y 20
14.
(b
) Int
rodu
ctio
n of
Lan
ka S
uper
Die
sel F
our S
tar t
ook
plac
e in
pla
ce o
f Su
per D
iese
l with
eff
ect f
rom
22nd
Aug
ust 2
014.
Tabl
e 8
Plat
ts P
rices
of
Refi
ned
Petr
oleu
m P
rodu
cts
2002
-201
3
Ministry of Petroleum Industries 59
Year Quantity MT’000
C&F Value Rs.Bn
2007 156 12
2008 144 11
2009 146 10
2010 163 16
2011 180 20
2012 199 28
2013 (a) 197 27
Source: Central Bank of Sri LankaNote: (a) Provisional
Year Quantity MT’000
CIF Value Rs.Bn
2007 42.30 4.75
2008 59.30 5.38
2009 34.53 4.07
2010 43.87 6.36
2011 50.80 9.36
2012 44.59 8.82
2013 (a) 44.37 8.83
Source: Department of Sri Lanka CustomsNote: Data - HS Chapter 27HS Codes: 27101907,27101908,27101970,27101980
Table 9 Imports of Liquid Petroleum Gas 2007-2013 Table 10 Imports of Lubricants 2007-2013
60 Ministry of Petroleum Industries
Tabl
e 11
Pric
e R
evis
ions
of
Petr
oleu
m P
rodu
cts
2005
- Sep
tem
ber 2
014
(Rs.
/Litr
e)
Pr
oduc
t
Dat
e
92
Oct
ane
Petr
ol
(a)
95
Oct
ane
Petr
ol
Aut
o D
iese
l
Lank
a Su
per
Die
sel F
our
Star
(b)
Ker
osen
eIn
dust
rial
Ker
osen
e
Furn
ace
Oil
Nph
tha
500
Sec
800
Sec
1000
Se
c15
00
Sec
2000
Se
c35
00
Sec
05/05/2005
74.0
077
.00
46.00
51.3
028.50
30.80
34.80
31.7
030
.30
29.1
028.30
27.60
26.00
05/06/2005
80.00
83.00
50.0
055
.30
30.5
032.80
37.7
033
.30
32.80
31.4
030
.30
27.60
26.00
16/04/2006
88.00
91.0
058.00
63.30
38.50
40.80
45.7
041
.30
40.80
39.4
038.30
37.60
36.00
11/06/2006
93.0
096.00
61.00
66.30
43.5
045.80
50.7
046.30
45.80
44.4
043
.30
42.60
41.0
0
02/08/2006
96.00
99.0
064.00
69.30
45.5
047.80
52.7
048.30
47.80
46.40
45.3
044.60
43.0
0
05/09/2006
101.
0010
4.00
67.00
72.3
048.00
50.3
054
.70
50.3
049.80
48.40
47.3
046.60
45.0
0
28/09/2006
99.0
010
2.00
64.50
69.80
54.7
0
06/10/2006
97.0
010
0.00
62.00
67.30
52.7
048.30
47.80
46.40
45.3
044.60
43.0
0
26/10/2006
92.0
095
.00
60.00
65.30
50.7
046.30
45.80
44.4
043
.30
42.60
41.0
0
26/12/2006
58.30
50.7
0
01/01/2007
40
.30
39.9
038.70
37.7
0
35.65
05/01/2007
97.0
010
0.00
29/03/2007
104.
0010
7.00
19/04/2007
63.00
68.30
50.0
060.30
43
.30
42.9
041
.70
40.7
0
28/04/2007
105.
00108.00
65.00
70.3
0
12/05/2007
106.00
109.
0067.00
72.3
051
.00
61.30
46.30
45.9
044
.70
43.7
0
38.65
30/06/2007
111.
0011
4.00
71.0
076.30
67.00
68.00
50
.30
49.9
048.70
47.7
0
42.65
29/07/2007
117.
0012
0.00
75.0
080.30
68.00
69.00
54
.30
53.9
052
.70
51.7
0
46.65
Ministry of Petroleum Industries 61
Pr
oduc
t
Dat
e
92
Oct
ane
Petr
ol
(a)
95
Oct
ane
Petr
ol
Aut
o D
iese
l
Lank
a Su
per
Die
sel F
our
Star
(b)
Ker
osen
eIn
dust
rial
Ker
osen
e
Furn
ace
Oil
Nph
tha
500
Sec
800
Sec
1000
Se
c15
00
Sec
2000
Se
c35
00
Sec
14/01/2008
127.
0013
0.00
80.00
85.30
70.0
075
.00
63.90
61.70
56.65
25/05/2008
157.
0017
0.00
110.
0012
5.30
80.00
85.00
73.9
0
71.7
0
66.65
07/11/2008
142.
0015
5.00
80.00
95.3
060.00
65.00
53.9
0
51.7
0
45.0
0
06/12/2008
122.
0013
5.00
43.9
0
41.7
0
35.0
0
31/12/2008
120.
0013
3.00
70.0
085.30
50.0
055
.00
33.9
0
31.7
025
.00
25.0
0
02/07/2009
130.
00148.00
73.0
088.30
51.0
056.00
34.9
0
32.7
026.00
26.00
30/12/2009
115.
0013
3.00
01/09/2010
42.2
0
40.0
040
.00
40.0
0
02/04/2011
125.
0014
3.00
76.00
98.30
61.00
66.00
52.2
0
50.0
050
.00
50.0
0
30/10/2011
137.
0015
5.00
84.00
106.30
71.0
076.00
76.00
40.0
0
12/02/2012
149.
00167.00
115.
0014
2.00
106.00
111.
0090
.00
92
.20
90
.00
65.00
90.0
0
14/12/2012
159.
00167.00
115.
0014
2.00
106.00
111.
00
92
.20
90
.00
23/02/2013
162.00
170.
0012
1.00
145.
00
115.
00
01/04/2013
90.0
0
90.0
0
17/09/2014
157.
00165.00
118.00
140.
0086.00
92.2
090
.00
90.0
0
Sour
ce:
Cey
lon
Petro
leum
Cor
pora
tion
Not
e:
Sec
– Re
dwoo
d Se
cond
s
(a) I
ntro
duct
ion
of P
etro
l of
92 O
ctan
e to
ok p
lace
in p
lace
of
Petro
l of
90 O
ctan
e w
ith e
ffec
t fro
m 1
st Ja
nuar
y 20
14 a
nd p
rior t
o th
is da
te, d
ata
refe
rs to
Pet
rol o
f 90
Oct
ane.
(b
) Int
rodu
ctio
n of
Lan
ka S
uper
Die
sel F
our S
tar t
ook
plac
e in
pla
ce o
f Su
per D
iese
l with
eff
ect f
rom
22nd
Aug
ust 2
014
and
prio
r to
this
date
, dat
a re
fers
to S
uper
Die
sel.
Tabl
e 11
Pric
e R
evis
ions
of
Petr
oleu
m P
rodu
cts
2005
- Sep
tem
ber 2
014
(Rs/
Litr
e) C
ontd
.
62 Ministry of Petroleum Industries
Item
Uni
t20
0520
0620
0720
0820
0920
1020
1120
1220
13 (a
)
Avai
labl
e C
apac
ityM
W2,
411
2,43
42,
444
2,64
52,
684
2,81
73,
148
3,31
23,
371
Inst
alle
d C
apac
ityM
W2,
411
2,43
42,
444
2,64
52,
684
2,81
73,
148
3,31
23,
371
CEB
MW
1,75
81,
758
1,75
81,
758
1,75
81,
758
2,06
42,
214
2,24
2
Hyd
ro1,
207
1,20
71,
207
1,20
71,
207
1,20
71,
207
1,35
71,361
The
rmal
548
548
548
548
548
548
854
854
878
Oth
er3
33
33
33
33
Priva
teM
W65
167
468
488
792
61,
059
1,08
41,
098
1,12
9
Hyd
ro84
107
117
138
172
175
194
227
262
The
rmal
(b)
567
567
567
737
742
842
842
784
771
Oth
er0
00
1212
4248
8796
Uni
ts G
ener
ated
GW
h8,
766
9,38
89,
813
9,90
09,
881
10,7
1511
,528
11,8
0111
,953
CEB
5,33
75,
961
5,94
15,
786
5,45
06,
385
6,55
36,
162
8,80
8
Hyd
ro3,
173
4,29
03,603
3,70
03,356
4,988
4,018
2,72
76,010
The
rmal
2,162
1,669
2,336
2,083
2,09
11,
394
2,53
23,
433
2,796
Oth
er2
22
33
33
22
Priva
te3,
429
3,42
73,
872
4,11
44,
431
4,33
04,
975
5,63
93,
145
Hyd
ro27
734
534
4428
525
646
601
565
908
The
rmal
(b)
3,15
23,082
3,528
3,680
3,883
3,601
4,25
34,906
1,97
7
Oth
er0
00
623
8312
1168
260
Sour
ce: C
entra
l Ban
k of
Sri
Lank
aN
ote:
(a
) Pro
visio
nal
(b) I
nclu
sive
of In
depe
nden
t Pow
er P
lant
s (IP
Ps)
Tabl
e 12
Ele
ctric
ity G
ener
atio
ns 2
005
- 201
3
Ministry of Petroleum Industries 63
Tab
le 1
3C
PC’s
Sal
es to
Pow
er P
lant
s 20
08 -
2013
Year
Cey
lon
Ele
ctric
ity B
oard
Inde
pend
ent P
ower
Pla
nts
Aut
o D
iese
lN
apht
haFu
el O
ilA
uto
Die
sel
Fuel
Oil
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
2008
106,675
9,506
206,406
15,282
200,860
11,7
7720
4,59
720,669
655,056
42,1
17
2009
209,880
14,4
74160,515
8,093
204,651
5,21
415
1,37
110
,937
778,754
21,887
2010
103,182
8,146
78,455
4,22
9183,055
5,567
119,652
9,41
7689,175
23,7
39
2011
184,476
14,3
4067,131
4,51
220
2,79
78,112
171,087
14,0
0977
2,20
433,388
2012
251,
599
27,693
89,701
7,49
120
3,31
512,655
213,
443
21,0
94881,606
57,831
2013
39,650
4,778
104,
019
9,362
153,
240
12,832
28,823
3,436
401,668
33,889
Sour
ce:
Cey
lon
Petro
leum
Cor
pora
tion
64 Ministry of Petroleum Industries
Year
Cey
lon
Ele
ctric
ity B
oard
Inde
pend
ent P
ower
Pla
nts
Aut
o D
iese
lSu
per D
iese
lN
apht
haFu
el O
ilA
uto
Die
sel
Fuel
Oil
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Volu
me
(Litr
e’00
0)Va
lue
(Rs.
Mn)
Janu
ary
34,276
4,14
7
-
-
6,602
594
21,5
201,
937
20,4
242,
471
79,7
757,467
Febr
uary
22,0
142,664
-
-
19,169
1,72
519,756
1,778
32,840
3,97
456,692
5,21
1
Mar
ch34,862
4,218
-
-
6,584
593
20,803
1,872
24,5
912,976
66,478
6,245
Apr
il28,707
3,47
4
-
-
13
,007
1,17
116,877
1,51
927,876
3,37
345,060
4,13
3
May
13,0
341,
577
-
-
18,712
1,684
15,926
1,43
312,268
1,484
52,161
4,836
June
10,398
1,258
71
19,3
391,
741
11,966
1,07
77,436
900
35,4
713,
313
Tota
l14
3,29
117
,338
71
83,4
137,
508
106,
848
9,61
612
5,43
515
,178
335,
637
31,2
05So
urce
: C
eylo
n Pe
trole
um C
orpo
ratio
nN
ote:
(a
) Pro
visio
nal
Tab
le 1
4C
PC’s
Sal
es to
Pow
er P
lant
s Ja
nuar
y –
June
201
4 (a
)
Ministry of Petroleum Industries 65
Year
Cru
de
Oil
Inpu
t
Out
put
Petr
olA
uto
Die
sel
Supe
r D
iese
l (a
)
Furn
ace
Oil
Ker
osen
eC
hem
ical
N
apht
haBi
tum
enLP
GJe
t A-1
Solv
ent
Tota
l O
utpu
t50
0 Se
c80
0
Sec
1000
Se
c15
00
Sec
3500
Se
c
2000
2,260,680
212,766
736,422
-29,283
39,1
31177,546
207,
104
282,943
191,865
112,613
65,132
16,117
92,1
593,
373
2,166,454
2001
2,008,360
189,313
614,055
-26,138
33,5
72128,756
260,873
238,006
179,
139
104,
720
45,118
15,4
7089,294
2,21
41,926,668
2002
2,22
4,70
3226,161
702,216
-22,893
26,460
105,611
328,634
290,665
196,419
107,861
34,2
0518,161
72,1
191,853
2,133,258
2003
2,023,605
195,
523
606,558
5,01
324,806
36,503
64,109
326,238
269,154
153,
517
94,5
0040,625
15,4
4396,277
2,814
1,931,080
2004
2,216,646
202,630
632,651
24,834
17,0
0930
,117
73,7
5541
4,20
225
1,10
3143,808
97,2
7250
,315
15,460
126,378
4,11
32,083,647
2005
1,97
7,75
1160,684
571,169
7,19
020,580
37,408
68,054
336,271
236,749
142,
092
113,308
51,785
13,0
47113,831
4,04
41,876,212
2006
2,14
0,13
2193,585
628,210
-16,510
35,1
3588,063
372,985
253,
533
143,
930
109,
175
55,386
14,7
21130,926
5,878
2,048,037
2007
1,899,078
163,291
444,
593
--
100,
934
4,50
5393,850
272,380
97,4
0991,768
35,1
9716,237
171,
043
4,55
91,795,766
2008
1,868,346
163,702
451,
132
--
18,801
-468,002
244,
402
111,
133
100,416
45,4
5016,208
154,
433
2,562
1,776,241
2009
2,014,850
179,096
485,302
--
35,9
01-
462,577
282,048
82,513
105,
159
41,588
24,348
195,406
972
1,894,910
2010
1,75
2,71
515
7,97
244
1,54
5-
-47,918
-396,034
241,
930
92,7
7584,289
34,9
4522
,927
126,407
2,73
41,649,474
2011
2,003,561
206,466
501,
122
--
54,283
-480,854
244,758
92,9
2480,011
46,062
24,1
1515
5,35
73,814
1,889,766
2012
1,596,059
151,536
394,161
--
66,953
-364,607
217,
240
74,9
0969,841
26,548
17,4
3793
,159
3,699
1,480,090
2013
1,643,218
143,
959
389,717
--
56,011
-52
1,22
4146,550
57,2
9786,505
5,02
522,160
124,
544
2,987
1,55
5,97
9
Sour
ce:
Cey
lon
Petro
leum
Cor
pora
tion
Not
e:
(a) I
ntro
duct
ion
of L
anka
Sup
er D
iese
l Fou
r Sta
r too
k pl
ace
in p
lace
of
Supe
r Die
sel w
ith e
ffec
t fro
m 2
2nd A
ugus
t 201
4.
Tab
le 1
5O
il Pr
oduc
tion
by C
PC’s
Refi
nery
200
0 - 2
013
(MT
)
66 Ministry of Petroleum Industries
Product Quantity (a)
Crude Oil Input 901,438
Output 855,407
Petrol 79,166
Diesel 257,190
Furnace Oil 321,515
Kerosene 39,238
Naphtha 63,592
Bitumen 0
LPG 14,235
Aviation Fuel 79,189
Solvent (SBP) 1,282
Source: Ceylon Petroleum CorporationNote: (a) Provisional
Table 16 Oil Production by CPC’s RefineryJanuary - June 2014
Ministry of Petroleum Industries 67
Type
of
Exp
endi
ture
2006
2007
2008
2009
2010
2011
2012
Min
ister
’s O
ffice
Min
istr
yM
inist
er’s
Offi
ceM
inis
try
Min
ister
’s O
ffice
Min
istr
yM
inist
er’s
Offi
ceM
inis
try
Min
ister
’s O
ffice
Min
istr
yM
inist
er’s
Offi
ceM
inis
try
Min
ister
’s O
ffice
Min
istr
y
Rec
urre
nt E
xpen
ditu
re
Budg
etar
y Pr
ovisi
ons
17.08
21.65
41.9
438.74
39.5
0109.89
48.78
84.03
42.1
240
.47
45.26
46.67
52.9
947.62
Act
ual
Expe
nditu
re12.85
20.4
730
.31
29.9
237
.03
64.04
38.93
63.76
38.74
37.60
42.7
540
.72
48.63
45.88
% (A
ctua
l Ex
pend
iture
ou
t of
Prov
ision
s)
75.2
094
.50
72.3
077
.20
93.7
058.30
79.80
75.9
092
.00
92.9
094
.50
87.30
91.7
796.30
Cap
ital E
xpen
ditu
re
Budg
etar
y Pr
ovisi
ons
3.58
970.
3020
.41
268.00
13.66
276.50
2.05
257.
7210.87
3.45
10.0
31.80
4.45
6.40
Act
ual
Expe
nditu
re1.
5094
9.31
17.9
285.38
13.5
2116.59
0.13
80.25
10.5
01.16
9.44
1.64
0.95
4.75
% (A
ctua
l Ex
pend
iture
ou
t of
Prov
ision
s)
41.9
097.80
87.80
31.9
099
.00
42.2
06.30
31.1
096.60
33.60
94.1
091
.10
21.3
274
.07
Sour
ce:
Min
istry
of
Petro
leum
Indu
strie
s
Tabl
e 17
Min
istr
y’s
Exp
endi
ture
200
6 - 2
012
(Rs.
Mn)