MUSCAT: Oman’s Ministry of Oil and Gas and India’s Accord Group have signed a $3.85 billion deal to build an oil refinery in Sri Lanka, the biggest single pledge of foreign direct investment ever made in the country, according to Reuters.
Sri Lankan officials said the 200,000 barrel-per-day refinery will be built on 585 acres near the site of the new Hambantota international port and a related industrial zone on the nation’s southern coast.
The refinery, construction of which is expected to begin on March 24 and be completed in 44 months, is set to produce 9 million metric tonnes of refined products a year for export from the Hambantota port, which serves the busiest East-West shipping route.
Privately owned Accord Group will control 70 percent of the joint venture and the Sultanate of Oman’s Ministry of Oil and Gas the rest.
Accord’s ownership comes through a Singapore investment vehicle which is 90-percent owned by its Silver Park International Pvt Ltd operation.
The refinery will be Chennai-based Accord’s first foray into oil refining. Its current interests include power generation, brewing and healthcare.