Chevron Lanka PLC to supply lubricant oil to Sapugaskanda plant

Chevron Lanka PLC, a subsidiary of the US based lubricant company is to be awarded the contract to supply 1.1 million litres of lubricant oil to the Sapugaskanda Power Plant for the year 2017/2018.

In July, a proposal was submitted to Cabinet to obtain approval for the Tender on purchasing lubricating oil for the Sapugaskanda power plant run by the Ceylon Electricity Board (CEB). At the time, it was suggested that the Ceylon Petroleum Corporation (CPC) be approached for the lubricant and a Joint Committee comprising of CEB and CPC officials was formed to discuss the possibilities of such a venture.

The Joint Committee revealed that “lubricating oil of the prescribed specification of the plant manufacturer should only be applied for this power plant and that the particular type of lubricating oil was not manufactured in the CPC”. Thus the CPC was not in a position to supply the oil.

CPC officials however have decided to look into the possibility of manufacturing this particular type of lubricating oil in the CPC and discussions with the CEB are to continue.

The lubricating oil needed for Sapugaskanda is called Taro 40 X L 40 and according to the recently approved agreement, Chevron will supply the lubricant at a rate of Rs 234.43 per litre.

The Sapugaskanda Plant A requires 800,000 litres which will cost a total of Rs 187,544,000 + 15 percent VAT, Plant B requires 300,000 litres which will cost a total of Rs 70,329,000.000 + 15 percent VAT and for unplanned urgent requirements they will purchase 110,000 litres at a total cost of Rs 25,787,300.00 + 15 percent VAT.

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