The Project

The existing refinery, built in 1969, is a Hydro-Skimming Refinery with an original design capacity of 35,000 bbl/d. A limited expansion was carried out later, increasing processing capacity to 50,000 bbl/d to meet domestic petroleum fuel demand.

New conversion processes will be introduced to upgrade residual oil—which has low market value—into fuels that meet current environmental standards. Once completed, the project will enable the country to save a substantial amount of foreign exchange.

Funds

The project is expected to be financed by the Government of the Islamic Republic of Iran through a concessionary loan package, as per the heads of agreement signed in April 2008.

Project Office

The project office of the Sapugaskanda Refinery Expansion and Modernization (SOREM) Project was officially opened on 20th February 2009 at the Sapugaskanda Refinery premises by Hon. Minister of Petroleum and Petroleum Resources Development A.H.M. Fowzie. The ceremony was attended by Hon. Minister Duminda Dissanayake, Mr. W.B. Ganegala (Secretary to the Ministry), Major General Asoka Thoradeniya (Chairman/Managing Director of CPC), and other officials.

Consultant

FEED works are expected to commence with the assistance of an internationally reputed consultancy firm soon after the project office becomes fully operational. Land acquisition for the additional space required for the project is now nearing completion.