Performance Report - 2014

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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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


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


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.


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).


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

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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).


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)



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)


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).



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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North America Central and South AmericaEurope EurasiaMiddle East AfricaAsia and Oceania

2008 2009 2010 2011 2012 2013 (a)Year




02 China 10,117

03 Japan 4,563

04 India 3,509

05 Russia 3,320

06 Brazil 3,097


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.


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)


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)


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


US$

/bbl

MonthPlatts Market Price Brent Market Price WTI Market Price

110

112

114

116

118

120

122

124

126


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


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%


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


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.


Figure 1.12 Retail Sale Prices of Petroleum Products as at 31st December 2005-2013


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


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


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.


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.


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.


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



SECTION II

PERFORMANCE



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


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.


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


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


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


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.


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


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.


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


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.


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%


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.


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).


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.


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


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.


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


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.


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.


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


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



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


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



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



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.


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


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




2013

Actual for 2013 %


2014 (a)


(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


Table 2.20 Capital Expenditure of the Office of Hon. Ministers 2013 - June 2014 (Rs. Mn)



2013

Actual for 2013 %


2014 (a)


(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


Table 2.21Capital Expenditure of the Ministry

2013 - June 2014 (Rs. Mn)



2013

Actual for 2013 %


2014 (a)


(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


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



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)


Table 2.23 CPC’s Income Statement2012 - 2013 (Unaudited)


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


Table 2.24 CPC’s Balance Sheet2012 - 2013 (Unaudited)


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


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


Table 2.26CPC’s Balance Sheet

(Unaudited) January - June 2014 Rs. Mn



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


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



APPENDIX



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


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


Table 1 World Proved Reserves of Crude Oil 1980 -2013 (Bn.bbl)


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


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.


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


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


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


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

.


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


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


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

)


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

)


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


Table 16 Oil Production by CPC’s RefineryJanuary - June 2014


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)

Documents

Performance Report - 2014