Lanka IOC resumes lube blending plant construction

Indian Oil Corp.’s local unit in Sri Lanka, Lanka IOC (LIOC), plans to soon resume construction work on its lube blending plant after it was delayed in the wake of the worsening security situation in the eastern seaport town of Trincomalee, a senior official said. LIOC’s Managing Director K. Ramakrishnan said construction work will resume soon and will be completed by June 2007. With an annual production capacity of 18,000 metric tons, the plant is expected to help LIOC save money on importing finished lubricants. The US$5 million blending plant is being built on a site where Lanka IOC has an oil storage facility. The estimated US$60 million lube market is dominated by ChevronTexaco, whose local operation is called Caltex Lanka Lubricants Ltd. (August 17, 2006)