Sri Lanka to claim damages from Vitol

Switzerland-based energy trader Vitol is facing claims of up to US$1.7 million by Ceylon Petroleum Corp. (Ceypetco) on high sulfur fuel oil it supplied in late August which the Sri Lanka state-run refiner says was contaminated, a senior official at Ceypetco said. The Ceypetco official added that Vitol has been taken off its list of registered suppliers immediately after the company received complaints of contamination from power producers. The problem came to light when six or seven major power plants and dozens of Ceypetco’s “bulk customers” complained of engine damage immediately after using the product supplied by Vitol. (October 8, 2009)