CrackitToday App

Trincomalee Oil Tank Farms: India and Sri Lanka

Trincomalee Oil Tank Farms:

In the coming days, India and Sri Lanka are going to sign the long pending deal to jointly develop the Trincomalee oil tank farms.

  • The signing of the deal will reflect a positive sign, amidst strained relationship between the two countries.

About Trincomalee Oil Tank Farms:

  • The oil tank farm was built by the British during World War II as a refuelling station,
  • It is located in ‘China Bay’ in close proximity to the internationally coveted deep water natural harbour of Trincomalee.
  • The proposal of this joint development was envisaged 35 years ago, in the Indo-Lanka Accord 1987.
  • It comprises 99 storage tanks, with a capacity of 12,000 kilolitres each, spread across Lower Tank farm and Upper Tank Farm.
  • In 2003, Indian Oil Corporation set up its Sri Lankan subsidiary called Lanka IOC, to work on this oil farm.
  • Currently, Lanka IOC runs 15 tanks. The new agreement is being negotiated for the remaining tanks.