Petroleum Corporation incurs massive loss of 1160 million

Petroleum Corporation incurs massive loss of 1160 million

The Ceylon Petroleum Corporation (CPC) has recorded a massive loss of 1,160 million rupees as a result of signing an agreement with PV (Petroleum Vietnam) Oil Singapore, alleges the Coalition against Corruption. The agreement relates to the import of petroleum products.

Agreements are signed for the purpose of covering possible surcharges when urgent purchases are made. The agreements also are intended to avoid the export of contaminated oil while assuring quality products and obtaining oil at reasonable prices.

The Coalition against Corruption insists that the transaction with PV Oil Singapore tantamount to “nothing but heinous crime and blatant corruption” and that although the relevant authorities have been informed of the position, action had been taken to extend the contract, clearly indicating that the corrupt practices will continue.

During 2011 and 2012, the CPC imported 320,000 metric tons of in eight shipments from PV Oil Singapore under the signed agreement. The Coalition points out that with the PV Oil Singapore manipulated the provisions to their advantage resulting in CPC having to bear an additional cost amounting to USD 8,935,428.94. “Thus a colossal loss amounting to a thousand million rupees had to be incurred by CPC leading to a blatantly corrupt transaction, the Coalition points out.

“Despite all the heavy losses and vehement opposition by the trade unions, it has been decided to extend the agreement with OV Oil Singapore for a further period of six months to purchase 480,000MT to 500,000MT of gas oil with amended terms and conditions which are more detrimental and disadvantageous to the CPC”, the Coalition says. “This would give PV Oil an extra USD 5 or more per barrel with CPC losing a minimum of USD 1.5 million per shipment on average.”

The Coalition further points out that CPC has negotiated a deal to obtain 135,000 MT of crude oil from Oman Oil Company through PV Oil Singapore. This deal has also been termed another fraudulent activity on the part of the CPC.

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