Sri Lanka’s Cabinet has approved a contract for the purchase of three shipments of Murban crude oil from November 15, 2024, to April 14, 2025, to Vitol Asia (Singapore) Pte Ltd. The agreement, as stated by a government release, involves acquiring 2,100,000 barrels of Murban crude, with a margin of ±5%, on a payment basis of 30 days through a Letter of Credit issued by the Bank of Ceylon.
The State-owned Ceylon Petroleum Corporation invited bids from registered suppliers for this long-term contract and received five submissions. The bid from Vitol Asia (Pte) Ltd was selected as the most responsive by the cabinet-appointed special standing procurement committee.
Murban crude is known to be lighter and less dense compared to Brent crude oil.