Arrangements are being made by the Sri Lanka Port Authority (SLPA) for the operation of the Bloemendhal Oil Depot as an 'Oil Bank.' It is expected to service all parties who have bunkering licenses on equal terms as directed by the Lanka Marine Services Ltd (LMSL) Supreme Court judgment.

The Sunday Times FT learns that a meeting was held between the SLPA and licensed bunker supplier on the Bloemendhal Oil Depot on August 29 in which nine of the senior management at the SLPA were present including its Chairman, Vice Chairman, Managing Director, Directors, a Legal Consultant and the Special Advisor. Also present at the meeting were Romesh David and Zafir Hashim from LMSL as well as 12 other licensed bunker suppliers representing Moceti International (Pvt) Ltd, CSC Kandia (Pvt) Ltd, Lanka Maritime Service, Lanka IOC (Pvt) Ltd, Ceylon Petroleum Corporation, Inter Ocean Energy (Pvt) Ltd, Lanka Bunkering Service (Pct) Ltd and Sri Lanka Customs.

Informed sources said the SLPA and the licensed bunker suppliers (forming an Association of Licensed Bunker Operators in Sri Lanka) agree to abide by the conditions stipulated in the Supreme Court judgment and mutually agreed to several conditions. The first is that the SLPA will own, operate and administer the Bloemendhal Oil Depot as an Oil Bank to licensed bunker supplier having a valid licence as on July 21, 2008. The Oil Depot, licensed as a public bond, is located at 69 Walls Lane, Colombo 15. JCT Company Limited, a wholly owned company of the SLPA will run the facility. The SLPA and JCT will be permitted to participate in the storage and supply of bunkers as and when necessary.

Each licensed bunker supplier will be allocated an equal amount of bunker oil per allocation cycle.
Licensed bunker suppliers may supply bunker oils to the Oil Bank from whatever source – imports through the port, refinery product from Kollonnawa, etc. The Oil Bank will provide storage facilities, handling facilities and the use of the pipe lines to the South Jetty and will operate the South Jetty to supply barges provided by the licensed bunker suppliers, it was stated at the meeting, the sources said.

The bank will provide proper accounting of bunker oils of different parties, recording receipts and issues of bunker oils, and bill the customers on storage space and storage time and on handling services on rates. The tariff rates will be subject to review and revision after three months of operation.
Any services the licensed bunker supplier utilizes from the SLPA will have to paid for separately to the SLPA in keeping with the SLPA's Port Tariff. The Oil Bank will accept the storage of lubricants as bonded cargo for a charge.

The method of collection / re-storing / accounting etc. of bunker oils captured in pipe lines during operational procedures will be decided on by the Association of Licensed Bunker Operators of Sri Lanka.
The storage of bunkers oils is at the owner's risk. The Oil Bank will obtain liability insurance cover for the facility comprising the tanks and premises. The licensed bunker suppliers are required to obtain adequate insurance cover for their cargo of bunker fuels that will be contained in the premises.