Malaysia’s Hyrax Oil plans to invest USD 30 million in a four-million liter per month lubricant blending plant in Muthurajawela in western Sri Lanka.
Three agreements were signed last week between Hyrax Oil and Sri Lanka’s petroleum authority, Ceylon Petroleum Corporation (CPC), for a period of 20 years.
The signing was witnessed by the Malaysian Minister of International and Trade Industry Datuk Seri Mustapa Mohamed and the Sri Lankan Minister of Petroleum Resources Development Chandima Weerakkody.
The three agreements that were signed are for a build, operate and transfer (BOT) agreement, a supply agreement and a land lease agreement. Hyrax Oil will construct the plant and subsequently manufacture lubricants for CPC for 20 years.
The 2.02 hectare plant is Hyrax Oil’s second plant outside of Malaysia. Its first joint-venture plant is located in Johannesburg, South Africa.
According to Hyrax, construction of the plant will start within two months, and it is expected to be completed within a year.