Lanka signs deal with RM Parks, Shell to enter fuel market

COLOMBO: An agreement has been signed between the Government of Sri Lanka and RM Parks Inc., in collaboration with Shell Plc for a long-term contract for the importation, storage, distribution, and sale of petroleum products in Sri Lanka.

The Contract Agreement was signed at the Presidential Secretariat, following the recommendations of the Cabinet Appointed Special Committee, the President’s Media Division said.

“US-based petroleum company RM Parks in a collaboration with Shell PLC signed the agreement to enter the Sri Lanka petroleum business today. RM Parks will be the 4th supplier to enter the domestic market and will operate under the Shell branding.”

“They signed a 20-year agreement to import, distribute and sell petroleum products through 150 fuel stations allocated from CPC,” Sri Lanka’s Minister of Power and Energy Kanchana Wijesekera said.

In a tweet, he said that approval was also granted for 50 new fuel stations to be established island-wide and that they will upgrade the fuel stations with new automated dispensers, electric charge stations, mini markets and cafes.

In March, the Cabinet of Ministers had granted approval to award licenses to China’s Sinopec, Australia’s United Petroleum and RM Parks of the USA, in collaboration with multinational oil and gas company – Shell plc, to enter the fuel retail market in Sri Lanka.

Thereby, they are be granted a license to operate for 20 years to import, store, distribute and sell petroleum products in Sri Lanka.

In June 2022, the Cabinet of Ministers had green-lighted the proposal to open up Sri Lanka’s fuel import and retail sales market to companies from oil-producing nations.