Petrotahlil-DMK’s Jagathrakshakan Swamikannu travelled to Sri Lanka for record FDI oil refinery deal signing
So far, there has been no official word on the Indian interest in the project.
The project is expected to be built over a period of a little over 40 months.
Senior DMK leader Jagathrakshakan Swamikannu travelled to Sri Lanka for a deal signing related to a $3.8 billion oil refinery built by a joint venture between the Omani oil ministry and Silver Park International, a Singaporean company linked to him that is funding 70% of the equity capital for project near the Hambantota port in the island nation, said people in the Sri Lankan Government.
An official with the Sri Lankan Government aware of the deal ceremony on March 13 told ET on the phone: “Jagathrakshakan [DMK senior politician] was in Sri Lanka along with his family for the deal signing. He was accompanied by three family members.” Jagathrakshakan was unavailable for comment. Calls to his personal secretary did not elicit any response.
The participation of Jagathrakshakan, Lok Sabha candidate for the Arakonam seat with DMK, in the multi-million FDI Project in the neighbouring nation has aroused interest.
So far, there has been no official word on the Indian interest in the project. The deal was announced on Tuesday last when Board of Investments, Sri Lanka, as a response to a media report about the Omani Ministry of Oil and Gas denying being part of the deal.
The BOI said it was aware there was no agreement signed between the Omani Ministry of Oil and Gas, equity partner for the project, and Silver Park, but the Oman Oil Company had “registered its firm intention to participate in equity up to 30%, subject to reaching agreement between the parties.”
The statement also said Silver Park has conveyed its “full confidence in implementing the project.”
"We are aware that Oman Trading International is willing to supply the entire feed stock requirement of the project as well as do the marketing for the products, upon reaching mutually agreed terms," BOI said in the statement.
According to documents purchased by ET from the Singaporean company regulator ACRA, Silver Park was registered in June 15, 2017. It had Jagathrakshakan Swamikannu as a Director from incorporation till September 2018, after which he "ceased" to hold the position.
According to the document, Jagatrakshakan ceased being a Director on September 15 and a shareholder on September 17 of 2018, nearly six months ahead of the finalization of the deal.
According to data from ACRA, Jagathrakshakan's son Sundeep Anand, daughter Srinisha and wife Anusuya are still directors. Jagathrakshakan’s daughter and wife were made directors of Silver Park on the day he resigned as Director of the company. The company has its registered address at Roberts Lane, Goodland Building, Singapore.
Sri Lanka held the ground breaking ceremony for the oil refinery on Sunday morning in the presence of Prime Minister Ranil Wickremesinghe.
According to people aware of the ground breaking ceremony Mohammed bin Hamad Al Rumhi the current Minister of Oil and Gas in the Sultanate of Oman and the Chairman of the Board of Directors of Petroleum Development of Oman flew in to participate in the event.
The oil project is expected to generate employment of close to 500-600 people and is envisaged as an export oriented unit. The project is expected to be built over a period of a little over 40 months.
Sri Lankan Government officials say it is the largest FDI project in the country so far. In December 2017, Sri Lanka handed over the Hambantota port, which will be in proximity to the oil refinery, to China on a 99-year lease