The Hon. Anura Karunathilaka - Minister of Ports and Civil Aviation and Minister of Energy

¶ 01 Hon. Speaker, the response under Standing Order 27(2) is as follows.

¶ 02 1. Twelve suppliers were registered in the past 12 months: - Nayara Energy Singapore Pte. Ltd. - Welbred Trading, UAE - Abu Dhabi National Oil Company (ADNOC) - Chevron USA Inc., Singapore Branch - Petrolimex Singapore Pte. Ltd. - Penthol SA, Switzerland - Petraco Energies DMCC, UAE - KB Oil DMCC, UAE - Chevron USA Inc., Singapore Branch (for specific products) - Trafigura Pte. Ltd., Singapore - TOTSA TotalEnergies Trading SA - Petco Trading Labuan, Malaysia - Aramco Trading Company (Saudi Aramco)

¶ 03 2. Pursuant to Cabinet approval to procure from an unregistered new supplier, a default occurred: Verrington UAE, in April 2026. They attempted to alter agreed conditions seeking advance payment; CPC rejected this as standard practice requires Bid Security and Performance Security with payment after technical acceptance. CPC has notified the company of its displeasure by email regarding failure to meet stipulated conditions.

¶ 04 3. Action: CPC rejected altered terms, did not proceed under their requested prepayment, and notified breach of agreed procurement conditions. Further contractual remedies are being pursued per CPC’s standard conditions.

¶ 05 4. Long-term (term) and spot/short-term procurements:

¶ 06 Term tenders (refined products) operational from 2025-01-01 to 2026-05-06 (multiple awards active).

¶ 07 Crude oil term contracts (Murban Crude): - ICR/TERM/CRUDE OIL/MURBAN/2024-2025 (A): 15/11/2024–14/04/2025 - ICR/TERM/CRUDE OIL/MURBAN/2024-2025 (B): 15/11/2024–14/04/2025 - ICR/TERM/CRUDE OIL/MURBAN/2025 (A): 01/04/2025–31/08/2025 - ICR/TERM/CRUDE OIL/MURBAN/2025 (B): 01/09/2025–31/12/2025 - ICR/TERM/CRUDE OIL/MURBAN/2026 (A): 01/01/2026–30/04/2026 - ICR/TERM/CRUDE OIL/MURBAN/2026 (B): 15/04/2026–14/08/2026

¶ 08 Refined product term contracts (examples): - BK/TERM/GASOIL (0.05%/1.5)/DTB – MUTHU/2024-2025: 15/12/2024–14/06/2025 - BK/TERM/GAS OIL (0.05%/1.5)/DTB – MUTHU/2025: 01/06/2025–30/11/2025 - BK/TERM/GASOLINE 92 UNL/DTB – MUTHU/2024-2025-A: 01/12/2024–31/05/2025 - BK/TERM/GASOLINE 92 UNL/DTB – MUTHU/2024-2025: 15/07/2024–14/01/2025 - BK/TERM/GASOLINE 92 UNL/DTB – MUTHU/2025: 15/04/2025–14/10/2025 - BK/TERM/GASOLINE 92 UNL/DTB – MUTHU/2025-2026: 15/09/2025–14/03/2026 - BK/TERM/GASOIL/DTB – MUTHU/2025-2026: 15/12/2025–14/06/2026

¶ 09 Spot/short-term tenders (delivery windows): - 18/21/2026: Diesel & Jet A-1 – 30–31 March 2026 - 18/15/2026: Diesel – 6–7 April 2026 - 16/18/2026: Diesel & Super Diesel – 7–8 April 2026 - 18/19/2026: Jet A-1 – 10–11 April 2026 - 18/16/2026: Fuel Oil – 12–13 April 2026 - BK/20/2026: Petrol 92 – 17–18 April 2026 - BK/17/2026: Petrol & Super Petrol – 29–30 April 2026

¶ 10 5. Technical and commercial evaluation criteria are as per internationally accepted standards and tailored to CPC’s infrastructure compatibility across 48 facilities. The detailed criteria are provided in Annex 018, tabled in the Library. International comparisons can be provided if specific countries and their procurement frameworks are identified.

¶ 11 6. Decisions during a term contract’s validity are subject to SCAPC approvals and CPC procedures. A comparative statement of term prices vs. spot prices can be prepared and provided to the House upon compilation.

¶ 12 7. Data on the three highest-priced deliveries—number of bids and awarded suppliers—will be compiled and furnished to the House.

¶ 13 8. Regarding Sapugaskanda Refinery: Murban crude is currently used for crude supply. A detailed comparison of yields, refining costs, and end prices between Iranian Light and Murban will be prepared and submitted, considering operational constraints and configuration.

¶ 14 9. Where Cabinet Procurement Committee recommendations differed from Technical Evaluation Committee recommendations, records exist within CPC’s procurement files. Post-procurement audits for high-value purchases are conducted; pertinent audit reports can be tabled subject to confidentiality and commercial sensitivity protocols.

¶ 15 Murban crude supply has been maintained under term contracts for the stated periods. The CPC maintains standard protections via bid and performance securities and adheres to its established payment practices.

¶ 16 Annexes have been placed in the Library.