RM Parks signs $110 million petroleum agreement with Sri Lanka

RM Parks Inc, a leading petroleum products distributor in the United States signed an agreement with the Board of Investment (BOI) for U$ 110 million to bring Shell products to Sri Lanka.

“RM Parks Inc. and Shell collaboration will operate 200 fuel stations and provide services of mini-supermarkets with EV charging facilities,” the BOI said in a post on X (formerly Twitter).

Last year, the Sri Lankan government decided to open up Sri Lanka’s fuel import and retail sales market to companies from oil-producing nations in a bid to address the foreign exchange crisis.

In March 2023, the Cabinet of Ministers gave the nod 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.

Accordingly, Earlier this year, an agreement was signed at the President’s Office, between the Government of Sri Lanka and RM Parks Inc., an international company operating in collaboration with Shell, marking a significant step towards securing a long-term contract for the importation, storage, distribution, and sale of petroleum products in the country.

RM Parks Inc. will be the fourth 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 Ceylon Petroleum Corporation (CPC),” the Power and Energy Minister said earlier.