BP Singapore in talks with Ceypetco over rejected Jet Fuel Cargo
May 14, 2012 02:00 pm
BP Singapore Pte. Ltd., a unit of BP PLC (BP), said Monday that it was in talks with Ceylon Petroleum Corp., or Ceypetco, on the issue of supplying jet fuel of incorrect specifications.
Ceypetco had rejected 7,500 metric tons of a 20,000-ton jet fuel cargo after conducting a chemical analysis.
The analysis and laboratory tests reportedly showed that the fuel was “contaminated” and didn’t meet the quality assurance standards, several media reported.
However, BP said in a statement to Dow Jones Newswires that the cargo was tested by an agreed independent inspector and found to meet the required specifications.
Ceypetco officials couldn’t be reached for comment. The company didn’t reply to an emailed query.
The Sri Lankan government has received a discount of over LKR1.7 million for the rejected portion of the cargo, which will be used as kerosene, cabinet spokesman Lakshman Yapa Abeywardena earlier said.
Ceypetco has also taken measures to recover $12,000 for each of the three days of delay by the ship, which belongs to the Singaporean company that brought the oil, Dow Jones Newswires reports.