US-based RM Parks signs $110mn petroleum agreement with Sri Lanka

RM Parks Inc., a leading petroleum products distributor in the United States, has signed a USD 110 million agreement with the Board of Investment (BOI) of Sri Lanka to bring Shell PLC products to the island.

“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. The Petroleum Products (Special Provisions) Bill also received the approval of ministerial consultative committee on power & energy, paving the way for new suppliers to enter the local fuel market as importers, distributors, and retail operators for petroleum products.

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.

Later in June, a 20-year agreement was inked between the Sri Lankan government and RM Parks Inc. in collaboration with Shell PLC for a long-term contract for the importation, storage, distribution and sale of petroleum products on the island.