Sri Lanka: Bids called for oil exploration off Mannar

Tuesday, 16 October 2007

The Petroleum and Petroleum Resources Development Ministry has called for tenders for oil exploration in the Mannar Basin. Three blocks have been identified in the area, based on the data provided by TGS NOPEC, the Norwegian company which conducted seismic surveys in the Basin.

Petroleum and Petroleum Resources Development Minister A H M Fowzie said that once the tender process is completed, they intend to commence exploration activities in the basin from August, 2008. "Our objective is to produce our own crude oil by the year 2010 through oil exploration in the Mannar Basin," he said. Following this, the government will shortly call for tenders to conduct seismic surveys along the Hambantota sea belt with a view to explore for oil deposits in Sri Lanka's southern territorial waters. Mr. Fowzie said that the ministry were awaiting the green light from the cabinet to initiate the tender process which follows similar surveys along the eastern sea belt. "Once the proposal is approved by the cabinet, we will call for expressions of interest from companies specialising in surveys for oil resources. The government will then sign a Memorandum of Understanding with the selected company," he said.

According to the Minister, the Treasury has agreed to allocate Rs. 6.5 million for conducting the surveys in the sea off Hambantota.

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