|
|
 |
 |
| Sunday, 6 April 2003 |
 |
|
 |
News |  |
| News Business Features Editorial
|
'Black gold' exploration in Mannar, H'tota by ELMO LEONARD Exploration for oil in the coasts of Mannar and Hambantota is to begin soon. The first theatre of importance is Mannar, where reports indicate Sri Lanka will very likely hit black gold. Minister of Power and Energy, Karu Jayasuriya, is expected to present a proposal for the exploration of oil, in Parliament this month. Since 1970s there has been reports about the existence of oil in some locations, around the coasts. A few seismic surveys have been carried out, including a survey around the coasts of Mannar, by a Canadian company, who in the mid-1980s had favourable responses. What is termed as Phase II of seismic surveys is expected to begin shortly, following an Act of Parliament. Worldwide tenders are to be called to conduct the survey, Minister Jayasuriya said. Simultaneously, the Ceylon Petroleum Corporation will launch a website, to this effect. All previous evidence points to the Kovari Basin, along the Palk Strait, where Sri Lanka is most likely to hit black gold. Around 65 percent of the Kovari Basin is within the Indian Exclusive Economic Zone (EEZ), where oil exploration is ongoing. The balance 35 percent is inside Sri Lanka's EEZ. It is also expected that 'Petrocan', a Swedish geophysical company, will conduct a satellite gravity survey within a selected offshore area around Sri Lanka, with the objective of locating new sedimentary structures that may be of hydrocarbon bearing. Petrocan would be bound by the Petroleum Reserves Agreement, being formulated by the Ceylon Petroleum Corporation, a spokesman for the Energy Ministry said. The survey will cover an area of 302,000 square kilometres at a cost of US$ 605,000. Of the total cost, a sum of US$ 325,500 would be borne by Petrocan, and US$ 192,000 by the Swedish government aid agency, SIDA, out of funds allocated to Sri Lanka. Under this agreement entered into in January 2002, Petrocan submitted its technical report to the Ceylon Petroleum Corporation in July 2002. A final report was submitted in January 2003. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
