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| Sunday, 25 July 2004 |
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Search for black gold by Anton Nonis Initial investigations carried out in northern Sri Lanka to explore off-shore oil have proved satisfactory according to Director General of Petroleum Resources, Titus Jayawardene. It is suggested to probe nine areas for drilling. Candidates for the bidding would be selected by a tender procedure early next year. Seismic surveys were done in the Gulf of Mannar Basin by a Norwegian firm, TGS of Nopec. Explorations on the Gulf of Mannar Basin will extend upto Galle. Satellite gravity surveys covering the entire island and the Exclusive Economic Zone (EEZ) were done by a Swedish firm, Petroscan. Both these surveys had cost two million US dollars which were borne by the two foreign companies. Jayawardene said the `Petroleum Resources Act' has already been drafted and approved by the Parliament. Region for exploration will be 50 kilometres of shore. It has been estimated that the exercise would cost more in the Gulf of Mannar area as the water is deep compared to that of the Palk Bay which, is shallow. The drilling of a `test well' is estimated to cost around US$ 15m. Countries that bid for the drilling will have to agree to bear all expenses which it will be on a profit-sharing basis, Jayawardene said. |
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