Lankan delegation to brief prospective investors on oil exploration

by Lalin Fernandopulle

A four-member Lankan delegation will represent the country at the annual offshore Energy Conference in Houston, Texas USA early next month to promote investment opportunities on oil exploration in Sri Lanka.

The delegation will comprise Petroleum and Petroleum Resource Development Minister A.H.M. Fowzie, Director General Petroleum Resources Exploration Dr. Neil de Silva, US Ambassador Robert Blake and Managing Director Caltex Lubricants Lanka Ltd., Kishu Gomes.

The Lankan delegation will brief prospective investors on opportunities for petroleum exploration in the country at a breakfast meeting on May 1 where over 600 representatives of oil companies are expected to attend.

Gomes who will be representing the private sector said that he would speak on the investment climate in Sri Lanka and the opportunities for oil exploration.

"Despite a war scenario the economy has been resilient and the business environment has improved over the years.Performance of Blue Chips such as John Keells, Hayleys and the banking sector during the past five years will be an encouraging factor for prospective investors", Gomes said.

Petroleum Resources Minister A.H.M. Fowzie said the global energy conference will be an occasion to seek the views of experts in the energy sector to conduct Sesmic surveys on oil deposits.

The Minister said the Ceylon Petroleum Corporation (CPC) incurs a massive subsidy loss and explorations are the best way to overcome the energy crisis in the country.

Industrial chambers have been ardently promoting petroleum explorations and urging the Government to expedite the process to reduce the cost of production and cut down the import of costly thermal power.

Dr. Neil de Silva will speak on the hydro carbon potential of the Mannar Basin. He said the energy conference will be an ideal platform to capture the interest of fuel and gas companies on oil exploration.

He said steps have been taken to go ahead with the licensing rounds. Lanka Indian Oil Corporation (LIOC), has shown interest in participating in the exploration project and awaits the call for bids.

Managing Director LIOC, K. Ramakrishnan said the company is keen in getting involved in the exploration work and help the country to save foreign exchange.

The Government plans to start the bidding process in July this year. The cost of the survey results providing information on petroleum exploration opportunities is US$ 1 million.

Oil prices have been a huge burden for consumers and the economy. Analysts believe that oil explorations will reduce the quantum of imports and reduce the annual expenditure.

The Ceylon Petroleum Corporation increased the price of petrol and diesel by Rs. 7 and Rs.3 while the LIOC which increased the price of diesel by Rs. 3 per litre in April has sought approval for a further increase of Rs. 7.

India and China have been selected to carry out explorations in the Mannar Basin.

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