Oil exploration to begin next year

by L. S. A. Wedaarachchi

The oil and gas exploration in the Mannar Basin of Sri Lanka's west coast will commence in the middle of next year. The Secretary - Ministry of Petrolium and Petrolium Development A. P. A. Gunasekera said that the bids for the oil and gas exploration in Mannar Basin will be received on or before January 31, next year which is the closing date of the tender.

The Sri Lanka government called worldwide tenders for three exploration blocks in the Mannar Basin in May last year.

The bid documents were issued last September and it was available in the PRDS website. The Director General Petroleum Resources Development Secretariat (PRDS) Dr. Neil R de Silva said that road shows and Presentations on investment climate and the oil and gas potentiality in the West Coast of Sri Lanka were held in London, Houston and Kuala Lumpur last year.

According to Dr. Neil R De Silva, bids schedule will be prepared immediately after the closing date of the tender and thereafter it will be submitted for the Cabinet approval. The number 2, 3 and 4 blocks of the Mannar Basin will be given to the successful tenderer and number one block has been already offered to the Indian government.

Last week Cabinet approval was given to Ministry of Petrolium Resources to issue exploration blocks in the cauvery basin area which borders on part of Notheren Sri Lanka and Southern India.

Sri Lanka's initial exploration of oil and gas began fourty years ago at the cauvery basin.

The seismic data provided by an internationally reputed Norwegian firm has confirmed the potential for viable oil resources in the Mannar Basin of the west coast of Sri Lanka.