The Hindu Business Line : Lanka offers oil block to India

Sri Lanka has offered an oil exploration block to India in Mannar near Cauvery basin. "Out of eight exploration blocks identified, we have given one block to the Indian Government on nomination basis and another to Chinese Government. The balance will be given through bidding process in three months time," Mr A.H.M. Fowzie, Minister of Railways, Transport, Petroleum and Petroleum resources, said.

Speaking to mediapersons at the sidelines of the Petrotech-2007, he said Sri Lanka was planning to double the capacity of its existing 50,000 barrels per day (bpd) refinery and has been given the go ahead to a UAE company to set up another 100,000 bpd. This is even while the country was firming plans for oil and gas exploration.

As regards the delay in awarding the exploration blocks, it was said to be because of the fact that Sri Lanka had changed the exploration policy and the consultants TGS-NOPEC Geophysical Company ASA (TGS). In addition, there was lack of infrastructure and trained manpower. All these things were taking time.

Feasibility study

"We have paid TGS-NOPEC $10.5 million and taken all the 2-D seismic data and appointed Spectrum of Australia as consultants. We have already sold two datas to ONGC and BG (British Gas)," he said. Talking about new refineries, the Minister said, "We are now going to do the feasibility study for doubling the capacity of the refinery at Sapugaskanda.

"The Egyptian Government had offered to do it for us. But we are not yet clear whether they would be charging us. In case they do, we would be calling to tenders to do feasibility study for which we have allocated $1 million."

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