Sri Lanka to call for oil exploration bids
October 6th, 2011 - 2:15 pm ICT by IANSColombo, Oct 6 (IANS) Sri Lanka is to call bids for oil and gas exploration for five blocks off the country’s northwestern coast, a minister said Thursday.
Interest in the blocks has jumped after the Indian subsidary of exploration giant Cairn found a large natural gas deposit over the weekend. However, it estimates that it will be 18-25 months before the gas deposit is commercially viable, Xinhua reported.
Cairn India has invested over $100 million in the exploration and also hopes to find oil in the same region.
Petroleum Minister Susil Premajayantha told media that they are hoping to get larger bids for the five blocks since gas deposits have been confirmed.
“We are hoping to get better tender offers for the remaining five blocks. We will be launching the process after the next two months,” the minister said.
Several companies, including Russia’s Gazprom, have shown token interest but no commitments have been made.
On Sunday, Sri Lankan President Mahinda Rajapaksa announced at an election rally that gas has been found off the northwestern shores of the island nation.
Sri Lanka does not produce oil and spends around $3 billion annually on imports.
- Sri lanka finds first gas field off Mannar - Oct 03, 2011
- Iran sanction won't create oil shortage: Sri Lanka - Jan 18, 2012
- Sri Lanka says gas field found in northwestern sea - Oct 03, 2011
- Indian company drills second oil well in Sri Lanka - Oct 22, 2011
- Cairn India starts oil exploration in Sri Lanka - Aug 06, 2011
- India holds bilateral talks with Nigeria, Sri Lanka, Canada - Nov 03, 2010
- Dhaka looks to Moscow for oil, gas exploration - Dec 28, 2010
- Russian firm to operate two oil fields in Venezuela - Apr 13, 2012
- Sri Lanka, Vietnam ink oil deal - Oct 14, 2011
- India eyeing upon Canadian sand gas, shale gas technology: Murli Deora - Nov 03, 2010
- Sri Lanka keen to implement war commission report - Apr 04, 2012
- Sri Lanka expects Cairn India to extract oil by 2010 (Lead) - Jul 07, 2008
- Sri Lanka rejects Indian offer to upgrade refinery - Apr 29, 2012
- Supreme Court to hear PIL against Cairn-Vedanta deal - Feb 27, 2012
- Sri Lanka's ruling party wins local council elections - Jul 24, 2011
Tags: 100 million, cairn india, commitments, election rally, gazprom, giant, island nation, mahinda rajapaksa, natural gas, northwestern coast, northwestern shores, oil and gas, oil and gas exploration, oil exploration, petroleum, president mahinda rajapaksa, sri lanka, sri lankan president, subsidary, xinhua