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| Friday, 23 January 2004 |
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by Rashomi Silva The Republic of Iran on Wednesday agreed to sign a Memorandum of Understanding with the government to provide technical and financial assistance for oil exploration in Sri Lanka, the Power and Energy Ministry announced yesterday. The agreement was reached on a request made by Power and Energy Minister Karu Jayasuriya when he met an Iranian delegation led by Deputy Finance Minister Mohammed Kashi at the Power and Energy ministry. According to studies conducted by international oil exploration companies and satellite surveillance, signs are favourable for finding hydrocarbons in the offshore Western coastal belt. The geophysical structure of the Gulf of Mannar is said to be very encouraging. The delegation had also agreed to get Iranian companies involved in the bidding process when tenders are called from prospective bidders for oil and gas exploration. The delegation had agreed to waive the requirement of a bank guarantee and to extend the credit facility for six months to purchasing crude oil. "This was done with the aim of assisting the Ceylon Petroleum Corporation to overcome its immediate liquidity problems which resulted from high oil prices," the spokesperson said. A credit line of US$ 20 million was also offered through the EXIM Bank in Iran on concessionary terms for the development of the power sector, the spokesperson said. |
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