Saudi help for oil quest

Rajmi Manatunga

COLOMBO: Saudi Arabia has pledged assistance to Sri Lanka for exploring oil resources along its sea belt.

During Petroleum Resources Development Minister A.H.M. Fowzie's recent visit, the Saudi Arabian Government has agreed to provide Sri Lanka with the technology, expertise and training required for oil exploration.

Saudi Arabia is the world's largest crude oil producer and exporter accounting for 13 per cent of the world oil output. It also owns one fourth of the world's oil reserves.

"Following discussions, the Saudi Government agreed to advise its business community to invest in Sri Lanka's oil exploration by taking part in the bidding scheduled for June. They also expressed willingness to grant us technological know-how regarding the oil industry like tax systems and contract procedures," Minister Fowzie told the Daily News.

The Minister pointed out that the knowledge and experience of petroleum giants like Saudi Arabia was vital for Sri Lanka which is still at an infant stage in the oil industry.

Accordingly, it has been decided to send Sri Lankans to Saudi Arabia for a five year programme where they will be trained as geologists, technical officers and other professionals.

Iran and the United Arab Emirates have already promised help for Sri Lanka's oil exploration scheduled to commence in August 2007. The Government is planning to commence the bidding for oil exploration along the North Western seal belt in June-July this year.

The Minister said that the Bay of Mannar has been identified for carrying out the first phase of oil exploration. "We have also decided to conduct seismic surveys in the coastal belt along the Kaveri and Hambantota areas," he said.