Oil surveying activities to SEMA

Rajmi MANATUNGA

COLOMBO: The Government will entrust the management of the oil surveying activities along the island's sea belt to the state-owned Strategic Enterprise Management Agency (SEMA).

"The decision was made following the directive to terminate the agreement with the Norwegian company TGS-NOPEC which carried out the seismic surveys earlier," Petroleum and Petroleum Resources Minister A.H.M. Fowzie said.

He said SEMA will be responsible for advising the Petroleum Resources Ministry and managing the seismic surveying activities along the Northern and Eastern sea area where oil deposits have been detected.

Accordingly, the Agency will advise the Government on conducting seismic studies along the Jaffna sea belt which was not covered by the Norwegian company. Seismic surveys in the gulf of Mannar were completed by TGS-NOPEC.

"There were complaints from various quarters regarding the implementation of the oil exploration seismic survey agreement between the Ceylon Petroleum Corporation (CPC) and TGS-NOPEC. Therefore, the Government decided at a meeting presided by the President that the agreement should be terminated," he said.

Fowzie said the Ministry was in the process of discussing terms of termination with the company which entered into the seismic studies agreement in 2002.

According to the Minister, the Government will be obliged to pay around US $ 10 million to the company as compensation upon termination of the agreement.