BP may bid for Sri Lanka oil block - FM

LONDON: BP Plc is interested in bidding for oil exploration rights off the northwest coast of Sri Lanka, its foreign minister said on Tuesday.

Minister of Foreign Affairs, Rohitha Bogollagama told a debt conference in London that the Government had already assigned two of eight exploration areas, or blocks, identified in the Mannar Basin.

“Of the eight blocks identified, the Government has already allocated two blocks for India and China,” the minister said. “I understand that British Petroleum is also interested in making a bid.”

Seismic data shows more than a billion barrels of oil may lie under the sea off Sri Lanka’s northwest coast, Petroleum Minister, A.H.M. Fowzie, told Reuters last month.

If proven, the reserves would be a boost for a country without oil that imports between $1.0 billion to $2.0 billion worth a year for its needs, hammering its budget deficit.

A BP spokesman in London had no immediate comment on whether the company was planning to bid.

Foreign investment in Sri Lanka, which is in a two-decade civil war, is on the increase, the foreign minister said.

“The year 2006 witnessed positive FDI growth trends despite the situation in the north and east of the country,” the minister said.

“Total foreign investment during the year reached a record figure of $600 million.”

(Reuters)