Oil licence for Cairn soon

Rajmi MANATUNGA

COLOMBO: The Government is to provide Cairn India Ltd the license to explore oil deposits in the Mannar basin in the northwestern sea belt of the island shortly.

The exploration license for the company has now been drafted and sent to the Attorney General's Department for review, Petroleum Resources Development Secretariat Director General Neil de Silva told the Daily News.

The Indian company which took part in the bidding process for Block 1 of the Mannar basin was awarded the tender in June, following which an exploration agreement was signed between the Government and the company.

"Once the draft receives the green light of the Attorney General, Cairns India will be granted the license to commence exploration work on the block assigned to them," he said.

Block No 1 in the Mannar basin earmarked for oil exploration spreads over 3,000 square kilometres.

Cairns India is expected to invest over US$ 10 million on exploring oil resources in the block.