Oil exploration in Mannar Basin:

Government to lease more blocks

Hiran H. Senewiratne

The Government is in the process of leasing nine oil blocks in the Mannar Basin to several countries to fast track oil exploration Petroleum and Petroleum Resources Development Minister A.H.M Fowzie said.

“Therefore, a decision will be made shortly by President Mahinda Rajapaksa and the Cabinet to call for international tenders to give those blocks to highest bidders for exploration activities,”’ Minister Fowzie told the Daily News Business.

An Indian company “Cain India” is carrying out explorations in the Mannar Basin , while several other countries have asked for the remaining nine blocks for oil exploration. Seismic tests for this purpose have been completed at a cost US$ 10.5 million, he said .

Vietnam too has expressed their interest in oil exploration activities in Sri Lanka and its Deputy Foreign Affairs Minister Dao Viet Trung had conveyed it when he met Minister Fowzie at the Ministry yesterday.

The Minister said the oil exploration in the Mannar Basin for the purpose of extracting oil from deposits in the future will be possible as research has shown the possibility of having oil and petroleum in the Mannar Basin.

Minister Fowzie said they have done research in the Southern Province too, which has revealed the existence of a large quantum of hydro carbon deposits in the area.

Sri Lanka tried exploring for oil more than 20 years ago, but abandoned the operation after early results proved negative.

But India’s discovery of gas in regions close to Sri Lanka has fuelled fresh hopes.