The Sri Lanka’s Petroleum Minister A. H. M. Fowzie informed on Saturday, June 7 that the country, for the very first time, has offered contract to explore oil in its northwestern seas to an Indian company. Mr Fowzie thereafter informed that the oil exploration will initiate in the Mannar Seas by India’s Cairns Limited sometime during the end of this year. For this Cairns Limited will have to first ink a deal with the Sri Lankan government on 30 June.

 

‘The cabinet has decided to offer Block No 1 to India's Cairns Limited to explore oil and gas deposits’, minister A. H. M. Fowzie stated. It was also informed that the block being given to the Indian firm is sprawled over 3,000 sq km. Cairns Limited, on the other hand, is expected to spend some $10 million on this project. The Sri Lankan government floated tenders for eight blocks identified for oil exploration the previous year. however, one block each was proffered to India and China outside the tender framework.