Sri Lanka to offer first ever oil contract to Indian firm

COLOMBO -Sri Lanka has offered the first ever contract to explore oil in the country's northwestern seas to an Indian company, Petroleum Minister A. H. M. Fowzie said yesterday.

By (By our correspondent)

Published: Mon 9 Jun 2008, 12:09 AM

Last updated: Sun 5 Apr 2015, 1:07 PM

He said the oil exploration in the Mannar seas would begin at the end of this year and India's Cairns Limited, would sign an agreement with the government of Sri Lanka on June 30.

"The cabinet has decided to offer Block No 1 to India's Cairns Limited to explore oil and gas deposits, the minister said.

The block being offered to the Indian company is spread over 3,000 square kilometres and Cairns is expected to invest more than $10 million, the minister said. Last year, the government floated tenders for eight blocks identified for oil exploration after a block each was offered to India and China outside tender procedures.

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