Historic oil exploration deal signed with India

The epoch-making Petroleum Resources Agreement was inked between Sri Lanka and India for the exploration and production of oil in Northern Sri Lankan waters in the Mannar basin, at Temple Trees yesterday with President Mahinda Rajapaksa presiding.

This historic agreement signed between Sri Lanka and India will now pave the way for the exploration and production of natural gas and hydrocarbon resources yet untapped by the nation.

The agreement was signed by Petroleum and Petroleum Resources Minister A..H.M. Fowzie for Sri Lanka and Indrajit Benerijee, the Chief Financial Officer of Cairn (Pvt) Limited of India.

A ‘Bonus Cheque’ of US $ one million was also handed over to President Rajapaksa, following the inking of the agreement.

Minister Fowzie addressing the participants at the signing ceremony, asserted that it was a ‘ray of hope’ in relieving all Sri Lankans from the ongoing global fuel crisis which has also plunged the whole world into a ‘coma’.

He thanked President Rajapaksa for his unstinted and concerted effort and his foresight in making this milestone venture a successful reality.

The Chief Financial Officer Cairn (Pvt) Limited Indrajit Benerijee noted that they were delighted to participate in this great venture as the first ‘Licencee’, to make Sri Lanka less dependant on oil imports.

Benerijee said the best practices and technology available in the sphere would be deployed in the process.

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http://www.dailynews.lk/2008/07/08/news01.asp
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Lanka IOC further reduces diesel price by Rs.10

The Lanka Indian Oil Corporation (LIOC) Thursday heeded the government's request and further reduced the price of diesel by 10 Sri Lankan rupees to bring it on par with that of state-owned Ceylon Petroleum Corporation (CPC).

"The Lanka IOC reduced diesel price by 10 rupees per litre and matches CPC price of 110 rupees per litre with effect from 00:00 hours of Friday," Lanka IOC managing director K. Ramakrishnan said Thursday, adding that the price of LIOC petrol would continue to match that of CPC at Rs.157 per litre.

This is the second price reduction by the LIOC within 48 hours, a week after Petroleum Minister A.H.M. Fowzie warned of takeover of all 153 LIOC outlets if the company did not bring its diesel price on par with CPC.

On Tuesday, LIOC reduced the diesel price by Rs.10 per litre.

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http://news.webindia123.com/news/articles/Business/20080626/985083.html

Cairn India gets Sri Lanka exploration licence

Cairn India, a unit of Britain's Cairn Energy Plc, said on Thursday it had been awarded a licence by the government of Sri Lanka to explore for oil and gas in the Mannar Basin.

The offshore block SL 2007-01-001 covers about 3,400 sq km (1,300 sq mile) in water depths of 200-1,800 metres, it said in a statement. The petroleum resources agreement for the block will be signed in due course, it said.

Ahead of the news, shares in Cairn India had ended up 0.7 percent at 263.95 rupees in a Mumbai market that rose 1.6 percent.

Extracted from,
http://economictimes.indiatimes.com

Sri Lanka to hunt for oil onshore after gas find

Sri Lanka is to start searching for oil onshore after the accidental discovery of gas seeping from the ground, government officials said.
Petroleum minister A H M Fowzie said Friday the government has received technical support from Egypt to start the initial exploration work.

The accidental discovery of signs of gas were near the Munneswaram Kovil, a famous Hindu temple, in the northwestern Chilaw area, adjacent to the waters of the Mannar Basin, where offshore exploration blocks have been offered.

"We have learned that there are signs of petroleum reserves in the onshore areas in Chilaw," Fowzie told a news conference.

"We have asked for and received assistance from Egypt after my talks there in April to do the initial surveys."

Egypt has sent three technical experts from the Egyptian oil ministry who visited the Chilaw area and studied data on previous oil exploration work.

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http://www.lankabusinessonline.com/fullstory.php?nid=1089866813

Iran to invest in expansion project of Sri Lankan oil refinery

Sri Lankan Oil Minister said Wednesday in an interview with Japan's Kyodo news agency Iran has decided to increase its investment in expansion project of an oil refinery there up to one billion US dollars.

According to IRNA office in Tokyo, A. H. M. Fowzi added in his interview with Kyodo, "Iran's President Mahmoud Ahmadinejad has allocated this amount to the purpose, which would cover 70% of the require investment for the refinery's expansion, in form of a ten year loan, with a five year exemption period from payment of the loan's installments."
Fowzi added, "Iran had earlier, too, provided the oil we need in Sri Lanka free from interest for four months."

According to this report, Iran is the largest provider of crude oil for Sri Lanka

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http://www2.irna.com/en/news/view/line-22/0804179422010501.htm

Saudi Arabia to help Lanka in oil exploration, refining

The Kingdom has agreed to train Sri Lankans in the field of exploration and refining oil in the island. This was the outcome of yesterday's talks between Ali Al-Naimi, minister of petroleum and mineral resources and Abdul Hameed Mohamed Fowzie, minister of petroleum and petroleum resources development at a meeting held at the ministry headquarters yesterday.

"We had fruitful discussions with my counterpart here and we are happy that the Kingdom has agreed to cooperate with Sri Lanka in areas of mutual interests in the field of oil supply, exploration and investments," Fowzie said. The charge d' affairs of the Sri Lankan Embassy, W.S.M.S.Wijesundera, consul general in Jeddah, Abdul Latiff Mohammed Lafeer, commercial counselor, Yasantha De Silva, and Mohammed Jabir represented the ministerial team during the discussions.

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Iranian President here in April

Iranian President Mahmoud Ahmadinejad is expected in Sri Lanka next month.
It is, however, likely to be marred by controversy with senior Foreign Ministry officials anxious over Ahmadinejad’s proposed visit to Sri Lanka.

The Iranian President is expected in the country between April 15 to 22.
In the event he arrives as scheduled, Ahmadinejad is also likely to lay the foundation stone for the Uma Oya hydro power project, which is being funded by Iran.
Iran is also assisting Sri Lanka to develop the Sapugaskanda oil refinery.

“Foreign Ministry officials are apprehensive over the impending visit, as the United Nations has imposed sanctions against Iran and Sri Lanka may likely irk the UN and other Western countries in the event Ahmadinejad visits the island,” sources said.
However, the Iranian President’s visit to the country is yet to be finalised.
President Mahinda Rajapaksa undertook a controversial visit to Iran in November last year, which reportedly irked many Western countries, including the United States.

Extracted from,
http://www.nation.lk/2008/03/09/news12.htm

Cairn in race for two Lankan oil blocks

Cairn India has entered the race for acquiring two oil exploration blocks in Sri Lanka, by bidding for blocks 001 and 002 under the ongoing Sri Lankan licensing round. Back home, it has decided to undertake exploratory drilling in new areas in Rajasthan.

According to sources, Sri Lanka's block 001 is spread over 3,338 sq km, and block 002, 3,572 sq km. Block 001 is, in fact, closer to the Cauvery basin, where oil and gas has already been discovered, hence it is attracting bids from other international oil exploration companies as well.

The chances of striking oil here are higher as geological features of the blocks are similar. In India, Cairn Energy India (CEIL) -- the operator, on behalf of joint venture partners Cairn India and ONGC in contract area RJ-ON-90/1 in Rajasthan -- has decided to commence production activities and development drilling at the Mangala Field.

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Cairn in race for two Lankan oil blocks

Cairn India has entered the race for acquiring two oil exploration blocks in Sri Lanka, by bidding for blocks 001 and 002 under the ongoing Sri Lankan licensing round. Back home, it has decided to undertake exploratory drilling in new areas in Rajasthan.

According to sources, Sri Lanka’s block 001 is spread over 3,338 sq km, and block 002, 3,572 sq km. Block 001 is, in fact, closer to the Cauvery basin, where oil and gas has already been discovered, hence it is attracting bids from other international oil exploration companies as well. The chances of striking oil here are higher as geological features of the blocks are similar.

In India, Cairn Energy India (CEIL) — the operator, on behalf of joint venture partners Cairn India and ONGC in contract area RJ-ON-90/1 in Rajasthan — has decided to commence production activities and development drilling at the Mangala Field.

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http://economictimes.indiatimes.com/

Special committee for oil exploration

The Petroleum Resources Development Ministry has decided to appoint a Special Committee represented by all political parties in Parliament to supervise oil exploration activities in Sri Lanka.

Leader of the House Minister Nimal Siripala de Silva yesterday told Parliament a decision was taken at the Party Leader’s meeting held on February 6 to inform all political parties to nominate their representatives to this committee.

The Minister was responding to a question raised by JVP Parliamentarian Wimal Weerawansa regarding an assurance given by Petroleum Resources Development Minister A.H.M. Fowzie at the Budget debate to appoint a committee to supervise oil exploration.

Weerawansa said, however, the Minister has not yet taken steps to appoint this Committee.

Minister Fowzie agreed in this House to suspend the calling for tenders and appoint a Committee represented by all political parties to supervise oil exploration before these tenders are called.

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http://www.dailynews.lk/2008/02/08/news01.asp

Sri Lanka desires enhanced trade with Pakistan: Rohitha Bogollagama

Sri Lankan Foreign Minister Rohitha Bogollagama on Thursday said his country wants to expand bilateral trade with Pakistan from the existing $ 385 million to $ one billion.

Addressing a press conference here this evening, the Sri Lankan Foreign Minister said during his talks with the President, the Prime Minister and the Foreign Minister of Pakistan the two sides expressed the desire to forge a comprehensive economic partnership for mutual benefit.

He said in this backdrop, the two countries discussed how to make the Joint Economic Commission and the Joint Council more effective to give boost to trade and economic cooperation.

He said the two countries are discussing issuance of multiple visa for business travels to facilitate businessmen of the two countries to have more interaction.

Rohitha Bogollagama said there is great potential for cooperation in shipping and Sri Lanka was interested in utilization of Pakistani tankers for transportation of crude oil from the Middle East.

He said Sri Lanka was shortly announcing blocks for oil exploration and wants to utilize the Pakistani expertise for this purpose.

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http://www.app.com.pk/en/index.php?option=com_conten

India to be major player in Sri Lankan oil exploration

India will be a key player in the Sri Lankan oil and gas exploration in the Cauvery Bay of the Gulf of Mannar which is set to begin in March next year.

As many as 18 oil and 11 gas reserves have been identified on the Indian side of Cauvery Bay and exploration will begin in March next year, Media Minister Anura Priyadharshana Yapa told reporters yesterday.

Experts estimate the sites may contain millions of barrels of crude oil for which both India and China are competing for overseas oil and gas reserves to meet soaring energy demand.

The international arm of the Oil and Natural Gas Corporation, OVL Ltd, paid one million dollars to Norwegian seismic survey group - TGS NOPE - a few weeks ago for acquiring data in the Mannar Offshore Basin in Sri Lanka, according to Sri Lankan petroleum ministry officials.

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http://economictimes.indiatimes.com/Oil__Gas/India_to_be_major_player_in_S

Lanka inviting Qatari, global energy firms to bid for 3 blocks

Sri Lanka has invited Qatari as well as international energy companies to participate in the bid for oil exploration in three offshore blocks in the country’s northwest.

Sri Lanka’s Minister of Petroleum, A H M Fowzie said the tender would be closed in January and the bid would be awarded sometime in 2008.

A recent study commissioned by Sri Lanka and initiated by an Australian firm revealed the country had oil reserves in excess of 1bn barrels.

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http://www.gulf-times.com/site/topics/article.asp?cu_no

Oil exploration: Lanka eyes experienced companies

Sri Lanka has called for bids for oil exploration from oil companies that have experience in the field, Petroleum and Petroleum Resources Minister A.H.M. Fowzie on transit at the King Khalid International Airport told Daily News.

Fowzie who was enroute to the Sixth Doha Conference on Natural Gas, came to the Kingdom to perform Umrah and visit the Prophet’s Mosque in Madinah. The Minister said the bids for this tender will close in January 2008.

“We want to get the right party to carry out the exploration since the seismic survey carried out in 2002 had indicated that the Mannar Basin could produce 1 billion barrels,” Fowzie said. Mannar Basin covers an area of 35,000 km, stretching from Mannar to Kalutara.

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http://www.dailynews.lk/2007/10/29/news03.asp