Floundering with a severe profitable extremity, Sri Lanka reportedly estimates that a 30,000 sq km area off the islet’s north seacoast holds oil painting coffers of over a million barrels. ONGC Videsh Limited( OVL) is keen to share in oil painting and gas disquisition openings in Sri Lanka and is staying for the islet nation to unveil its roadmap and policy on developing the upstream petroleum assiduity, the company’s managing director Rajarshi Gupta told journalists on Wednesday.
ONGC Videsh Limited is the overseas investment arm of India’s state- possessed oil painting and Natural Gas Corporation. According to Gupta, a presence in oil painting and gas means in Sri Lanka would gain from the solidarity of the larger ONGC group, as the parent company has significant upstream means and structure in southern India.
Geologically, the islet nation and its coastal areas are relatively analogous to corridor of southern India, and the ONGC is endured in operating in similar zones. Sri Lanka’s geographical propinquity to India is also seen as a major magnet for ONGC Videsh Limited.
Gupta added that ONGC Videsh Limited would be open to government- government accommodations, competitive bidding or any other route that the Sri Lankan government decides on to enable participation in the islet country’s upstream petroleum sector.
Asked by when he expects Sri Lanka to open up oil painting and gas disquisition to foreign participation, Gupta said that it would be contingent on the Sri Lankan government finalising its policy for the sector.
In January, Reuters reported that Sri Lanka was in the process of preparing a policy to issue disquisition licences for over to 900 coastal blocks in a shot to attract foreign investment. The islet nation had been floundering with a severe profitable extremity, which led to an associated energy extremity as well. Sri Lanka is largely dependent on significances to meet its domestic energy demand. India formerly has close energy ties with its southern neighbour and the Indian Oil Corporation is among the major energy retailers in Sri Lanka.
So far, Sri Lanka has not gone ahead with a major petroleum disquisition programme. It held a veritably small licensing round for oil painting and gas disquisition back in 2007, which redounded in just one block being awarded. Grounded on seismic data, the Sri Lankan government reportedly estimates that a 30,000 sq km area off the islet’s north seacoast holds oil painting coffers of over a million barrels.
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