The government of Sri Lanka will call for fresh bids from international petroleum companies with expertise for oil exploration, development and production in the Cauvery and Mannar Basins in the northwestern sea.
Utilizing the oil and gas obtained from local sources as a source of energy has been identified as a significant economic benefit to the country.
Petroleum companies and geologists have shown keen interest in the oil exploration in Mannar and Cauvery basins that are believed to have oil and gas deposits.
Accordingly, the Cabinet of Ministers has approved the proposal presented by Minister of Petroleum Resources Development Arjuna Ranatunga to call for bids from international Petroleum Companies to explore, Develop and Production of Petroleum in Mannar and Cauvery areas where petroleum sources are expected.
In 2013, Cairn India, one of the leading independent exploration and production companies globally, made gas and condensate deposits in two of the four exploration wells it was awarded in Mannar Basin.
However, in 2015 Cairn, which was optimistic about its Mannar basin block and was planning to begin gas production from the block by 2017-18, decided to exit from its oil exploration operations in Sri Lanka due to slump in revenues following the drop in global oil prices.
