The Government is planning to go for an international auction of an oil block in the Mannar basin next month, Energy Minister Udaya Gammanpila told the Sunday Observer yesterday.
The Minister said they were accelerating the process in view of the crude oil crisis the country is facing and mining is expected to begin one year after awarding the tender. This is the first time a timeframe has been announced for the next auction. “ Earlier, there was mere talk without action, but we have appointed a regulator - Petroleum Development Authority and operator - Lanka National Petroleum Company and also a Petroleum Advisory Council,” the Minister said, adding that unlike in the past, he plans to walk the talk.
He said after the auction is complete, it will take 3-5 years to actually start producing oil or natural gas.
“We have already prepared an exploration map and recruited industry experts to the Government organisation. Thus, the infrastructure is in place,” he said.
Several international companies, the would-be bidders, have purchased data packs from the Petroleum Development Authority spending around one million dollars per pack.
“That is a good sign of the confidence they have,” the Minister said.
Based on data from seismic surveys, the Government estimates that there are over one million barrels of oil resources in a 30,000 square kilometre area in the Northern waters.