Sri Lanka will sign agreements with French oil and gas major Total and a subsidiary of US firm Schlumberger for a seismic study off its east coast to evaluate any prospective oil resources, a top official has told Reuters on Friday.
Vajira Dassanayake, the director general at Petroleum Resources Development Secretariat (PRDS), has said a first deal signed with Total in 2016 to conduct a study off the eastern coast did not take place due to “some issues”.
“We are hoping to sign a new agreement with Total later this month,” Dassanayake told Reuters.
Total had earlier signed a two-year agreement with PRDS to survey around 50,000 sq km off the east coast from the air, at a cost of $25 million to acquire data on unexplored areas.
Dassanayake said Total will invest $3 million to $10 million for the seismic study, while Eastern Echo Holding Ltd, a subsidiary of Schlumberger, will carry it out.
“It’s a marine survey. There will be more resources allocated this time compared to the previous agreement. They will have the marketing exclusivity for a certain period until they recover their cost,” Dassanayake said.
“Actual ownership of the data will be with the government of Sri Lanka. They (Total) have one year to negotiate with us and to give us a favorable contract for production and sharing.”
Officials from Total and Schlumberger had not immediately responded to requests for comment.
Sri Lanka produces no oil and is dependent on imports for all of its fuel requirements despite trying to reinvigorate oil and gas exploration after the end nine years ago of its 25-year civil war with the LTTE.
Importing oil cost Sri Lanka USD 3.2 billion in 2017.
Saman Sunday, 6 May 2018 09:20
They have signed many deals before but whare are the data and benefits? Are they waiting to form fossil fuel? Lol
Reply : 2 18
Tom pachaya Sunday, 6 May 2018 09:33
Total loss! The CIA has all the information than any study could provide about our sea bed to every radio active atom in our mineral sand. Utter BS!!!!
Reply : 12 8
Chandran Sunday, 6 May 2018 10:09
Mark my word,the Indians would some how influence the French company through promises of future contracts,and thwart the French company from giving a positive report of viable.
Reply : 6 12
Mohamed Sunday, 6 May 2018 10:50
Pettah businessman can invest 3 million Dollars ( 3x150 = 450 million) -
Reply : 7 10
uselesss Sunday, 6 May 2018 11:24
THIRD WORLD WAR WILL BEGIN AND THE COUNTRY HUMAN WILL EAT THE FLESH OF A ANOTHER HUMAN AND KILL THEMSELVES DUE TO STARVATION AND DIE BY THE TIME OF OIL DRILLING ITS JUST FOR LAUGH AND JOKERS AND FOOLING THE GREAT GREAT FOOLS OF THIS COUNTRY FOREVER.
Reply : 2 6
Unchikun Sunday, 6 May 2018 12:17
I am from a difference vintage that most of the readers at DM. This has been going on from the 60s. I can even remember the SLFP May Day rally headed by Mr. Sirimavo Bandaranayake displaying a float of the oil rigs at Perala and that we will soon be having out own supply of oil. This information is purely for political milage. Just trying to keep a sinking ship afloat. We may hear more of this when the electors draw closer.
Reply : 0 5
Gamarala Sunday, 6 May 2018 13:18
It is very likely that there are oil and gas deposits in the Indian ocean. If India is successfully tapping these resources with success. Why not Sri Lanka? I hope that this study will show that there are oil
Reply : 0 7
sss Sunday, 6 May 2018 16:33
where is our 80 year old investment in higher education on matters like this? Economy still depnding on farmers, plantations, garments, housemaids etc
Reply : 0 3
Add commentComments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.