Video: Govt. has to collect US$7 Bn from Cairn Energy: Champika

2 January 2015 02:03 pm - 16     - {{hitsCtrl.values.hits}}


The Maithripala Administration will carry out an investigation into the failure by the present regime to collect a sum of US$7 billion which was owed to Sri Lanka by Cairn Energy which breached the contract to extract oil from the Mannar Basin, JHU General Secretary Patali Champika Ranawaka said today.

He said the US$7 billion which was earned by Cairn Energy as a result of its share price hike after the announcement it made saying it had found Gas in Mananr Basin.

Mr. Ranawaka, a former Minister of Power and Energy, said the price of shares belonging to Cairn Energy would have benefited Sri Lanka but unfortunately oil prices had declined.

He said the company had paid more than US$1 billion to the Indian government in a similar situation that had occurred a business deal with India.
“This is a mega deal and we will bring those responsible for this massive loss when we come to power,” Mr. Ranawaka said.

Relating the story behind the oil and gas exploration, he said the international funding agencies paid attention to oil and gas exploration in 1990 and the project was initiated in 2000. He said Norwegian TGS OPEC was allowed to explore for oil in 2002 while in 2007 the Mannar Basin was divided into eight sections or fields based on seismic data.

He said the third field was given to Cairn Energy, which is a British company owned by a close associate of former British PM Tony Blair. In 2011, Cairn had announced that Gas was found there but Cairn closed a deal with Vedanta where 40 percent of the stake was closed and the promise to extract oil within two years he said was not honored.

Mr. Ranawaka said a litre of petrol Octane-92 could be sold at Rs.58.11 per litre, Petrol high Octane at Rs.73, diesel at Rs.69, Kerosene at Rs.69 and furnace oil at Rs.49 with the reduction of premium that can also be reduced with decrease in global oil prices. (Yohan Perera and Ajith Siriwardane)


  Comments - 16

  • KP Friday, 02 January 2015 09:07 PM

    I thought you were one time Minister of the said government. via DM Android App

    Nalini Saturday, 03 January 2015 05:42 AM

    Was our contract with Cairns India?

    Sri Wickrema Friday, 02 January 2015 09:56 PM

    All the Ministers

    segu Friday, 02 January 2015 10:23 PM

    were you not responsible for all these while you were a minister under MR? out crying now is useless if you are reasonable guy you should have out cried then.

    ukusu asa Saturday, 03 January 2015 01:30 PM

    Gentleman if you said that before this canvassing session and out from MR government as member of your own party we can get your ideas without any dubious via DM Android App

    hiran Gunawardena Saturday, 03 January 2015 01:41 PM

    yes he was. well this is srilanka. People are easily forgotten who is what from day before via DM Android App

    Lalith Wijeweera Saturday, 03 January 2015 01:50 PM


    lakshmanu Saturday, 03 January 2015 09:08 AM

    Wake up all whistle blowers! Where were you when these happened?

    PS Saturday, 03 January 2015 01:52 PM

    We respect Champika

    Vijith Pieterz Saturday, 03 January 2015 09:18 AM

    Yes Sir, we know that you are a honest person keeps up promises and act according to the righteous path. Go ahead Master.

    dcn Friday, 02 January 2015 11:22 PM

    This is a big sum of money and surprising as to why this was not claimed earlier.

    madhawa Saturday, 03 January 2015 09:35 AM

    The announcement is made on 2011 and the said agreement should be made when you were in power and when you were acting as the minister of power and energy. so you were there for some more years. so you should have done something at that time... not now

    jayasingha Saturday, 03 January 2015 12:40 AM

    What price do you propose to sell petrol etc: if you happen to be in a new government under Sirisena / Ranil / Chandrika?

    anonymous Saturday, 03 January 2015 01:54 AM

    Since MR style is exposed, to make his ministers to be puppets, It clear that the they did not have power to raise these questions. In times one will have to choose the better evil out of the two and this what Ranawaka has done. Even the better ministers like him had no choice. You have to understand that MR President was the better choice at time. Ranawaka tried his best to get the things done being with M.R. but it is clear that M. R. did not listen. The situation applies to Maithree as well. We all should understand this .

    D.Jayawardena Saturday, 03 January 2015 10:09 AM

    The information given to the former Minister is entirely erroneous.In the firat place The President Mahinda Rajapakse was not the minister in charge of oil exploration as it was under the Ministry of Petroleum Resources.The Petroleum Resources Agreement PRA) was signed by the Minister of Petroleum Resources Development and Cairn Sri Lanka a wholly owned subsidiary of Cairn india in July 2008.TRA clearly spells out the exploration and development as well as extraction of oil or gas.Ther block awarded to Cairn Sri l Lanka was Block 3 SL/2007 -01 -001 where there were three bidders namely Caitn SL , ONGC Videsh and Nicko Cyprus.The discovery of gas in two areas of this Block was after Cairn of the United Kingdom sold their stake in Cairn India to Vedantha and there was no question of increase in share prices due to the discovery in Mannar.My final comment is that the TGS NOPEC was not signed by the Prime Minister at thast time but by thye Chairman of the CPCThis is a very short comment but shoulds be given wide publicity.Retd.Economic Affiars Officer United nations ESCAP

    sathya Saturday, 03 January 2015 11:09 AM

    That is why he is a one time minister now, understand it ...!!!

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