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Last Updated : 2024-05-07 20:29:00
27 April 2024 02:39 am - 19 - {{hitsCtrl.values.hits}}
Sri Lanka’s efforts to attract and leverage international investment into the exploration of oil and gas have once again been gridlocked by legal challenges in the Court of Appeal.
Plans were underway to commercialise two blocks, adding to over 5,000 square kilometres with potential oil and gas resources in the Mannar Basin.
According to the latest developments in CA (Writ) Application No: 392/2023, the court found that a prima facie case has been established by the petitioner Serendive Energy.
Accordingly, the court issued orders restraining the first to 36th respondents and/or its servants or agents from granting to any third party, other than the petitioner, the rights to offshore exploration of blocks M1 and C1, until a final determination is reached in the case, Serendive Energy said in a statement.
Serendive Energy, which has a strategic alliance partnership with a large Indian conglomerate, commenced pursuit of legal remedies following a recent effort in 2023, to reverse exploration block award that had previously been made to the company.
Serendive Energy first participated in an open international tender (SL 2019-02) in 2019 and was awarded the blocks Mannar Basin M1 and Cauvery Basin C1, in May 2021. This decision took place following evaluations conducted by the Petroleum Development Authority and headed at the time by former Chairman Saliya Wickramasurity and current Chairman Surath Ovitigama, who have long served among the nation’s leading domain experts on oil and gas.
International competitive bids were called for in the year 2019 for the exploration and production of oil and gas of Mannar Block M1 and Cauvery Block C1 and the bid evaluation process was concluded in May 2021.
Negotiations were held by the government throughout the year 2021 with Serendive Energy (Pvt.) Ltd for separate petroleum resources agreements in respect of the M1 and C1 blocks and about 90 percent of the negotiations were concluded. The final petroleum resources agreement was expected to be entered into during the first half of the year 2022.
While the awarding of blocks to Serendive Energy was hailed at the time as critical forward after many previous false starts, all activity on exploration grinded to a halt during the country’s economic crisis. Many attempts were subsequently made to reverse the award.
The petitioners submitted that such measures amount to a direct contravention of Petroleum Act 2003.
Hydrocarbon prospectivity and legislation in Sri Lanka was established in 2001, with the funding by the Asian Development Bank and technical assistance from New South Global, part of the School of Petroleum Engineering within the University of New South Wales (UNSW), based in Sydney, Australia.
The team leader of this project, Prof. Ray Shaw, concluded in the report, “The Gulf of Mannar basin represents a new deep water frontier region, which has the indicia for hosting significant hydrocarbon accumulations.”
Petroleum Act 2003 was passed by Parliament under the visionary leadership of the then Prime Minister Ranil Wickremesinghe. However, the subsequent mismanagement and bureaucratic inaction hindered any meaningful progress from being achieved.
I may not get credit but THEY should not get credit Saturday, 27 April 2024 07:34 AM
Our politics is very petty. A project started by one party will not proceed if another comes to power in the next election. UNP and SLFP were the two major parties in the past. Half built buildings, half laid roads, half dug channels were plenty. Katunayake highway was a good example. How many false starts until it was completed by the third generation? Petty politicians; petty progress.
Mahila Sunday, 28 April 2024 02:53 AM
SKULLDUGGERY, at its best Advent and without compare in any other part of the world, “ALL and ALL THE WHILE”, claiming that, Each and Every ‘ACT OF THEIRS’ - DECEPTIONISTS they are – SOLELY in PURSUIT of and as, “NATIONALIST, PATRIOTS and PROTECTORS of Sri Lankan National SOVEREIGNTY’!!!??? On the contrary, what they were doing was to the CONTRARY and providing, SUCCOUR and STRENGTH to destroy those sacred elements in this NATION STATE PTOGRESSIVELY for 75 YEARS since Independence, driving STEALTHILY towards, "STATE of BANKRUPTCY", which they achieved in 03/2022 – SATISFY their EGO and SELFISH PURSUITS or Aggrandisement!!?? Supreme Court decision, year ago, absolutely “ON THE MONEY”, WITHOUT DOUBT!!?? ENLARGED (?) it is the insidious act of “HERD” – agree terminology in ‘COMMON PARLANCE’ attributable to collection of (‘MOOT POINT’) CATTLE – UNEDUCATED Legislative Cover!!!???
Interference Saturday, 27 April 2024 08:25 AM
I doubt there is any possibility that oil could be found in commercially profitable way in this area. From past experiences I can only immagine someone is trying to make some quick buk. If fortunately oil is found, it will open a new can of worms. We all know how America and its allies are interfering in other oil producing areas.
Mismanagement and Still Seeking Reelection from Voters Saturday, 27 April 2024 08:47 AM
As usual, another failed attempt and lots of money mishandled and wasted. Any these morons want to continue all this mismanagement all over again by asking voters to reelect them. If voters can’t see these issues clearly and will be voting them in again, seek medical attention immediately for memory or other related issues.
Gabriella Saturday, 27 April 2024 10:27 AM
Why hasn’t the President intervened to rectify the “mismanagement”? This is why reputable companies avoid Sri Lanka like the plague. The Australian ambassador tried to bring this issue ( transparent tender ) into the public domain. But, in a country where nothing moves without a bribe, this was an exercise in futility.
Potential Lifeline For Economic Recovery Saturday, 27 April 2024 10:40 AM
End of the day, SL is the looser. Investors or explores will be cautious when dealing with SL. Should allow the first team to continue on this project as they are familiar with it. Unless there are other complications like price fixing, commission distribution etc, then courts will need to speed up their judgement. This is a potential source of funds for the economic recovery.
Mohamed Burhan Saturday, 27 April 2024 11:19 AM
Very sad to hear legal obstructions now!!.This is a very very very Important If some little oil is their after exploration country will atleast have oil for a day or two for an year without buying. What is all this legal disputes! Our country our Govt.should handle decimating all obstacles and start exploring immediately. Thisshould have been done 70 years back.
Oil or water. Which is lighter? Saturday, 27 April 2024 11:56 AM
No need for oil. We are now electrified!
Mohan Saturday, 27 April 2024 12:46 PM
We need to go for renewable energy, not oil.
Heather De Silva Sunday, 28 April 2024 07:40 PM
Another dumb Sri Lankan. We need the oil to export and get foreign currency. Foreign currency tgat is used to buy all the crap tge idiots like you in SL use every day, but are too lazy and stupid to make or grow for themselves. E.g eggs, milk, sugar, onions, imported goods etc. Grow a brain before being critical.
navratne willamune Saturday, 27 April 2024 03:40 PM
If oil is present in substantial quantities, multinational companies would have approached SL for drillig rights by now.usual stories before elections ,ie better times ahead, that never comes
Mohamed Burhan Saturday, 27 April 2024 04:41 PM
Navaratne Willemune.As I see what you say may be correct.But give it a try was not done at all by drilling to an optimistic level
ANNECUNT Saturday, 27 April 2024 05:15 PM
only going to make the Rajapaksa family more richer. mahinda got marriot hotel in dubai basil got 3 house in usa on wifes name gota got 3 houses in usa under wifes name gota son got 4 houses in usa ALL FROM OUR STOLEN MONEY
TIME TO WAKE UP AND SPREAD THE WORD OF " COUNTRY NEEDS A CHANGE OF GOVERNMENT". THE UNKNOWN IS DEFINITELY GOING TO BE BETTER THAN THE PRESENT KNOWN, BELIEVE ME. Saturday, 27 April 2024 07:24 PM
this government and the STOOGE PUT IN BY GOTA LEADING IS ALL HELL BENT ON MOUTHING OUT ALL THESE PROMISES WHICH HE WILL NOT BE ABLE TO FILL. HE APPEARS TO HAVE A MUTUAL PACK WITH THE SLPP AND AS USUAL WITH POLITICS MINISTRIES MAY HAVE BEEN PROMISED TO SOME AND THEY ARE PLANNING TO FEATHER THEIR NESTS FURTHER. I PREDICT IF THE FOX WINS, HE WILL BRING IN LAWS THAT WILL RESTRAIN POEPLES POWER AND US ALL AND WILL RULE LIKE A DICTATOR TOGETHER WITH HIS BUNCH OF STOOGES, SHORTLY AFTER HAND OVER BACK TO SLPP AND THE PEOPLES PARTY THAT HE INTENDS WILL BECOME A PERMANANT FIXTURE, HE WILL NOT COMPLETE HIS FULL TERM RETIRE AND CLAIM HE CREATED HISTORY. AFTER THIS THE COUNTRY WILL GO BACK TO THE RAJAPASKE YEARS RULE.
Only true idiot would pass the Petroleum Act 2003 Saturday, 27 April 2024 09:29 PM
This country is bowed down under the weight of 2500 so called culture. Ranil was truly an idiot for believing while major religion is given front place anything can succeed here. Until the 2500 culture of mindless failure is fixed through abolishing wicked cultural practices, the country is forever failed.
Mahila Sunday, 28 April 2024 03:34 AM
ONLY TRUE IDIOT WOULD PASS THE PETROLEUM ACT 2003!!”” “Petroleum Act 2003 was passed …...................visionary leadership……… Prime Minister Ranil Wickremasinghe”. (ARTICLE CONTENT) That act was passed to PAVE the WAY FORWARD for COMMERCIAL HARVESTING of HYDROCARBON resources within the Sri Lankan Territorial Limits!!?? Process to, "Harness the proceeds of wealth, of such 'Underground Hydrocarbon Resources' for Lankans to enjoy such Proceeds" be termed an act of an IDIOT!!!??? Be that as it may!!!??? If so, under same circumstances, could the 2600 years, Culture and Civilisation, and “PAROCHIAL INTELLIGENTSIA, LITERATI”, spell-out lucidly, "WHAT WOULD NOT BE TERMED AN ACT OF AN IDIOT"!!?? What are, IF ANY Possible Alternatives, than LIMITING, CONFINING to CASTING CRITICISM!!??? UNLESS so-called LITERTI, are ‘WALLOWING’, in ‘Sea of IGNORANCE’!!!??? Political STOOGES, scoring POLITICAL POINTS!!!??? DOESN’T SERVE ANY CONSTRUCTIVE PURPOSE!?
Rattpakse Sunday, 28 April 2024 02:56 AM
In 2007 November, I commented on this topic and won many likes, I said this: If there is oil in the area, only evidence is that Indians would be very active from their side and if that is not happening then there is no oil from our side. So don’t fool the people. My comment still stands!!
Jayantha Sunday, 28 April 2024 07:16 PM
Parliament should pass laws to make sure that these issues do not arise. Actually this is why president JR mainly created the executive presidency so that with presidential powers anything can be done.
George Monday, 29 April 2024 01:22 AM
From the 1970s oil exploration is going on in the Mannar basin and still oil is not found. Stop wasting the funds exploring for oil and develop the agricultural sector, tea industry, and promote soft industries supporting young entrepreneurs
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