Indian Oil to Explore Offshore Sri Lanka

The Sri Lankan Government has offered two oil and gas blocks in offshore Cauvery basin, bordering Tamil Nadu, to state-run Indian Oil Corporation for exploration and production. The exploration blocks were offered on a nomination basis and contract for the blocks should be signed by the end of this year, according to IOC chairman M S Ramachandran said here.

Coordinates and contractual terms and conditions for the two blocks are yet to be finalized, he said adding some work on the prospects of the blocks has been completed.

Indian government has already awarded exploration licenses for two blocks in Cauvery basin to consortiums of ONGC and Oil India Ltd and Reliance Industries Ltd and Hardy Oil.

Ramachandran indicated that IOC might take a partner with deepwater exploration know-how on board for the Sri Lankan blocks. IOC has taken stakes in 10 on- and offshore blocks in India, in participation with state-owned ONGC, OIL and GAIL.