It is
anticipated that the Ministry of Petroleum will draft a tender to expand the
Sapugaskanda refinery and have indicated that they intend to keep ownership,
take on debt to finance the renovation and undertake a public and transparent
tendering process.
The state is
also interested in building a refinery owned by the private sector that could
serve both the national and export markets. These proposals will be considered periodically
by the Ministry of Petroleum (no tender needed) and will seek permission from
the cabinet on vetted feasible projects. To be a severe contender, companies
must secure the necessary funding.
There will be
possibilities to supply oil and gas exploration projects with the required
facilities and services. The government is providing a global licensing round
in the Mannar Basin block M2 for the assessment and growth of natural gas
findings.
According to
reports, the Sri Lankan Petroleum Development Secretariat has obtained offers
from a consortium of medium-sized oil companies in the United Kingdom, the
United Arab Emirates (UAE) and South East Asia to create an offshore block
where gas deposits have already been discovered.
Media reports
say that an India firm found gas deposits in the M2 block off Sri Lanka's
northwest coast, but the wells had not been established as gas prices had
dropped.
OSL Take:
The geographic placement of Sri Lanka in the Indian Ocean has made it a leading player on the main maritime path, creating many possibilities for business/investment. The oil and gas exploration industry in Sri Lanka is rapidly emerging as a high-standard business/investment chance. Foreign oil companies could explore possibilities for business/investment in the oil and gas exploration industry in Sri Lanka.
VBS/AT/11102019/Z_TB1
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