The bidding has been scheduled for the first or second quarter next year but has run into opposition from Ceypetco, which says the new study is a duplication of earlier work.
An earlier technical assistance project carried out in 2001, reviewed existing geological data, drew up draft petroleum legislation and included aid for an international road show.
“The main component of this new technical assistance is to conduct the bidding round, to prepare bid documents and evaluate interested offers. We don’t have that kind of expertise here,” Director General of the Petroleum Resources Development Secretariat, Titus Jayawardene said.
“There is no duplication. The final draft of the agreement with the ADB is with us for our comments before it can be approved.”
Officials from the Ceylon Petroleum Corporation could not be reached for comment.
Jayawardena says the dispute will not delay the bidding round and is likely to be resolved quickly, being taken up at a Secretariat meeting in December.
A second round of 2D seismic surveys on a 4000 km stretch of seabed off the Western coast, is due to begin this December with Norwegian based TGS Nopec.
Generally, 2D seismic surveys are the first phase of surveying an area to get a feel for the sub surface geology, before offering the data for potential development
Early studies show that Sri Lanka could strike oil off Mannar in the Cauvery Basin, with potential reserves of 10-50 mn barrels.
Initial seismic studies carried out by TGS Nopec, shows evidence of hydrocarbon accumulations in the Cauvery Basin off the Western coastal Belt.
If potential blocks can be sold off next year, drilling should begin by 2006, based on tentative timetables.
Sri Lanka held a road show in April this year, on the sidelines of Annual Convention of the Association of American Petroleum Geologists in Dallas and in London.
Geological prospects for about five potential blocks as well as fiscal terms and conditions for potential investors were announced at the workshop.
All necessary paperwork such as model petroleum resource agreements, and development licences has already been drawn up, with legislation also in place.
The response was ‘encouraging’, Jayawardene said, with interest from independent oil companies and medium to small scale firms.
All Rights Reserved.