Lanka to offer oil blocks to India, China without bidding
23 Feb 2007
Beijing: Sri Lanka says it plans to allocate an oil block each to India and China without the customary bidding process in view of the country's close relations with the two countries and will invite international bids for the remaining eight identified oil blocks.
Palitha Kohona, Sri Lankan Foreign Secretary, said, who is currently in Beijing, said, "Our plan is to allocate two blocs, one bloc to India and one to China, without going through the bidding process."
Kohona said that a bidding process would be launched soon for the other areas. "Whoever bids the highest will get them," he said in response o a query on the prospects of Chinese oil companies prospecting for oil in Sri Lankan waters.
Sri Lankan president Mahindra Rajapakse is due to pay a state visit to China from 26 February to 4 March to commemorate the golden jubilee of the establishment of diplomatic relations between them, during which the two countries are expected to sign a series of agreements, which may include energy cooperation deal.
Sri Lanka has identified the Gulf of Mannar for the first phase of oil exploration, which is likely to begin in August 2007.
Rajapaksa
will visit China to participate in a series of events
to celebrate the 50th anniversary of diplomatic relations
between Sri Lanka and China.
