New Delhi, May 28: Sri Lanka has offered two oil and gas blocks in offshore Cauvery basin, bordering Tamil Nadu, to state-run Indian Oil Corporation (IOC) for exploration and production. "They (Sri Lankan government) have offered us two oil and gas blocks on their side of Cauvery basin on nomination basis. We too are keen on taking up exploration and production and contracts for the blocks are likely to be signed by the year end," IOC chairman M S Ramachandran said here. Coordinates and contractual terms and conditions for the two blocks are yet to be finalised, he said adding some work on the prospects of the blocks has been done.
Indian government has already awarded exploration licence to two blocks in deepwaters of Cauvery basin to consortiums of Oil and Natural Gas Corporation and Oil India Ltd (ONGC-OIL) and Reliance Industries Ltd and Hardy Oil. Ramachandran indicated that IOC might take a partner with deepwater exploration knowhow on board for the Sri Lankan blocks likely to be awarded to it.
IOC has taken stake in 10 onland and offshore oil and gas blocks in India, in participation with state-owned ONGC, OIL and Gail.
The Fortune 500 company, that entered Sri Lanka last year through a one year government-to-government term contract for export of diesel and aviation turbine fuel, has acquired 100 petrol stations of Island`s national oil firm Ceylon Petroleum Corporation (CPC) and plans to add another 150 in two years.
IOC has also acquired Chinabay Trincomalee Tank Farm at Trincomalee that would be developed as strategic storage facility for both India and Sri Lanka, he said. Bureau Report