April 17, 2008	Thursday	Rabi-us-Sani 10, 1429

COLOMBO: Sri Lanka has delayed evaluating bids for two oil exploration blocks in its north-western offshore Mannar basin and is to evaluate one with the most competition first, the island’s petroleum resource minister said on Wednesday.

“We decide only to evaluate where there is a competition ofthree ... once that is over we will consider the other two,” Minister A.H.M. Fowzie said.

In January, Sri Lanka received six tenders from Cairn India, ONGC Videsh from India and Nico Resources from Cyprus for the offered three blocks.

All three companies bid for the first block, while Cairn India and Nico Resources bid for the second block. The third block has only received a bid from Nico Resources.

The first block is the smallest out of the three with 3,338.1 square kilometres, while the third block is the largest with an area of 4,126.5 square kilometres.

Sri Lanka has eight exploration blocks in the Mannar basin, three of which are to be given for exploration once the government decides on a successful bidder.

Two have been assigned to China and India on a nomination basis. The government earlier said it plans to delay bidding on the last three blocks to get higher revenue.

Oil and Natural Gas Corp (ONGC), which was offered the block nominated to India, said in September it was not interested in the assigned block, citing low prospectivity and the fact that Sri Lanka was asking for a big signature bonus.

The Sri Lankan government later said it would negotiate with ONGC for a new oil block. The outcome of the negotiation has not yet been revealed.

The bidding process was closed in January and the government expects to select the best bidder soon.—Reuters