Approval for a national petroleum & gas company

Dilini Madushanki | Published: 12:01 PM Nov 24 2021
Local Approval for a national petroleum & gas company

The Cabinet has approved the establishment of a “National Petroleum and Gas Company.”

The Cabinet Paper with this proposal was tabled by the Minister of Power under the Companies Act (No.7 of 2007).

It has been proven that fossil fuel/petroleum and natural gas fields are available within the Sri Lankan territory according to the research performed in the land area of M2 of the Mannar basin within the period 2001 to 2013.

The ‘National Policy on Sri Lankan Natural Gas’ declares that the government will take action to establish a national natural gas company under a public-private partnership applicable to storing, construction of pipelines, transportation and distribution infrastructure facilities development, ownership, and monitoring including local natural gas exploration and production to engage in local exploration and production with commercial capability.

The company will be established as a subsidiary company of the Ceylon Petroleum Corporation and will be entrusted with the responsibility of performing the activities and functions entrusted to it in terms of section V of the Petroleum Resources Act No. 21 of 2021. 

Dilini Madushanki | Published: 12:01 PM Nov 24 2021

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