PPP for oil expoloration

By Thameenah Razeek | Published: 2:00 AM Nov 25 2021
News PPP for oil  expoloration

By Thameenah Razeek

The Cabinet authorised the formation of the ‘National Petroleum and Gas Company’ under the Companies Act No. 7 of 2007.

Speaking at the weekly Cabinet media briefing yesterday (24) at the Government Information Department, Cabinet Spokesman Dullas Alahapperuma said that it has been proven that fossil fuel/petroleum/natural gas fields are available within Sri Lanka’s territory based on research conducted in the Mannar basin area of M2 between 2001 and 2013.

He noted that manufacturing fossil fuel/petroleum/natural gas reduces reliance on imports of fossil fuel/petroleum for local use, as well as the possibility of becoming a natural gas exporter in the future and earning foreign exchange. “The ‘National Policy on Sri Lankan Natural Gas’ declares that the Government will take action to establish a national natural gas company under public-private partnership (PPP) applicable to storing, pipeline construction, transportation and distribution infrastructure facility development, ownership and monitoring including local natural gas exploration and production and engaging in local exploration and production which are commercially viable,” he said.

The aforementioned company is intended to be founded as a subsidiary company of Ceylon Petroleum Corporation (CPC) and the company will be tasked with carrying out the activities and tasks delegated to it under Section V of the Petroleum Resources Act No. 21 of 2021.

By Thameenah Razeek | Published: 2:00 AM Nov 25 2021

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