No reliable investor for Mannar Basin exploration project

• Energy Ministry officials appear before COPA
• Committee says the area which has huge potential must be given more attention
• Development of Sapugaskanda Oil Refinery discussed

 

Energy Ministry officials told the Committee on Public Accounts (COPA) that the Mannar Basin exploration project is on hold as they have found it difficult to find a reliable investor for the project and the number of employees of the Sri Lanka Petroleum Development Authority was not sufficient to deal with a project of this scale.

The officials said this when questioned by the Committee their failure to explore this area and plan out a proper procedure to obtain the revenue that could have been brought to the country from various sectors by commercially producing gas from the two identified deposits.

According to the findings of the Committee on Public Accounts dating back to 2016, energy sector officials had informed there were about five billion barrels of fuel and about five trillion cubic feet of natural gas in the Mannar Basin, which is enough to meet the needs for about 60 years. Such deposits could be used to increase the country’s power supply to 1,130 kilowatts and the natural gas production would bring approximately $ 200 billion to the country in various sectors within a span of 25 years, the Committee had been informed.

However there has been no progress to tap the potential of this era for the benefit of the country, Committee members noted.

Meanwhile the modernisation and expansion of the Sapugaskanda Oil Refinery and the construction of a new refinery were also discussed at the meeting.

The officials said a feasibility study has been carried out to set up a new oil refinery at the Sapugaskanda site. COPA recommended that a report be submitted in this regard. Furthermore, vacancies in the staff and the daily oil requirement of the country were also discussed.

Committee members MP Lasantha Alagiyawanna, B.Y.G. Rathnasekara, Duminda Dissanayake, Tissa Attanayake, Ashok Abeysinghe, Sudarshini Fernandopulle and Cader Mastan were present at the meeting.