|Sri Lankan signs oil exploration agreement with India|
|Monday, 07 July 2008|
The government today signed the agreement with Cairn India Ltd to explore and produce hydro - carbon and natural gas in the Mannar Basin in Northern Sri Lanka.
Minister of Petroleum and Petroleum Resources A. H. M. Fowzie and Chief Financial Officer Indrajith Benerijee signed the agreement on behalf of Sri Lanka and Cairn India (Pvt) Ltd, respectively, in the presence of President Rajapaksa.
Minister of Petroleum and Petroleum Resources A. H. M. Fowzie and Chief Financial Officer Indrajith Benerijee of Cairn India (Pvt) Ltd, signed an agreement to explore and produce hydro -carbon and natural gas in the Mannar Basin on , in the presence of President Rajapaksa on July 7.
The exploration spending schedule of the company in the next three years is expected to be USD 112 million.
Once commercial extraction commences, the oil company is allowed up to 65 percent of the revenue to cover its investment. The government will receive a 10 percent royalty, USD 50 million Production Bonus, the profit share based on the investment multiple, and 15 % tax on Contractor Profit and other necessary taxes.
The Exploration licence is valid for eight years and divided into three stages of three, two, and three years. The Government of Sri Lanka will receive all exploration data, and the Contractor will be required to support education and training of staff, support environmental studies and transfer related technology to Sri Lanka.
(Courtesy : Government of Sri Lanka )
|Last Updated ( Monday, 09 March 2009 )|
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