Russia interested in `Sri Lanka oil`October 27, 2009 09:16 pm
The Russian federationhas expressed interest in oil exploration in Sri Lanka. Visiting Russian Foreign Minister Servey V. Lavrov expressed interest in oil exploration in the Mannar bay and the rehabilitation of the Sapugaskanda oil refinery, Sri Lanka Foreign Ministry said in a statement.

Mr. Lavrov, a former diplomat who has worked in Colombo and a Sinhala speaker, is the first Russian Foreign Minister to visit Sri Lanka since diplomatic relations were established in 1957.

He held discussions with the President Rajapaksa and his counterpart, Rohitha Bogollagama in Colomboduring his one-day visit.

Sri Lankahas already offered oil exploration opportunities to Indiaand China, countries that supported Sri Lanka`s military offensive to defeat Tamil Tigers.

Foreign Minister Rohitha Bogollagama said Sri Lanka was grateful for the cooperation and support given by Russiain the international forums and both countries held discussions on vital international issues, the ministry said.

Delivering a speech at the BMICH after the meetings, Minister Lavrov said Russiais interested in strengthening trade and cultural relations with the island nation.

Russians are traditionally fond of Ceylon tea and as you know we are the world largest buyer of this famous product. We would also like to see more goods from Russia in your country, as well as to bring here in bigger way our experience in executing industrial and infrastructure projects, he said.

Sri Lankahas been conducting roadshows around the world, since 2008, to attract oil companies to come and explore petroleum oil in the Indian Ocean.

Petroleum Minister A.H.M. Fowzie earlier told BBC that the government is assured that there are over one billion barrels of oil to be harvested from Sri Lanka`s soil.

We have obtained data from a Norwegian Company based in Australia
assuring oil deposits of billion barrels. We are calling for tenders to explore it on three blocks, he said.

Government earlier announced Sri Lanka had eight exploration blocks in the Mannar basin, only three of which were up for tender - at the roadshows - while another two have already been assigned to Chinaand India.

Sri Lankahas never had any oil or natural gas deposits in its soil prior to the present survey results. Earlier in the seventies oil exploration in the Mannar boosted hopes of a discovery.
(BBC)