Indian Oil, Ceylon Petroleum Set to Form JV

Indian Oil Corporation (IOC) and Ceylon Petroleum Corporation (CPC) are set to form a joint venture (JV) for cooperation in the oil and gas sector.

One of the initiatives of the JV could be of supply of LNG to Sri Lanka by Petronet LNG to feed power plants in that country, The Hindu newspaper reported. This would involve setting up of LNG unloading and re-gasification terminal on the Sri Lankan coast.

The decision to form the joint venture was taken following a meeting between the India’s Petroleum Secretary, Vivek Rae, and the Ministry of Finance and Planning and Secretary, Ministry of Economic Development, Sri Lanka, P. B. Jayasundara, recently, the newspaper said.

During the meeting India also raised the issue of bidding of Mannar and Cauvery basin blocks.

The Sri Lankan side had earlier stated that M1 and M3 blocks would be allocated to India on nomination basis. However, they have now been put up for bidding.

Indian oil companies were advised to participate in the bidding rounds since what had been announced could not be taken back, The Hindu said.