India's OVL Bids for Three Sri Lanka Blocks

ONGC Videsh Ltd (OVL), the overseas arm of state-owned Oil and Natural Gas Corporation (ONGC), has bid for three blocks in Sri Lanka, reports The Telegraph newspaper.

Of the 13 blocks on offer, OVL has bid for three blocks — M4, M5 and M6 — in the Mannar basin, sources told the newspaper.

The bidding in the second licensing round for oil and gas blocks in Sri Lanka closed last week and the blocks are likely to be awarded in the first quarter of 2014.

“It is important that OVL and other Indian oil companies take active interest in the hydrocarbon sector of Sri Lanka, keeping in mind the strategic importance and location of the island nation,” The Telegraph quoted a senior oil ministry official as saying.

Cairn India already has a block in the Mannar basin where it has made two gas discoveries

Besides the 13 shallow water blocks, Sri Lanka has also offered six ultra-deepwater blocks off India’s south-eastern coast for a joint study of their hydrocarbon potential.

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