ONGC Seeks Political Nod for Sri Lanka Gas Block Bid

Oil and Natural Gas Corp (ONGC) has sought political clearance from the ministry of external affairs (MEA) to participate in Sri Lanka’s offshore bidding rounds that are open till November 29, according to Indian daily Hindustan Times.

The move by the state owned energy major comes given the ongoing tensions with Sri Lanka and in the wake of the recent decision of Indian Prime Minister to cancel his trip to the neighbouring nation.

“India’s presence in Sri Lanka’s oil and gas sector assumes great strategic importance for us ...however, given the ongoing situation with Sri Lanka, we need to seek political clearance before ONGC goes ahead and submits its bid ...the decision rests with the MEA,” a senior petroleum ministry official told Hindustan Times.

Sri Lanka is offering 13 offshore exploration blocks in the Cauvery and Mannar basins, located to the North and West of the island nation.

Sources told the newspaper that the government is unlikely to deny permission to the company from going ahead with the bid as Indian is making all efforts to secure sufficient energy supplies to cater to the growing domestic demand.

 “Due to the strategic importance of these blocks, officials from both the petroleum and foreign ministries have been holding parleys with top officials of these countries to get allotment of these blocks on nomination basis,” the official added.

Earlier this month, a Press Trust of India report said that ONGC Videsh Ltd (OVL), overseas arm of ONGC and Cairn India Ltd are likely to bid jointly for oil and gas blocks in Sri Lanka.

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