Colombo, 09 July, (Asiantribune.com): The Sri Lankan Government has decided to grant two Black Gold blocks to India and China on a preferential basis. "The Cabinet decision permitting the offering was granted last Wednesday," Minister of Petroleum Resources Development AH.M. Fowzie told the "Asian Tribune."

He however he refrained from commenting further on the details of the offering, but sources said that the deal could be a 'Government to Government deal.' Four more blocks remain and bidding is expected to commence shortly.

Sources also claimed that the Indian owned Oil and Natural Gas Corporation (ONGC) would likely be the chosen company, although India's Reliance Group has also been eyeing the possibility of carrying out oil exploration in Sri Lanka. It was still unclear as to which Chinese company would be given the contract.

"Several companies from the United Kingdom and the United States have also expressed their interest in bidding for drilling rights here," sources claimed.

Surveys conducted in the Gulf of Mannar, West of Sri Lanka shows the presence of massive oil deposits of at least 50 million barrels.

Prospects of striking Black Gold in Sri Lanka revived January 2001, after the Asian Development Bank funded the 'oil exploration
promotional project' which consisted of several components, including the reviewing of hydro carbon prospects in Sri Lanka and to review petroleum exploration legislation.

- Asian Tribune -