Two Indian companies that failed in securing oil and gas exploration contracts in the Mannar Basin are believed to have filed papers in a Colombo court last week objecting to the awarding of the tender of one block to Cairn India, which is due to sign the agreement tomorrow with the government, informed sources said.

The sources said ONGC Videsh Ltd and Niko Resources (Cyprus) Ltd had filed action on the grounds that proper procedures were not adhered to in the evaluation of the tender. However Minister of Petroleum and Petroleum Resources Development Mr. A.H.M. Fowzie, when asked, told The Sunday Times FT that the case was subsequently dismissed on Monday.

However, Mr. Fowzie said the petitioner was a Sri Lankan citizen which he was unable to name and not affiliated with the two Indian companies and that the court, after reviewing the case, had found proper procedures were followed.

Mr. Fowzie said the agreement with Cairn will be signed tomorrow and that the company has already incorporated with a local partner. (NG)