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French oil giant to explore N-E seas
View(s):A French multinational oil and gas consortium is to jointly explore with Sri Lanka for petroleum resources in the strategic seas east of Jaffna extending southwards through Trincomalee and Batticaloa. For this purpose, the Petroleum Resources Development Committee (PRDC) which functions under President Mahinda Rajapaksa, wants to enter into a Joint Study Agreement with Total E & P Activities Petrolieres of Paris.
The French multinational integrated oil and natural gas company is identified as one of “six majors” in the world in terms of revenue. The firm responded to a call for proposals by the Sri Lanka Government. This is to determine ‘hydrocarbon potential of ultra-deep offshore blocks’ of Sri Lanka waters that are not covered by current licensing rounds.
In the event of confirmation of hydrocarbon potential, President Rajapaksa has told his ministers, the French company would submit a proposal and negotiate with the Government for a Petroleum Resources Agreement. This is to carry out further exploration and development, he has said. Mr. Rajapaksa has said the French multinational would be wholly responsible to meet the cost for the conduct of the Joint Study Programme. Technically the blocks assigned to the French company are JS5 and JS 6.