In an interview with the BBC Sandeshaya, Minister A.H.M. Fawzie said the government is assured that there are over one billion barrels of oil to be harvested from Sri Lanka's soil.

"We have obtained data from a Norwegian Company based in Australia assuring oil deposits of billion barrels. We are calling for tenders to explore it on three blocks". Said the minister.

London, Houston and Kuala Lumpur

The planned roadshows in London, Houston and Kuala Lumpur this month, where application forms for licences to get oil in the Mannar basin off its north west coast will not cost much money said the minister.

According to minister Fowzie, the bidding process closes at the end of January 2008. The government expects to select the winners by April and is looking for the exploration process to start by August.

The Petroleum Resources Development Secretariat had announced that
Sri Lanka wanted a 35 percent tax from net profit, a royalty fee
of 10 percent of annual production revenue, and for a planned
national oil exploration company to take a 10 percent stake in
exploration activities.

already been assigned to China and India

Government earlier announced Sri Lanka has eight exploration blocks in the Mannar basin, only three of which are up for tender - at the roadshows - while another two have already been assigned to China and India.

"If the government is going to make a profit from it or not, we are going to go ahead with it. If we have billion barrels, it is bound to make money", Says the minister.

Sri Lanka has never had any oil or natural gas deposits in its soil prior to the present survey results. Earlier in the seventies oil exploration in the Mannar boosted hopes of a discovery.