Sri Lanka delays bid awards

Sri Lanka has delayed evaluating bids for two oil exploration blocks in its northwestern offshore Mannar basin and will evaluate the one with the most competition first, said the country’s Petroleum Resource Minister AHM Fowzie today.

"We decide only to evaluate where there is a competition of three ... once that is over we will consider the other two," said Fowzie to Reuters.

In January, Sri Lanka received six tenders from Cairn Energy, ONGC and Nico Resources for the three blocks offered.

All three companies bid for the first block, while Cairn and Nico bid for the second block. The third block has only received a bid from Nico Resources.

"The bids are before the technical evaluation committee and once they study and submit a report to the cabinet negotiating committee we will decide," Fowzie said

A non-oil producing nation, Sri Lanka expects its first commercial crude oil production by 2010.