Reports indicate that the Government of Sri Lanka is scheduled to sign an agreement with ‘Cairn India’ to explore for oil and natural gas in the Mannar Basin tomorrow. The bloc that comes under the agreement is ‘SL 2007-01-001 that covers approximately 3,400 Km2 in water depths of 200 meters to 1800 meters.
[ad#200x200img]
However, this agreement is signed without any transparency. The evaluation of tenders for the deal had been done in secrecy. There is no transparency regarding how the company was selected, details in the agreement, the benefits the country gains from the deal or how the oil reserve is shared.
Also, assessment of the environmental, social, economic and political impacts the deal would create has not been done.
In spite of the pledge the Minister of Petroleum & Petroleum Resources Development made that the Parliament would be made aware of all dealings with regard to oil exploration, nothing has been said regarding this deal in the Parliament.
Even the agreement reached by the then UNP government with T.G.S. NOPEC of Norway regarding oil exploration was done is secrecy. Later it was revealed that the agreement was perilous to the country and to withdraw from the agreement the country had to pay US$10 million to NOPC.
When disasters countries with abundant oil reserves such as Nigeria, Sudan and Papua New Guinea underwent as a result of harmful agreements is considered, it is definite that these agreements would be crucial for the future of the country.
Lanka Truth