Sri Lanka Could Have Hydrocarbon Deposits off the Northern and Southern Coasts. Oil Exploration Activities Bring New Business to Colombo Dockyard

14th December 2009, www.island.lk, By Devan Daniel

Petroleum Minister A H M Fouzie said Sri Lanka could have hydrocarbon deposits off the Northern and Southern coasts. The Cabinet is yet to approve a paper allowing the Ministry of Petroleum and Petroleum Resources to call for bids from oil exploration companies, he said.

If all goes well, Sri Lanka’s waters could be teaming with oil exploration vessels.

The Island Financial Review spoke to Mangala P B Yapa, managing director and CEO of blue-chip ship repair and heavy engineering company, Colombo Dockyard PLC, about the potential of new business the oil exploration activities and possible off-shore oil excavations could bring the company.

"Colombo Dock Yard specialises in dry dock and offshore ship repairs and maintenance. We have also carried out repairs and maintenance to oil rigs and dredging vessels. We are focusing a lot on Dockyard General Engineering Services, which specialises in engineering, construction, maintenance and auxiliary services," Yapa said.

Yapa said oil exploration activities bring new business to other sectors as well.

"Logistics and crew transport is something we do not provide, but yes other companies in Sri Lanka could provide this service," he said.

Yapa, however, said the limiting factor would be space constraints in Colombo.

"We do not have the space in Colombo required to carry out repairs on rigs and dredging vessels. Because of the monsoons, these repairs must be carried out in calm waters. Rigs would have to be completely towed to calmer waters.

"Rigs on the Mannar Basin that need repairs cannot be towed to Trincomalee — a natural harbour — from the North so Colombo is the closest destination. Hambantota — when it is ready —would be too far as well," Yapa said.