July 30, Colombo: Sri Lanka's Petroleum Ministry today said that an Indian company would commence drilling for oil in the sea off the northwestern coast early next year.

Cairn Sri Lanka (Pvt) Ltd, which is a subsidiary of Cairn India (Pvt. Ltd), is to commence drilling the first three oil wells in the Mannar Basin in January.

The Petroleum Resources Development Committee (PRDC) on behalf of Sri Lanka had signed six contracts with Cairn Sri Lanka.

Petroleum Minister Susil Premajayantha said Cairn Sri Lanka is calling for bidders globally to undertake sub contracts for the eight-year oil exploration project, which is to be conducted in three stages.

Five blocks in the Mannar Basin situated off the North West coast have been lined up for this year's international tenders.

The government signed a Petroleum Resources Agreement in 2008 with Cairn India to explore and produce hydro - carbon and natural gas in the Mannar Basin in Northern Sri Lanka.

According to the Agreement, Cairn India will start exploration activities in one of the 8 blocks in the Mannar Basin which covers 3,400 sq. km. at depths between 200 to 1,800 meters.

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