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Vietnam Requests Sri Lanka to Stop Offshore Oil Exploration

Vietnam has asked the Sri Lankan government for a block for oil and natural gas exploration activities in the Indian Ocean Mannar basin and expressed confidence that that Sri Lanka might accede to the request, as it is rich in both resources.

Vietnam's National Oil and Gas Group's Vice President Phan Nhu Khan told journalists in the Sri Lankan capital Colombo, "We see lot of potential in Sri Lanka as our preliminary examinations and seismic data have shown in the Cavari basin and our geologists are of similar opinion of finding gas and oil there. We are looking for opportunities for upstream development and the Sri Lanka government has approved it in principle with the signing of several memoranda of understating between the two countries," Colombo’s The Island newspaper reported.

Khan added that the state owned Vietnam's National Oil and Gas Group's, which produced 30 percent of Vietnam's oil output had expanded its regional oil activities to include Indonesia, Malaysia and Myanmar.

On 15 October eight cooperation agreements between Vietnam and Sri Lanka covering national defense, trade, oil and natural gas collaboration were signed during Vietnamese President Truong Tan Sang's visit to Sri Lanka.

By. Joao Peixe, Deputy Editor OilPrice.com



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