Press briefing of Cabinet Decision taken on 2021-11-23

Establishment of a National Oil & Gas Company

- It has been confirmed that there are petroleum and natural gas deposits available in the country, according to the explorations conducted in the M2 block of the Mannar Basin during the period from 2011 to 2013. Opportunities may arise in reducing reliance on importation of fossil fuel to meet domestic requirements by producing petroleum and natural gas and in earning foreign currency by becoming an exporter of natural gas in future. It has been declared by the “National Policy on Natural Gas of Sri Lanka” that action will be taken by the Government to establish a National Gas Company under the Public‑Private Partnership Model in respect of storage, construction of pipelines, development, ownership and operation of transport and distribution infrastructure facilities including local gas exploration and production, enabling to engage in exploration and production activities of commercial viability. It has been planned to establish the said Company as a Subsidiary Company of the Ceylon Petroleum Corporation and the said Company will be vested with the responsibility of discharging the duties and functions assigned by Part V of the Petroleum Resources Act, No.21 of 2021. Accordingly, the proposal made by the Minister of Energy to establish the “National Oil & Gas Company” under the Companies Act, No.7 of 2007.