In the wake of the Sri Lankan government preparing for offshore petroleum exploration , a leading Norwegian expert in the field , said that it is a risky investment when the world is moving towards renewable energy sources more and more.
In an interview with Daily Mirror, he said Prof. Peter Mosby Haugan who is the Policy Director of Institute of Marine Research and University of Bergen in Norway, struck a note of caution against investment in the upstream petroleum development. He arrived in Sri Lanka to attend an international seminar organized by Pathfinder Foundation.
“It is a risky investment. It takes time. That also takes time to develop. You invest in infrastructure which only requires you to use it for a long time. If you invest in an oil platform or if you invest in a pipeline, it is very (19:48) costly. Then you are trapped a little bit. In that economy, this will still continue,” he said.
And at the same time, he said renewable energy and solar panels are becoming less expensive.
“We see solar panels and other renewable energy becoming less expensive. So, I would be careful in investing in petroleum,” he said.
Earlier, the government said that it would go for international biddings for investment in offshore petroleum exploration. The government is looking for a marketing consultant ahead of starting a new licensing round for offshore oil and gas exploration blocks in Mannar basin. Cabinet approval has also been given in this regard.
An exploration and drilling conducted by Cairn Sri Lanka (Pvt) Ltd, a subsidiary of Cairn India (Private) Company, in 2011, found 2 natural gas deposits and the existence of a viable hydrocarbon system in the M2 exploration block of the Basin.