The government is in discussion with Reliance Industries led by Indian bussiness tycoon Mukesh Ambani to explore of oil in the Mannar basin.

“We are in talks with Reliance for petroleum exploration,” said the Hindu quoting the Minister for Investment Promotion Navin Dissanayake.

The Minister would be visiting Mumbai tomorrow to meet senior Reliance Industries officials.

“We have identified couple of blocks exclusively for India,” Minister said, adding that Reliance Industries has shown interest in the Sri Lankan oil fields.

On the size of the proposed deal with Reliance, he said “for exploration Cairns India took one block that was of $400 million. So, if Reliance is coming it will be into that figure at least”.

The oil blocks which Sri Lanka has offered to the Reliance Group are located in Mannar and Southern basins, the visiting minister said.

He also said that the government was talking with Aditya Birla Group for setting up a plant for manufacturing of carbon black, a product used in tyre manufacturing.