Colombo: Following up on a $ 100 million investment in Sri Lanka's oil retail sector, Petroleum and Natural Gas Minister Ram Naik on May 28 announced that India was keen on joining oil exploration in the island.

Naik said the Oil and Natural Gas Company (ONGC) had the technical expertise to carry out off shore exploration and India expected at least two blocks to be earmarked for it within Sri Lankan territorial waters.

"We would like to have two blocks on nomination. The ONGC has the capability (to prospect)," he told reporters after opening the first retail store of the Indian Oil Company's (IOC) Sri Lanka arm known as Lanka IOC.

IOC will initially take over 100 gasoline retail stores run by the Sri Lankan state-owned corporation and is planning to invest $ 100 million in expansion.

Naik would be travelling to the North Eastern port district of Trincomalee on May 29 to launch the refurbishing of a World War II vintage tank farm, which has been taken over by IOC, said.

The upgrading of the tank farm, which currently operates only 15 out of its 99 tanks, will cost IOC some $ 30 million.

Naik said they were not moved about the political situation or the stability of the island's peace bid with Tamil Tiger guerrillas and were investing in the island in the hope that there would be a settlement soon.

"A normalisation process is on in Sri Lanka and I would hope that it would be completed satisfactorily and as soon as possible," Naik said adding, "If you look at Jammu and Kashmir, people will say India is not a safe place. But we have had elections there."

PTI