Overview
The mandate of the benefits department is to enforce Sri Lanka benefits provisions in the legislation and the Petroleum Resource Agreements(PRAs). These benefits include Employment, Goods and Services, Training & Education, Research & Development and Technology Transfer. The contractors’ exploration expenditure in Sri Lanka and the government income resulting from payments made by the Contractor associated with bonuses, taxes, levies, data purchase, bid deposits, royalty payments and profit share are added financial benefits to Sri Lanka.
Further the Petroleum Resources Act and PRAs emphasize the Contractors' obligations towards the following benefits.
- Promote employing the citizens of Sri Lanka in offshore activities to the maximum extent possible with the Contractor and the Sub-contractors.
- Implementation of annual training programs for Sri Lankan Nationals in each phase and level of petroleum operations.
- Give preference to the purchase and use of goods manufactured, produced or supplied in Sri Lanka provided that such goods are available on terms equal to or better than imported goods with respect to timing of delivery, quality, quantity, price and other terms.
- Employ Sri Lankan Sub-Contractors having the required skills or expertise, to the maximum extent possible.
- Rendering of technical assistance and make available commercially proven technical information for use in Sri Lanka by the PRDS or any company nominated by PRDS
- Make an annual contribution to an Environmental Fund to support Environmental Research.
These long term benefits are apt to increase as the project progress, especially in the Petroleum Development and Production stages.
A Benefits Plan outlining the associated goods & services and education and training options earmarked for Sri Lankan Nationals is required to be submitted by the Contractor at the beginning of each financial year. Subsequent benefits statements outlining the achievements made in utilizing Sri Lankan resources during the financial year concerned also must be submitted after the end of that financial year.
The PRA with Cairn Lanka has emphasised the training and use of Sri Lankan nationals in the petroleum industry and the maximum use of goods and services from Sri Lanka.