UPDATE 1-Three firms bid for S.Lanka oil exploration-oilmin

Adds details on blocks, background)

By Shihar Aneez

COLOMBO, Jan 31 (Reuters) - Sri Lanka has received six tenders from three foreign companies for oil exploration in its northwestern offshore Mannar basin, the island's petroleum resource minister said on Thursday.

"We have got six tenders. They are from Cairn India (CAIL.BO: Quote, Profile, Research), ONGC Videsh (ONGC.BO: Quote, Profile, Research) from India and Nico Resources from Cyprus," Minister A.H.M. Fowzie told Reuters.

"All three companies have bid for the first block, while Cairn India and Nico Resources have bid for the second block. The third block has received only one bid from Nico Resources."

The first block is the smallest out of the three with 3338.1 square kilometres, while the third block is the largest with an area of 4126.5 square kilometres.

Sri Lanka has eight exploration blocks in the Mannar basin, three of which are to be given for exploration once the government decides on a successful bidder.

Two have been assigned to China and India on nomination basis. The government plans to delay bidding on the last three blocks to get higher revenue.

Oil and Natural Gas Corp (ONGC), which was offered the block nominated to India said in September it was not interested in the assigned block, citing low prospectivity and the fact that Sri Lanka was asking for a big signature bonus.