Sri Lanka to Make $2.25bn from Investments on Oil Blocks in Mannar Basin

16th March 2012, www.dailynews.lk, By Ramani Kangaraarachchi

Sri Lanka is expected to generate over US$ 2.25 billion through investments from shallow water oil blocks in the Mannar basin shortly. The investment will be towards off shore oil exploration,drilling and production and infrastructure in the next five years.

Speaking at a forum organized by the National Chamber of Commerce on 'new business opportunities arising out of oil exploration in Sri Lanka,' Wednesday, Director General, Petroleum Resources Development Saliya Wickramasuriya said an international licensing round for some of the remaining blocks, will be launched during the next three months. Only the shallow water blocks in the Mannar Basin, closest to the coast, will be auctioned initially and he hoped that there will be many companies coming forward to invest in Sri Lanka.

Wickramasuriya said there will be a large number of upcoming business opportunities in the areas such as aviation, environment, catering and transportation within Sri Lanka to the right partners. He said that a considerable amount has to be invested on market research and risk management is also a huge area that has to be carefully handled.

Cairn is in the process of conducting more seismic surveys in preparation to drill a few more wells to properly define the reservoir potential ahead of commercial production. Last year Cairn India, was awarded one block in the first licensing round and , found gas and condensate in the first two test wells.

Related Info :

• Cairn Lanka to Start 2nd Phase of Oil Exploration in Sri Lanka's Mannar Basin. Oil Wells to be Drilled in 2013

• One Billion Barrels of Oil in Sri Lanka Mannar Basin - Director General of Sri Lanka's Petroleum Resources

Cairn Lanka to Start 2nd Phase of Oil Exploration in Sri Lanka's Mannar Basin. Oil Wells to be Drilled in 2013

08th March 2012, www.island.lk

Cairn Lanka has commenced the second phase of oil exploration in the Mannar Basin and oil wells are likely to be drilled in 2013 after another round of seismic studies.

Cairn Lanka, the wholly owned subsidiary of Cairn India Limited successfully completed the first phase of the exploration campaign on Sri Lanka’s side of the Mannar Basin on Block SL-2007-01-001 and has delivered two back to back discoveries.

According to our sources here, the seismic study has already commenced in the Mannar block, and the seismic vessel Pacific Explorer has begun its seismic activity. The 3D seismic contract has been awarded to Petroleum Geo-Services (PGS). The seismic survey will be followed by a technical evaluation of the data, data interpretation and then with another drilling campaign. An international tender for this seismic programme was floated by the company last year during the first phase of drilling campaign.

Cairn Lanka had spent over US$ 150 million in the first phase of the drilling campaign that resulted in two gas discoveries. The initial estimate for the programme was around US$ 110 million.

The drilling campaign in the second phase will be undertaken during the fair weather window and it is learnt that Cairn Lanka has already initiated its legwork for this second phase with a plan for a deepwater drilling campaign. According to the scope of the international tender, the work programme will involve one firm well and have provisions for three optional wells too, in the Gulf of Mannar. It is likely to commence in 2013, post completion of data interpretation and other pre-drilling tests and studies.

Cairn Lanka has also floated an international tender inviting experienced services contractors to provide services for this deepwater drilling campaign.

The company has invited an international tender bid for the drilling operation. A series of stringent guidelines have been laid out for the contractors who need to comply with, and should have a successful track record to be considered. Special emphasis is also being laid on the contractor’s ability to adhere to the "stringent" health, safety and environmental management requirements.

According to industry sources, the company is looking for a Drillship or Semisubmersible Rig – that is capable of operating in water depths between 800 to 1700 metres. The rig should have a capability to drill a maximum depth of 5500 m.

The first phase of the exploration programme involved the acquisition, processing and interpretation of 1,753 sq km of 3D seismic data and a three well deep water drilling programme. The seismic programme exceeded the phase I commitment by 20% and the drilling programme exceeded the drilling depth commitment by 50%. The first phase of the programme resulted in two successive gas and condensate discoveries: the CLPL-Dorado-91H/1z well and, the CLPL-Barracuda-1G/1 well.

Related Info :
• One Billion Barrels of Oil in Sri Lanka Mannar Basin - Director General of Sri Lanka's Petroleum Resources

• Cairn India Calls for Oil Spill Response Proposals as It Drills First Well off Sri Lanka in August
 
• Sri Lanka's Commercial Production of Oil Could Start by 2017 - Professor Stuart Burley of Cairn India

Cairn India Calls for Oil Spill Response Proposals as It Drills First Well off Sri Lanka in August

11th July 2011, www.lankabusinessonline.com

Cairn India which is exploring for petroleum resources off Sri Lanka has called for proposals for oil spill response equipment and services as it prepares to drill its first well in August this year.

The company announcement said delivery of equipment could be either at Colombo or Chennai in south India indicating its support operation for offshore wells in the Gulf of Mannar might be based in India.

Sri Lankan companies interested in the oil industry business had been hoping to win support contracts for the exploration and subsequent production phase.

Cairn India (CIL) and its subsidiary Cairn Lanka (CLPL) are seeking Expressions of Interest from experienced offshore oil spill response equipment manufacturers and service providers to sell offshore oil spill response equipment to support exploratory offshore drilling.

"CIL and CLPL are exploring an option to buy offshore oil spill equipment which includes protective booms, containment booms, skimmers along with power packs, inflatable storage tanks and beach cleaning kits.

"CIL is looking for delivery of the equipment either at Colombo, Sri Lanka or Chennai, India and storing it in the company warehouse," the announcement said.

"However, CIL/CLPL reserves the right to decide the location of delivery."

The contractor would be required to provide support services to include maintenance and training on use of the equipment for Cairn's oil spill response crew.

Cairn is set to starting drilling three test wells off the island's north-west coast in August.

Related Info :

• Sri Lanka's Commercial Production of Oil Could Start by 2017 - Professor Stuart Burley of Cairn India

• Cairn to Start Drilling for Oil & Gas off Sri Lanka’s Northwestern Coast in July

• One Billion Barrels of Oil in Sri Lanka Mannar Basin - Director General of Sri Lanka's Petroleum Resources