Oil exploration program:
CAIRN Lanka to launch second phase
Chicku - Oil drillship
CAIRN Lanka (Pvt.) Ltd. will launch its second phase of the oil
exploration program after the successful completion of the first phase
in the Mannar basin, block SL 2007-01-001.
It includes the acquisition processing and interpretation of 1753 sq.
Km 3D seismic data and a three deep water drilling program.
The seismic program exceeded the phase 1 commitment by 20 percent
while drilling program exceeded the drilling depth commitment by 50
percent, a spokesman CAIRN Lanka said.
This program led to the discovery of gas with liquid hydrocarbon in
the CLPL Dorado-91H/IZ well and CLPL-Barracuda IG/1 well. The third well
CLPL-Dorado North 1-82K/1 was plugged and abandoned as a dry hole.
The operations were conducted in keeping with the highest global
standards. The successful drilling program.
The first in Sri Lanka in 30 years had established a working
petroleum system in the frontier Mannar basin, he said.
CAIRN Lanka has advertised for international providers to supply 3D
marine seismic data in the Mannar basin. CAIRN has been given the
licence to explore oil and gas in block SL 2007-07-001. According to the
agreement between CAIRN Lanka and the Government which is valid for
eight years, three oil wells will be drilled during phase one and the
fourth and fifth in phase two and three.
Oil exploration is highly capital-intensive and one well alone may
cost between US$ 30-50 million and CAIRN invested over US$ 150 million
in exploration activities at the end of their first phase, a spokesman
for the Petroleum Resources Development Secretariat (PRDS) said
Off shore oil Raava - Oil rig in the oil and gas fields
He said that international exploration and production companies (E&P
Companies) have shown a keen interest in the exploration work due to the
discovery of gas with liquid hydrocarbon.
He said that international oil exploration companies such as ONGC,
Gazprom, Chevron and total have shown varying degrees of interest in Sri
Lanka petroleum activity. Sri Lanka has held discussions with Russia,
Vietnam and the Ukranian governments on oil exploration in the Mannar
basin, he said.
Since Sri Lanka does not produces oil, it depends on imports which
had cost Rs. 3 billion in 2010 alone which was 40 percent more than in
2009, according to the Central Bank. Since the end of terrorism, the
government has launched offshore oil and gas exploration.
Although American and Russian companies explored the Cauvery basin
off the Northern shore for oil from 1960's to 1980's only traces were
found. However, terrorist violence dampened exploration activities.
There are nearly 30 wells operating on the India side of the Cauvery
Basin in the Northern Coast.
The Calgary based Bengal Energy Ltd. has exploration rights for 1362
sq. km. there. Sri Lanka is however optimistic about the prospects of
her own oil potential.
In 2001, the CPC and TGSNOPEC signed an agreement to collect 1100 km
of 2D seismic data in the Mannar Basin.
The data was acquired in June - July 2001 and a detailed
interpretation report was produced by New South Global in 2002 under
contract to TGSNOPEC. The report highlighted the petroleum potential of
the Mannar Basin and encouraged TGSNOPEC to collect additional 4000 km
seismic data in the basin in 2005. These two TGSNOPEC data acquisitions
caused exploration companies to show at interest in oil exploration in