ECONOMYNEXT – Sri Lanka has received bids from a consortium of ‘medium sized’ oil companies in the UK, United Arab Emirates and South East Asia to develop an off-shore block where gas deposits had already been found, an official said.
Vajira Dassanayake Director General of Sri Lanka’s Petroleum Development Secretariat said companies from Malaysia and
Indonesia were in the South East Asian consortium.
Gas deposits were discovered in the M2 block off the North Western coast of Sri Lanka by Cairn India, but it did not develop the wells as gas price fell.
Highways and Petroleum Resources Development Minister Kabir Hashim said he expected the contract to be awarded this year and field development in 2022.
The government will then have to enter into a production sharing contract with the chosen bidder.
“We hope to be LNG (liquefied natural gas) producing country,’ he said.
Separately Sri Lanka also expanded a joint-study program with Total E & P to bring in Equinor of Norway on two blocks JS5 and JS6 off the Eastern Coast of Sri Lanka on the Cauvery basin.
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Equinor will share 30 percent of the cost and help assess data, Vice President of Exploration Janne Rui said.
Total had already conducted a 5000 line kilometer 2D seismic data in 2018 and were analysis the data.
They hoped to sign a production sharing agreement next year, officials said. (Colombo/Aug27/2019)