ECONOMYNEXT – Sri Lanka will auction an oil block in the Mannar basin where traces of natural gas had already been found in early 2022, Energy Minister Udaya Gammanpila said.
“At the beginning of 2022 we will have an auction to get investors for the M2 block,” Minister Gammanpila told parliament.
Cairn Lanka, a unit of Cairn India found the presence of natural gas in two exploration wells labelled Dorado and Barracuda, but did not declare a commercial discovery to develop. LNG prices at the time were lower than now.
Sri Lanka was also working with Schlumberger, an oil and gas services company, to re-analyze M2 oil exploration data.
“This is at no cost to the government,” he said.
Minister Gammanpila said the petroleum exploration office had engaged an experienced consultant to prepare a feasibility report on the Dorado well.
The Dorado-91H/1z well was drilled to 4741 metres and had found 24 metres of hydrocarbon-bearing Cretaceous sandstone in three zones between the depths of 4067 metres and 4206 metres. They were said to be gas bearing with some liquid hydrocarbon potential.
Barracuda-1G/1 was drilled to a depth of 4741 metres and had fond 24 metres of hydrocarbon-bearing Cretaceous sandstone in three zones between the depths of 4067 metres and 4206 metres. The reservoirs are mostly gas-bearing with some additional liquid hydrocarbon potential. (Colombo/Nov23/2021)