Sri Lanka to revive oil exploration, bidding round in May 2018
ECONOMYNEXT – Sri Lanka will call fresh bids for an oil exploration block off the island’s Northwestern coast in May 2018, where traces of natural gas was discovered earlier, Cabinet spokesman Minister Rajitha Senaratne said.
Cairn India had discovered gas reserves in the deep sea Mannar Basin several years ago but pulled the plug after two-years of exploration and investment of $200 million as LNG prices fell.
Sri Lanka’s Ministry of Petroleum Resources Development will also enter into agreements with global oil companies for land and offshore exploration work long the Eastern coastal belt, a statement of Cabinet decisions said Wednesday.
With global oil prices rising, the government is keen to revive and fast-track the search for petroleum resources, Minister Senaratne said.
Cairn India has discovered a well estimated to contain 2 trillion cubic feet of natural gas and 10 million barrels of condensate. (COLOMBO, 11 April, 2018)