Drilling on second oil well in progress

by.S. Ananda WEDAARACHCHI

The drilling of the second oil well which commenced in the first week this month in Block No. 2, Mannar Basin is in progress, a Petroleum Industries Ministry spokesman said.

He said that the report on the discovery of natural gas in the first oil well of the same block will be released by CAIRN Lanka Ltd shortly.

The report is due to be presented to the government within five months according to the agreement signed by the government with CAIRN Lanka Ltd, he said.

This report will disclose the commercial viability of the natural gas deposit, he said.

The third well will also be drilled by CAIRN Lanka Ltd before April 2012, he said. The discovery of gas has attracted top international bidders. Russia's Gazprom and Vietnam's Petrovietnam are due to join Sri Lanka's oil and gas exploration work.

The government held discussions with the Russian and Vietnamese governments recently in this connection.