Cairn India bid for oil exploration successful

by L. S. A. Wedaarachchi

[email protected]

Cairn India Ltd., was the successful bidder for oil exploration in the first block of Mannar Basin, said the Secretary, Ministry of Petroleum and Petroleum Resources Development A. P. A. Gunasekera.

The Secretary said that the first meeting between the representatives of Cairn India Ltd and the government was held last Monday.

The oil exploration permit will be issued after the agreement is signed, he said.

When oil exploration work commences, it would mark the beginning of oil exploration in Sri Lanka after a lapse of 25 years. Close to 18,000 Km of 2D seismic data was obtained and seven wells were drilled from 1967-1983. Although hydrocarbon shores were encountered in one of the wells in Pesalai no commercial hydrocarbon accumulations were discovered.

The Government last year called for international tenders for three blocks in the Mannar basin.

Six bids were received from Cairn India Ltd., Niko Resources (Cyprus) Ltd., and ONGO (Videsh) Ltd., for three blocks. The Cabinet of Ministers decided to evaluate only the first block for Petroleum exploration on the grounds that no sufficient bids were received for No. 2 and No. 3 blocks.