Oil exploration in Mannar basin in February 2011

by Shanika Sriyananda

Cairn Sri Lanka (Pvt) Ltd (CSLL) will commence oil exploration in Sri Lanka with its first drilling of oil in the Mannar Basin in February 2011, Minister of Petroleum Susil Premajayantha said.

The CSLL, a subsidiary of Cairn India (Pvt) Ltd. will drill the first three oil wells of the eight blocks identified and demarcated in the Mannar Basin for oil deposits. The total estimated cost of the oil exploration project is Rs. 18 billion.

Minister Premajayantha a said that of the three blocks in the Mannar Basin, Cairn India, which met the terms and conditions of the tender procedures, secured Block C2 of the Mannar Basin in 2007, when international tenders were called.

“The other five blocks, off the North West coast will also be open to international tenders and will be announced after consulting the Petroleum Resources Development Secretariat, which had signed six contracts with the CSLL”, he said.

Minister Premajayantha said the oil deposits had been identified through three-dimensional seismic surveys.