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Friday, 29 September 2017 - 13:30
New petroleum exploration development plan mooted
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The Petroleum Resources Development Secretariat says it plans to move forward with a strategic oil and gas exploration and development plan.

It will prioritize short, medium and long-term Foreign Direct Investment projects.

The PRDS said it will the joint study with TOTAL of France off the East coast – Blocks JS5 & JS6 and steps will be taken to commercialize natural gas discoveries in Block M2 of the Mannar Basin.

The acquisition, marketing and licensing of 2D & 3D seismic, gravity and gravity magnetic data on a multi-client basis in several offshore locations covering three demarcated sedimentary basins Mannar, Cauvery and Lanka Basins are also into plans.

The PRDS will also call Expression of Interest to explore few identified blocks in the Cauvery Basin on production sharing contractual terms.

The block contains two natural gas and condensate discoveries (Dorado and Barracuda) both of which were discovered by exploration activities in 2011.

The volumetric analysis of these two discoveries has indicated a combined potential reservoir capacity in excess of 2 TCF (Trillion Cubic feet) of natural gas and 10 million BBL (barrels) of condensate.

The economic analysis of these two discoveries indicates a very competitive gas price and about 11 oil and gas companies including few major exploration companies have already expressed their interest in this block and the Government expects to license this block by early 2018.

In terms of the final timing of first local gas production, this will depend on the gas price negotiations with future investors and the GoSL’s acceptance of a Field Development Plan based on it.

The M2 block could be a reality by around the year 2021 if the proposed bid round becomes a success and the natural gas potential timely tapped to be commercially feasible, for the commercial operations to commence.

In addition to the above discoveries, the Mannar basin has sufficiently thick and mature sedimentary deposits that may yield high-quality oil and natural gas which would be adequate for the next sixty years.

During 2008 – 2015 a sum of US$ 26 million has been spent on petroleum exploration activities for local capacity building and procurement of local goods & services by the Operator of block M2 in Mannar (ex-Cairn SL 2007-01-001).

 

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