Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
Tuesday, 12 October 2021 02:27 - - {{hitsCtrl.values.hits}}
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Energy Minister Udaya Gammanpila
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The Government is to call for a fresh round of bids to develop oil and natural gas discoveries in the M2 Block of the Mannar Basin, eyeing to attract top international companies.
“We are expecting to offer an international licensing round for the appraisal and development of natural gas discoveries in M2 by January next year,” Energy Minister Udaya Gammanpila told a media briefing yesterday.
Petroleum Resources Development Secretariat (PRDS) has identified several blocks for offshore oil exploration in the Mannar Basin, the Cauvery Basin, and the Lanka Basin.
The Minister said several well-known companies have already expressed interest in the mapped blocks.
“The two test wells, Dorado and Barracuda have produced natural gas,” Gammanpila added.
“Our aim is to find gas within next three years,” he added.
In a Gazette notification, the Ministry published a map of blocks for joint exploration for oil and gas in the Mannar Basin recently. The map contains 873 blocks of 15x15 km each and will enable investors to select preferred plots for exploration without difficulty.
The newly-published map and process is aimed at attracting the top 20 oil and gas companies in the world to invest in the sector. The project has potential to deliver over two billion barrels of oil and nine trillion cubic feet of natural gas, it is estimated.
The Minister also said the Petroleum Resources Bill, which was passed with amendments last week, would enable the regulation of domestic petroleum resources through modern exploration, development and management.
The Government introduced the Bill to facilitate the establishment of a Petroleum Development Authority and the formulation of a national policy on the upstream petroleum industry. The new Bill will replace the Petroleum Resources Act of 2003.
Based on data acquired from seismic surveys, the Government estimates that there are over one million barrels of oil resources in a 30,000 square km area in northern waters.
On two previous occasions, in 2017 and 2019, successive governments had called for Expressions of Interest (EOIs) for international partners to undertake the appraisal and development of gas discoveries and prospects in Block M2, but the attempts proved futile due to various reasons.
