Sri Lanka Invites Bids for Gas Block

Sri Lanka has invited expressions of interest to appraise and develop an offshore gas block in Mannar basin, according to a statement published by Petroleum Resource Development Secretariat (PRDS).

The 2,924 km² block SL 2007-01-001 offshore north-west Sri Lanka was first awarded to Cairn India through a bid round held in 2008. In 2013, Cairn India discovered two successive gas and condensate deposits in the Dorado and Barracuda wells in the Mannar basin. However, the company quit operations in Sri Lanka in 2015 owing to the sharp fall in energy prices.

“The block will be offered for licensing this year, including the Barracuda and Dorado gas-condensate discoveries. A data package will be available containing well data and some 2,600 sq km of 3D seismic coverage,” PRDS said February 7.

The remainder of Sri Lankan acreage will be released in a bid round in 4Q 2017. The government will undertake roadshows in Houston and London in March.

In February 2016, the French firm Total signed an agreement with the government to explore two ultra-deep water blocks off the east coast of Sri Lanka.

Shardul Sharma