Eureka! Gas & Oil deposit found in Sri Lanka

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Oct 02, 2011 (LBT) - Lankan President Mahinda Rajapakshe said today that exploration teams have found a Gas field in island nations. President Mahinda Rajapaksa announced in Kandy today (October 2) that Sri Lanka has found a natural gas field for the first time, the President’s Media stated in a release.

The Media Unit are yet to release details about the location of the gas field. . This is the first time the existence of a gas field in the country has been confirmed.

On Saturday the 6 August 2011 it was reported in media that Cairn Lanka started drilling its first well in the Mannar Basin. That time, Economic Development Minister Basil Rajapaksa has told reporters in Puttalam that if Sri Lanka is successful finding oil in Mannar Basin, which is believed to hold around one billion barrels of oil, the country would no longer have to depend on importing oil from other countries, a prospect that would save billions of dollars to the country.

Accordingly reports said that Cairn Lanka will drill three wells.

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Go to Link:http://lankabusinesstoday.com/corporate/announcements/480-discovery-notification

Oct 02, 2011 (LBT) - Cairn Lanka (Pvt) Limited, a wholly owned subsidiary of Cairn India Limited, has notified the appropriate authorities in the Government of Sri Lanka of a Gas Discovery in the CLPL Dorado- 91H/1z well, drilled in a water depth of 1354m, located in the block SL 2007-01- 001, Mannar Basin, Sri Lanka. Cairn Lanka (Pvt) Limited is the Operator and has a 100% participating interest in the block.

A gross 25m hydrocarbon column in a sandstone between the depths of 3043.8-3068.7m MD has been interpreted from log and MDT data to be predominantly gas bearing with some additional liquid hydrocarbon potential. Further drilling will be required to establish the commerciality of the discovery.

The CLPL-Dorado-91H/1z well is the first well to be drilled in Sri Lanka in 30 years and the first well to discover hydrocarbons in the country.

Sri Lanka finds a Natural Gas Deposit
http://www.lbt.lk/news/business/479-oil-a-gas-discovery

Oct 02, 2011 (LBT) - Lankan President Mahinda Rajapaksa said today that exploration teams have found a Gas field in island nation's offshore seabed close to Mannar. President Mahinda Rajapaksa announced in Kandy today (October 2) that Sri Lanka has found a natural gas field for the first time, the President’s Media stated in a release.

Rajapaksa had said that he received this 'Good News' from the drilling company Cairn Lanka on Sunday when he was preparing to visit Kandy. "The company doing test drilling in the Gulf of Mannar informed me this morning that they have found a huge deposit of (natural) gas in the sea bed" Rajapaksa had told the addressing a gathering at Kandy.

The Media Unit is yet to release details about the location of the gas field.This is the first time the existence of a gas field in the country which has a history spanning for over 6000 years has been confirmed.

On Saturday the 6 August 2011 it was reported in media that Cairn Lanka started drilling its first well in the Mannar Basin. That time, Economic Development Minister Basil Rajapaksa has told reporters in Puttalam that if Sri Lanka is successful finding oil in Mannar Basin, which is believed to hold around one billion barrels of oil, the country would no longer have to depend on importing oil from other countries, a prospect that would save billions of dollars to the country.

Accordingly reports said that Cairn Lanka will drill three wells.

That time reports outlined that in four months after drilling, company will be able to say if there is oil and gas in the basin and it will take another two years to assess how much oil and gas are there, if any.

“Altogether, if there is oil, it will take a minimum of six years to start commercial production," an official from Cairn India had told international media Reuters that time.

Cairn has said earlier this year If Sri Lanka's drilling program is successful then commercial oil production can be expected by 2014 with a billion barrels. The Company has contracted a deep-water drillship from a Japanese company to launch the project.

Cairn signed the Petroleum Resource Agreement (PRA) with the Sri Lankan government in July 2008 to explore oil and natural gas in the Mannar Basin with an investment of US$110 million, spread over three years.According to the Agreement, Cairn will start exploration activities in one of the 8 blocks in the Mannar Basin which covers 3,400 sq. km. at depths between 200 to 1,800 meters.

The company conducted a full Environmental Impact Assessment (EIA) as required by the Sri Lanka Central Environmental Authority and Marine Pollution Prevention Authority. Earlier in 2010, the company acquired 3D seismic data on 1,750 km2 area of the Mannar basin.

Mannar basin has eight oil and gas exploration blocks and two of them have been granted to China and India. Russia's largest oil company, Gazprom also has indicated plans to take part in the exploration of offshore oil in the Mannar basin.

Cairn Lanka (Private) Limited, is a wholly owned subsidiary of Cairn India that holds a 100% participating interest in the Mannar block. Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. To date, twenty five discoveries have been made in the Rajasthan block RJ-ON-90/1. Crude first flowed from the Mangala field in August 2009 and current production is currently 125,000 barrels of oil per day (bopd) The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and ONGC.

Sri Lanka gave one block each to India and China in 2007. American and Russian companies from the mid-1960s to 1984 undertook exploration work in the Cauvery basin, but no commercial oil was produced and Sri Lanka's civil war ended exploration. With the end of the 25-year war in May 2009, the $50 billion economy has focused on oil and gas exploration in its economic revival plans.

Calgary-based Bengal Energy Ltd. has exploration rights for 1,362 sq km on the Indian side of the Cauvery basin, which already has nearly 30 operating wells.

Sri Lanka currently produces no oil and is totally dependent on imports, which cost it US $ 3 billion a year.

Will have a good future

I am sure now all the western countries will now look to loot the oil from our country ...........Hope Our island will be able to take benefits from our resources !!!!!!