Cairn to quit petroleum exploration in SL

10 July 2015 02:28 am Views - {{hitsCtrl.values.hits}} 8 Bookmark

CHATURANGA PRADEEP SAMARAWICKRAMA Follow

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An agreement between the Sri Lankan government and Cairn Lanka, an entity coming under the umbrella of Cairn India and holding the license for petroleum exploration in the Mannar basin, will come to an end by October.

On Wednesday, the Sri Lankan Cabinet decided to float fresh global bids to choose an investor for commercially developing natural gas deposits in the Mannar basin. Rajitha Senaratne, Cabinet spokesperson, revealed the decision of the government at a press conference in Colombo yesterday.

According to the website of the Cairn Lanka the pact, called Petroleum Resources Agreement, was signed in July 2008 between the government and the Cairn India.

An official document states that the termination of the agreement has been necessitated by the “policy decision” of the Cairn India not to go ahead with further exploration, after drilling four wells, three in 2011 and one in 2013. Natural gas was discovered in two wells, which were estimated to have the recoverable volume of around 60 billion cubic metres. The Cairn Lanka had spent $ 230 million for the exploration.

It is that easy to get investors for gas development project in a deep area such as the Mannar basin due to the prevailing price slump in the world market.

Keeping this in mind, the terms and conditions of the existing agreement will broadly be retained, according to the document.

A negotiation committee would also be constituted, Dr. Senaratne added. (The Hindu)

Comments - 8

hansro Friday, 10 July 2015 08:11 AM

I am still waiting for "Pesali" petrol.

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Bippity Boppity Boo Friday, 10 July 2015 08:27 AM

The oil exploration is a big joke. It is just a highly expensive political move. Oil exploration in the Mannar basin started in the 60s under the Srima government. I can remember the SLFP May Day rallies with old rigs as floats. Still no oil.

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Sikuru Friday, 10 July 2015 08:28 AM

Cairn is not suitable for this job, it is good that they are leaving, a company like Exxon is needed

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Push Friday, 10 July 2015 08:43 AM

In 7 long years if there is no tangible benefit to Sri Lanka it is good they depart.

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Vimukthi Friday, 10 July 2015 08:59 AM

Dear minister, pl. investigate why the helicopter operation during the drilling process was done thru COSMOS AVIATION that belongs to Sajin Vass Gunawardena when the capability was there with SL Airforce. COSMOS used SL Airforce helicopters and pilots and profited from this...Catch the culprits who have misused the powers

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nishan Friday, 10 July 2015 02:09 PM

Why the government of sri lanka is still waiting without actually calling the bids to do the drilling and do the processing of crude oil.

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Sri Lankan Friday, 10 July 2015 03:22 PM

Agreement signed in 2008 and after 07 long years it is being abandoned.How much has been expended and who has benefited via DM Android App

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Sikuru Friday, 10 July 2015 03:51 PM

The bidding is expected to start soon, some companies are already interested

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