The Government of Sri Lanka has invited oil companies for expressions of interest to partner in the appraisal and development of gas discoveries in the M2 offshore block in the Mannar Basin.
The country’s Ministry of Petroleum Resources Development said that the 2,924-square kilometer offshore block, formerly known as Cairn SL 2007-01-001 or Block 2, was recently relinquished by Cairn India.
The block contains the Barracuda and Dorado gas-condensate discoveries and will be offered for licensing this year. Also, a data package will be available containing well data and some 2,600-square kilometers of 3D seismic coverage.
Also, in line with the Government’s plan to accelerate the development of the Mannar basin gas and condensate reserves, the Ministry signed a marketing agreement with US-based energy consultant firm IHS Energy on December 14, 2016.
This agreement will develop a marketing strategy, bid documents, and partner selection criteria for consideration by the Government of Sri Lanka specifically for the M2 block.
IHS will be assisting with the marketing of the extensive M2 3D seismic and well log data, conducting preliminary discussions with interested parties, and recommending the structure of a “mini-bid round” for the block, aimed at selecting an operator for the block by the end of November 2017.
The remainder of Sri Lankan acreage will be released in a bid round in the fourth quarter of 2017.
The Ministry said that WesternGeco is planning 2D and 3D spec seismic projects off the East coast and in the Mannar Basin before the bidding rounds along with airborne FTG and mag surveys.