Oil Search

by Lanka Business Online, May 28, 2009

Sri Lanka oil explorer says seismic surveys by end-2009

Cairn India said it plans to start seismic surveys in exploring for oil in Sri Lankan waters by the end of this year or in 2010 as it reported a sharp fall in quarterly profits.

The company, a unit of Britain's Cairn Energy, said its March quarter net profit plunged 84 percent to 3.9 million dollars from a year before on falling crude prices and higher costs.

The government of Sri Lanka has awarded Cairn India an exploration licence to explore for oil and natural gas in the Mannar Basin off the north-west coast.

The block covers about 3,000 square kilometres in water depths of 200 metres to 1,800 metres.

"The Sri Lankan part of the Mannar basin is an un-explored frontier petroleum province," Cairn India said in a statement accompanying its quarterly results.

"Subject to the required approvals Cairn India intends to acquire initial seismic data by the end of 2009 or in 2010."

Petroleum industry officials said monsoon weather and strong currents in the Mannar waters at this time of year do not allow seismic surveys.

Cairn India also said evaluation of Indian fields and the addition of the Sri Lanka licence had "helped its exploration portfolio grow to over 1,400 million barrels of oil equivalent unrisked prospective resources, spread over the full range of operating environments, risk and basin settings."

It also said that over the next 12 months further drilling and seismic programmes are planned.

"Drilling is scheduled onshore in the KG (Krishna-Godavari) basin, with acquisition of 3D seismic totalling 1,800 square kilometres to commence offshore India and in Sri Lanka."

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June 5, 2008. Cairn India said in a statement it had been given Block SL 2007-01-001 which covers 3,400 square kilometres at depths of between 200 to 1,800 metres,

Sri Lanka held back two other blocks which had been offered in the same bidding round, citing insufficient interest from bidders.

Cairn India has been focusing on south Asia, especially India where it has interests in 15 blocks.

The company says it operates the largest producing oil field in the Indian private sector.