Offshore blocks for global oil-gas investors

The Government will shortly offer offshore blocks of the Cauvery and Mannar basins to global oil and gas investors, President Mahinda Rajapaksa has told the Cabinet.

This is with Sri Lanka showcasing its second batch of offshore blocks at CERA Week, the global energy industry’s premier event in Houston, Texas, early this month.

The Government’s foray was notwithstanding its bitter criticism over the United States moving a second resolution against Sri Lanka at the UN Human Rights Council sessions in Geneva. Both events took place simultaneously.

The showcasing in Houston was carried out by IHS Global Incorporated, a business consulting firm, and the Petroleum Resources Development Secretariat (PRDS) of the Government. President Rajapaksa has told the ministers in a note that the consulting firm had “recommended certain refinements to Sri Lanka’s existing regimes to make them more competitive.” The PRDS, he has noted, had advised Global Incorporated to announce the availability of maximum offshore acreage in the Mannar and Cauvery basins.

Earlier the Cabinet had de- cided to postpone the award of further offshore blocks until “after the results of three planned exploration wells were known.” The Indian firm Cairn’s first and second well in exploration block in the Mannar basin resulted in gas discoveries, although the third well was dry. President Rajapaksa said that Cairn notified Commercial Interest in the first two wells.

The consultancy firm has been tasked to advise in selecting the number and location of exploration blocks to be offered review the existing Model Petroleum Resources Agreement on the basis of GOSL experience review the existing computer model for economic analysis of petroleum exploration/development projects, and assist in conducting the Licensing Round including advertising, road shows, data rooms and meetings.