New Mannar Basin blocks likely to be rolled out for bids next year

Wednesday, 18 December 2019 03:00 - - {{hitsCtrl.values.hits}}

PRDS says data evaluation underway
Once completed more blocks likely to be tendered
Seabed quarrying operations also being considered
Awaiting reappointment of Cabinet-Appointed Negotiating Committee

By Shailendree Wickrama Adittiya

The Petroleum Resources Development Secretariat (PRDS) is anticipating opening up more blocks of the Mannar Basin to possible exploration opportunities next year, a top official revealed yesterday, with development set to begin on the M2 block within the next few months.

The Secretariat received three bids for the M2 block in the Mannar Basin and is hoping to start development and production work as soon as possible, PRDS Director General Vajira Dassanayake said.

While the closing date for the bids was 7 June, the evaluation process has been completed and the report has been sent to the Petroleum Resources Development Ministry, which has to table it with the Cabinet-Appointed Negotiation Committee (CANC). However, the process has been delayed due to the fact that the CANC is currently disbanded.

“The Secretaries got shifted around and we need the Treasury to reappoint them. Once the committee is formed, we can table it for them and thereafter it can go to Cabinet for final approval,” Dassanayake said, adding that it would be awarded only after Cabinet approval. The PRDS, which comes under the purview of the Petroleum Resources Development Ministry, also entered into a joint study agreement with French oil and gas multinational Total with the inclusion of Norwegian oil and gas company Equinor on 27 August. While the joint study agreement aims to explore the hydrocarbon potential in the JS-5 and JS-6 blocks of the Lanka Basin, Dassanayake said the data was acquired in 2018 and data processing was completed by April this year.

The interpretation work under the agreement was carried out between May and August and, currently, the PRDS is designing a survey to correspond with the previous one. “We conducted another survey in the Mannar Basin in 2018. Data processing was completed two weeks ago,” Dassanayake said. He explained that once interpretation was completed, the PRDS would decide which blocks to put out to tender.

Evaluation is also ongoing for the bid received for the M1 and C1 offshore exploration blocks for which international competitive bids were called for in May.

“We are planning a seabed quarrying operation in those areas as well in 2020,” Dassanayake added.