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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Priority: Lankan companies given opportunity to enter oil, gas industry

Priority: Lankan companies given opportunity to enter oil, gas industry

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K.Haputantri

K.Haputantri
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Priority: Lankan companies given opportunity to enter oil, gas industry
The Island September 6, 2012, 8:36 pm

Cairn Lanka, fully owned subsidy of Cairn India, says it is committed to use Sri Lankan companies in its contracts and procurements in the emerging oil and gas industry in the country.

Cairn Lanka (Pvt) Limited, the country’s active oil and gas exploration company, organised a vendor partnership programme in Colombo yesterday (06). The objective of the conference was to encourage local business partners to join Cairn in the growth of Oil & Gas sector in Sri Lanka. The ‘Colombo Partnership Meet’ emphasized how local entrepreneurs and organization can benefit from the country’s oil & gas exploration activities, the company said in statement.

Cairn Lanka part of the Cairn India Group is committed to maintaining the highest standards of corporate responsibility in its business activities. As part of this initiative, the company intends to encourage the use of Local Content in its contracts and procurement and thereby contribute to the development of local communities where Company operates. These initiatives add to local benefits generated through focused social investment.

Besides sharing an over view on the oil and gas business, the programme aimed at giving an opportunity to Sri Lankan business community to come and interact with Cairn team for a better understanding of business prospects. The programme also shared details of the upcoming Sri Lanka exploration by Cairn with the business community. The forum was used to share an elaborate understanding of Cairn Lanka’s HSE Commitment, which is integral to business, and also a key remit to be adhered to, by all partners.

Besides giving clarity on how to engage with Cairn Lanka as a vendor partner, the forum also addressed the scope of how organisations can scale up the maturity curve to work with Cairn.

"Cairn Lanka is committed to acknowledge, encourage and engage Sri Lankan business partners to help take the exploration activities to the next level. As Cairn Lanka enters into its second phase of drilling, the support and partnership from Sri Lankan vendors will be a key driver in the exploration journey," the company said.

Forty six business partners and service providers represented by more than 70 participants, attended the meet.

Cathal Daly, Head Exploration, Cairn India Group, said, "Cairn Lanka’s key objective in organizing this conference was to provide communities with an opportunity to integrate with the company’s supply-chain and benefit from the growth in the company’s operations. These long term benefits are expected to increase as the project progresses, especially in the petroleum development stages."

Sri Lanka Block Update

In the Sri Lanka Block SL 2007- 01-001, Cairn Lanka has successfully completed the first phase of exploration campaign, which resulted in two successive discoveries in the three well drilling programme. The company has entered the second phase of exploration and completed acquisition of 600 sq km of 3D seismic data. Processing of this data is underway. With the exploration drilling planned in mid 2013, tendering for the drilling rig and the associated services is in progress.

The potential commercial interest notification has been submitted for the two Discoveries i.e. the Dorado and Barracuda wells, as per the terms of the Petroleum Resource Agreement (PRA).

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