FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» NATIONS TRUST BANK PLC (NTB.N0000)
by chathura123 Today at 6:57 pm

» Price prediction on GRAN and TAFL
by Bakkabwoi Today at 6:22 pm

» GLAS will be winner with Super Gain.
by Nandun Today at 5:20 pm

» SEMB SEMB
by stockchaser Today at 2:57 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Vishwanarth Today at 2:54 pm

» Bullish sentiment returns with market regulator's assurance
by Vishwanarth Today at 2:52 pm

» BROWNS INVESTMENTS PLC (BIL.N0000)
by Vishwanarth Today at 1:49 pm

» SOFTLOGIC HOLDINGS PLC (SHL.N0000)
by suku502 Today at 1:32 pm

» DIPD/HAYC/HAYL
by Wickyz Today at 1:19 pm

» Chart 25.02.2021
by stockback Today at 12:41 pm

» DFCC will be receiving Rs.594,538,285.50
by David VKMS Today at 12:20 pm

» is it a good time to sell expo shares
by Kipling Today at 8:39 am

» Current 2021 Februray Unit Trust/Unit Fund Per Annum percentages
by agentnrox Today at 8:13 am

» UNHCR එකේ ලොකූ ටෝක දැම්මට සමහර ඔස්තාර් ලා කියන ආර්තික සම්භාදක අරවා මේවා මුකුත් එන්නේ නැ
by judecroos Today at 7:42 am

» Leading brokers causing market downturn
by Mithooshan Today at 7:40 am

» Must watch this video - unnecessary panic
by Jana Today at 1:03 am

» LOLC HOLDINGS PLC (LOLC.N0000)
by learningthemarket Today at 12:03 am

» Daily Foreign Transactions
by Mr. X Yesterday at 11:28 pm

» Fall seven times, stand up eight.What happened, has happened. Free your mind from it. Stock market for beginners
by Asoka Samarakone Yesterday at 9:21 pm

» RICHARD PIERIS EXPORTS PLC (REXP.N0000)
by කොටස් වෙළඳපොළ2020 Yesterday at 9:06 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » A Billion Barrels Possible in the Mannar Basin!

A Billion Barrels Possible in the Mannar Basin!

Go down  Message [Page 1 of 1]

Rapaport

Rapaport
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Cairn India to Make History in Sri Lanka's Petroleum Industry

Cairn India Ltd. is poised to make history in Sri Lanka with first production from the country's offshore gas fields starting as early as 2016. The oil and gas industry is watching this development with interest as Sri Lanka prepares for the commencement of indigenous gas production. Upstream companies are also looking at potential offshore hydrocarbon prospects which would be offered in the first quarter of next year.

Cairn, until now more focused on producing from onshore fields in India, said it was engaging Sri Lankan authority on appraisal planning and commercial discussion relating to its first two offshore discoveries – the Dorado and Barracuda fields in the Mannar Basin.

“We continue to engage in appraisal planning and commercial discussions with the Sri Lankan government for monetizing the discovered gas resources and have recently secured an extension to the current exploration phase to April 2014,” said Karunakaran Hari, head of commercial, based in the company’s Gurgaon office in India.

“In the wake of Cairn’s success in the Mannar Basin, the Sri Lankan Government is currently conducting a bid round for other exploration blocks in the surrounding area,” he said.
Drilling Success in Sri Lanka

In 2007, Cairn took one of the three blocks under Sri Lanka’s first round of concession offer, and made the Dorado and Barracuda discoveries.

Cairn broke ground in Sri Lanka with two gas discoveries out of the four exploration wells drilled under phase 1 and 2 in its concession.

The gross proved and probable hydrocarbons initially in place in the Sri Lanka block was 74 million barrels of oil equivalent (MMboe) as at March 31, according to Cairn. The Dorado discovery is up for development with first gas officially expected in 2017-18 while Barracuda is being further assessed. But industry observers expected Dorado gas in 2016, with the field set to become a benchmark for future hydrocarbon developments amid intense competition for investments from other prolific basins in the region.

Sri Lanka’s Petroleum Resources Development Secretariat (PDRS) hoped that a second round of offers for upstream exploration blocks would be successful, with the organization banking on the high potential shown in Mannar basin discoveries and the prolific hydrocarbon plays in the region, especially the Bay of Bengal.

PRDS planned to lease out 13 blocks in the first quarter of next year. The challenge is drafting contracts for the blocks and building seismic data on the resources. Except for Cairn’s Dorado and Barracuda, Sri Lanka has no other proven hydrocarbon deposits and is fully dependent on imported petroleum supplies.

A subsea pipeline is one of the preferred development options for Dorado gas, which would be supplied to an onshore power plant. While Dorado gas is in an early stage of development and project details are being kept confidential, the Sri Lankan government has indicated it want to make it a model development with a captive power sector market.

Gas pricing would be a critical issue, given the big gap in international prices, especially with the U.S. gas being cheapest and Australian gas the most costly.

“Commercialization of domestic gas discoveries is likely to overhaul and transform the energy mix of the country,” Hari.

“The Mannar basin is a rifted passive margin with Mesozoic to recent sediments up to 7.5 miles (12 kilometers) in thickness. A range of structures, stratigraphic traps, and good reservoirs are known to exist in the Basin,” he said.

“Cairn’s discoveries de-risked any doubts of a viable petroleum system. Cairn feels confident that there is significant remaining hydrocarbon potential to pursue in the area – both for gas and liquid hydrocarbons,” he stressed.

Additionally, Cairn continues to look at the options and would study prospects of other blocks offered before deciding on the bidding.
Cairn Looks Beyond Sri Lanka

Cairn has also been working in Block 1 off South Africa.

“We have completed the 3D seismic and the data interpretation is on-going. The results of data interpretation will identify new prospects and decide on the timing for drilling,” Hari told Rigzone.

It has also planned 2D Seismic shooting in Block 1 next year.

Cairn took 60 percent farm-in stake in Block 1 from Petroleum, Oil and Gas Corporation of South Africa (SOC) Ltd. (PetroSA), leaving it with 40 percent share.

“With our current financial strength and capability to leverage, we continue to look into the inorganic growth opportunities globally in the E&P [exploration and production] space to further strengthen our portfolio in addition to monetizing the existing portfolio,” he said.

Cairn has planned a capital expenditure of $3 billion for its financial year 2014-2016.

Cairn currently has a portfolio of 9 onshore and offshore assets spread across frontier to mature basin in India, Sri Lanka and South Africa.

“We continue to work on our current portfolio to ramp up our current production levels and exploration,” stressed Hari.

The company continues to have an aggressive exploration program with capital expenditure allocated for the Rajasthan onshore block and other upstream assets.

Cairn is ramping up oil and gas production in India to 225,000 barrels per day in the current fiscal year, 19 percent up on the year. Rajasthan’s MBA field would account for 200,000 barrels per day.

This ambitious drive has made Cairn one of Asia’s fastest growing E&P companies in this year’s annual top 250 oil and gas awards given in Singapore by Platts, an international energy and commodity pricing and market analysis service provider.

In South Asia, Sri Lanka is set to become second most important market for Cairn. Oil importer Sri Lanka is a ready market. It imports 90,000 barrels per day of crude oil and petroleum products while its domestic market is dependent on liquefied petroleum gas (LPG).

But there would be a major change in the market and the domestic energy mix as Sri Lanka embarks on developing natural gas infrastructure. Plans were on the drawing boards while international exploration companies were expected to invest extensively on seismic surveys to determine hydrocarbon potential around the island.

The offshore blocks would be offered on attractive contractual terms, PRDS Director General Saliya Wickramasuriya said at the recent Asian Oil Week conference in Singapore.

Conceding that there was “very little data” on the offshore blocks, a number of options were however being considered such as leasing of at least two blocks on joint study basis, he added. Industry sources has compared Sri Lankan blocks to many other hydrocarbon producing basins in the region, including India’s oil and gas producing Cauvery basin.

- See more at: http://www.rigzone.com/news/oil_gas/a/130493/Cairn_India_to_Make_History_in_Sri_Lankas_Petroleum_Industry/?all=HG2#sthash.jDnfKTRF.dpuf



Last edited by Rapaport on Tue Jan 21, 2014 8:00 pm; edited 2 times in total

Rapaport

Rapaport
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
http://www.geoexpro.com/article/Cairn_Discovers_Gas_Offshore_Sri_Lanka/51f1791e.aspx

Cairn Lanka, a subsidiary of Cairn India, has struck gas in the offshore Gulf of Mannar Basin between Sri Lanka and the southern tip of peninsular India.

After a successful track record of petroleum exploration in the Barmer Basin in the Indian state of Rajasthan (see GEO ExPro, Vol. 8, No. 6), Cairn India has expanded its activities to Sri Lanka. Cairn Lanka, a subsidiary of Cairn India, has struck gas in the offshore Gulf of Mannar Basin between Sri Lanka and the southern tip of peninsular India. As operator, Cairn Lanka holds 100% participating interest in the block.

Cairn’s discovery comes after three decades of hiatus in the oil exploration of this small island country. Sri Lanka (previously called Ceylon) has a land area of 64,630 km2 with a coastline of 1,340 km; the country is mainly made up of Precambrian granites and metamorphic rocks, and only 15% of the island, notably its northern corner close to India, is covered by sediments. This area, extending across the Palk Strait, is geologically part of the larger Cauvery Basin, which contains Cretaceous-Quaternary sedimentary rocks. Indeed, only these Cauvery Basin sediments had drawn the attention of petroleum explorers in the past, with wells that included Pesalai 1, 2 and 3 undertaken by Soviet oilmen in 1974, Palk Bay-1 and Delft-1 drilled by Marathon in 1976, and Pedro-1 and Pearl-1 drilled by Cities Services in 1981. None of these wells proved successful, although Pesalai-1 drilled on the island of Manar to a depth of 2,594m encountered some gas in Lower Cretaceous sandstone, and Pearl-1 drilled in the northern part of Sri Lanka’s Gulf of Mannar to a total depth of 3,050m bottomed in a volcanic sill after penetrating an 850m-thick Upper Cretaceous sandstone.


Source: R. Sorkhabi (2012)

Two Discoveries
In 2002 and 2005, Norwegian contractor TGS NOPEC acquired 2D seismic data in Sri Lanka’s Mannar Basin, to the west of the island. Based on their encouraging report, in 2007 the government of Sri Lanka divided the basin into nine exploration blocks and offered three of them for bids from international oil companies. On 7 July 2008, Sri Lanka’s Ministry of Petroleum and Petroleum Resources Development Secretariat awarded to Cairn Lanka Block SL2007-01-001, with an area of 3,340 km2 in water depths from 400 to 1,900m. The period of licensing runs until October 2016. In December 2009, Cairn conducted a 3D survey in its exploration block, and went on to drill its first well in August 2011.

Cairn has reported two discoveries from its block. In October 2011, the company announced that its exploratory well CLPL-Dorado-91H/1z, drilled some 30 km from the Sri Lankan coast in a water depth of 1,354m, encountered 24m of gas-bearing sandstone. A month later, a second well, CLPL-Barracuda-1G/1, located 38 km west of the discovery well and drilled to a total depth of 4,741m in 1,509m of water, hit three similar gas-paying zones. While the pay zones are mainly natural gas, potential for some liquid hydrocarbons has also been indicated. A third well, CLPL-Dorado North 1-82K/1, was plugged and abandoned as a dry well in December 2011.

These deepwater wells were drilled by the Japanese drillship Chikyu (‘Earth’), which was originally built for use in the Integrated Ocean Drilling Program.

After completing its first phase of exploration at a cost of US$150 million, Cairn has launched its second phase, with 3D seismic acquisition in 2012 (by Petroleum Geo-Services aboard the seismic vessel Pacific Explorer) and drilling expected in 2013. The company is reported to be looking for a drillship or semi-submersible rig capable of drilling to a total depth of 5,500m in water depths between 800 and 1,700m.

Window of Opportunity
How much hydrocarbon the Mannar Basin holds is unclear. But in March 2011, Dr. Neil De Silva, then Director-General of Sri Lanka’s Petroleum Resources Development Secretariat, was reported as suggesting a billion barrels of oil equivalent in the basin, based on interpretations of the TGS seismic images.

Cairn’s gas discovery in the Mannar Basin has opened an important window of opportunity for Sri Lanka, which imports all of its petroleum (costing US$3 billion in 2009), mostly from the Middle East. Moreover, these discoveries for Cairn came at a time of significant changes for the company. In 2011, Cairn India, which was largely owned by Edinburgh’s Cairn Energy, sold its majority stake to a London-based Indian mining company, Vedanta, after a complicated series of negotiations with the Indian government. By paying $8.7 billion, Vedanta acquired 60% of Cairn India, while Cairn still retains about 22% of the company’s share as well as the company’s name.

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Hope we will be able to enjoy the same kind of benefits that we have been reaping after ending 30 years of spending on waging a war.  Shocked 

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Perhaps, the country may be granted a consolation prize in March meeting by American who tactically creep through.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
@worthiness wrote:Perhaps, the country may be granted a consolation prize in March meeting by American who tactically creep through.  

MR knows how to play the cards. Nothing to worry too much.

Backstage

Backstage
Moderator
Moderator
MR bigger worry is winning western province.

dhanurrox


Vice President - Equity Analytics
Vice President - Equity Analytics
@Backstage wrote:MR bigger worry is winning western province.
No problem at all unless there's a joint opposition which isn't goin to happen before election.

Backstage

Backstage
Moderator
Moderator
Hmmm...

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum