The drilling for oil in the sea off the North Western coast in Mannar would be completed in three stages. The first step will take three years while the other two stages will take two and three years respectively, Petroleum Resources Minister Susil Premajayantha said. Cairn Sri Lanka (Pvt) Ltd, which is a subsidiary of Cairn India (Pvt. Ltd), is to commence drilling of the first three oil wells in the Mannar Basin.
The Government signed a Petroleum Resources Agreement in 2008 with Cairn India to explore and produce hydro - carbon and natural gas in the Mannar Basin. According to the Agreement, Cairn India will start exploration activities in one of the eight blocks in the Mannar Basin which covers 3,400 sq. kms. at depths between 200 to 1,800 metres. Oil exploration in the sea off the North Western Coast is a eight year project. The total cost for the project is estimated at US $ 172 million.
The drilling of the block number SL 2007-01-001 in Mannar basin will be started in early next year. The Minister said according to the directives of President Mahinda Rajapaksa, Sri Lanka is to be the Energy Hub of South Asia. Oil exploration would be a revolutionary move made by the Government in its bid to develop the country's economy, he said.
@ Daily news : By Suraj A. Bandara
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