The Petroleum Exploration Development Plan under the directive of Minister of Petroleum Resources Development Arjuna Ranatunga and the Petroleum Resources Development Secretariat (PRDS) plans to sell out the M2 block in Mannar in year 2021 for exploration of natural gas, for commercial operations.
This is subsequent to a continuation with Joint Study with TOTAL of France off the east coast – Blocks JS5 & JS6.
The block contains two natural gas and condensate discoveries (Dorado and Barracuda) both of which were discovered by exploration activities in 2011. The volumetric analysis of these two discoveries has indicated a combined potential reservoir capacity in excess of 2 TCF (Trillion Cubic feet) of natural gas and 10 million BBL (barrels) of condensate.
In addition in discoveries, the Mannar basin has sufficiently thick and mature sedimentary deposits that may yield high quality oil and natural gas which would be adequate for the next sixty years.
Initial studies of well data and regional studies indicate that the source rocks have the potential to generate 5 billion barrels of oil and 9 Trillion Cubic feet of natural gas. PRDS has already carefully mapped this risked potential that is yet to be explored and verified.
During 2008 – 2015 a sum of US$ 26 million has been spent on petroleum exploration activities for local capacity building and procurement of local goods & services by the Operator of block M2 in Mannar (ex-Cairn SL 2007-01-001). Nearly 17 local suppliers transacted US$ 18 million services during this period demonstrating a slow emergence of a new industry. Four local universities are assisted and guided to establish upstream petroleum related course modules. The M2 block exploration program itself is a US$ 240 million worth of a petroleum data asset, conclusive of two gas discoveries.
The government hopes to open Block M2 as part of a limited tender offer, to find a partner to appraise and develop the discovery of natural gas, as well as to explore for additional prospects. (IH)
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