News
Mannar basin now on major oil radar
Conditions have changed since Cairn India drilled exploratory wells
Conditions for taking forward Sri Lanka’s efforts at exploiting indications of the presence of petroleum and natural gas in the Mannar basin have improved significantly in the last two years according to well informed sources in the international oil industry.
These sources said that when Cairn India drilled three completed exploratory wells between 2011 and 2013, two of the wells, Barracuda and Dorado was believed to contain gas estimated to be 1.8TCF and 300 BCF respectively.
“While they were not commercially viable when oil and gas prices collapsed in 2014, there is a strong possibility they will be at today’s prices. There are technologies that have reduced capital expenditure such as gas-to-wire power generation that help make the economic case for production of these gas finds,” these sources said.
“Cairn India has invested nearly $200 million in Sri Lanka, but it would require an investment of over $1 billion to build production infrastructure. Therefore, it is vital to urgently attract as many investors as possible for exploration and production to maximize benefits to Sri Lanka – especially in light of the global energy crisis and the concomitant energy price increases which has enhanced investor appetite.”
Other sources placed the Cairn investment at $ 250 m. saying it will now cost around $500 m to put in place a subsea completion to produce the smaller prospect. While one must drill to ascertain the actual existence and quantity of resources, seismic studies estimate 9 TCF of gas and several billion barrels of oil in the Mannar Basin, industry sources said.
These volumes could fulfill several decades of the country’s energy needs while potentially saving $6-7 billion p.a. in expenditure on energy. It also opens opportunities for Sri Lanka to earn revenue through Production Sharing Agreements with investors who take 100% of the risk. Mr. Saliya Wickramasuriya, Chairman of the Petroleum Development Authority of Sri Lanka confirmed that the picture had improved since Cairn drilled its first wells and possibilities of the Mannar basin are now on the radar screens of international oil majors.
“There have been external market changes (including price rises) and technology too had become cheaper. Additionally there have been internal improvements to the operating environment and legal framework. We’ve made it more investor friendly,” he said.
Other sources said what is needed now is to prudently fast track the long delayed Mannar Basin M2 block (exploration and production) tender and the commencement of exploration work by the selected bidder for the M1 and C1 July 2019 tender.There is also a need for conducting a marketing campaign to attract further investment while oil and gas prices are at historically high levels, they said.
Latest News
Navy seize an Indian fishing boat poaching in Mannar seas
During an operation conducted in the dark hours of 22 Feb 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended twelve (12) Indian fishermen while they were poaching in Sri Lankan waters, in the sea area south of Mannar.
The seized boat and the Indian fishermen were handed over to the Fisheries Inspector of Dikovita for onward legal proceedings.
News
Families of those sentenced to death for killing MP Atukorale seek AKD’s intervention
FSL assures legal backing for them
Families of those sentenced to death by the Three-member Gampaha High Trial-at-Bar, over the killing of SLPP MP Amarakeerthi Atukorale, and his police bodyguard, met a senior official of the Presidential Secretariat, yesterday (23), to seek backing for their move to appeal against the verdict.
Having made representations, they addressed the media, outside the Presidential Secretariat, where they declared their intention to move the higher court against the decision.
The SLPP MP and his security officer were killed by an Aragalaya mob on 09 May, 2022, at Nittambuwa. The same day Aragalaya mobs unleashed violence against the then government MPs across the country, torching dozens of their properties.
The Frontline Socialist Party (FSP) yesterday said that they would help the families of those sentenced to death to move court against the Gampaha High Court Trial-at-Bar decision. Responding to The Island queries, FSP spokesman Pubudu Jayagoda said that their representatives had already met the families and necessary work was being done to move the Supreme Court. Twenty three persons were acquitted and four handed six-month prison terms, suspended for five years
Jayagoda said that one of the HC judges differed in the ruling. Asked whether they received backing from any other political party and groups that had been involved in the 2022 protest campaign to defend those who had been found guilty, Jayagoda said such support was lacking.
The JVP/NPP played a significant role in the violent protest campaign that forced President Gotabaya Rajapaksa to step down. Pointing out that the Attorney General, too, was appealing against the court decision on the basis that the number of persons sentenced to death should be much higher, Jayagoda said that the Nittambuwa incident couldn’t be examined in isolation without taking into consideration the SLPP goon attack on Galle Face protesters on 09 May, 2022. (SF)
News
OPV leaves Baltimore, expected in Colombo in May
Offshore Patrol Vessel P 628 of the Sri Lanka Navy departed Baltimore, USA, for Colombo, on 20 February.
The ex-United States Coast Guard Cutter, USCGC Decisive was officially handed over to the SLN on 02 December, 2025, as the latest addition to the SLN fleet, under the Pennant Number P 628.
Measuring 64 metres in length, this ‘B-Type Reliance Class 210-foot Cutter’ is equipped with advanced technological systems and facilities, capable of conducting extensive surveillance operations spanning up to 6,000 nautical miles per patrol.
The vessel’s voyage to Colombo is historic, possibly marking the longest-ever passage undertaken by a Sri Lanka Navy ship. Covering approximately 14,775 nautical miles, the journey will see the P 628 navigate from Baltimore through the Atlantic Ocean, the Panama Canal (a first for a Sri Lankan naval vessel), the Pacific Ocean, and into the Indian Ocean, via the Straits of Malacca. The ship is expected to arrive in Sri Lanka during the first week of May, 2026.
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