Sri Lanka plans to move forward with a strategic oil and gas exploration and development plan.
The Petroleum Resources Development Secretariat listed several elements of the plan, including continuation of a joint study with France’s Total SA of Blocks JS5 and JS6 off the east coast (OGJ Online, May 23, 2017). It also seeks to commercialize natural gas discoveries made on Block M2 of the Mannar basin offshore western Sri Lanka (OGJ Online, Feb. 7, 2017).
A third element is acquisition, marketing, and licensing of 2D and 3D seismic and gravity magnetic data in several offshore locations in three sedimentary basins: Mannar, Cauvery, and Lanka.
PRDS also seeks exploration in the Cauvery basin on production sharing contractual terms, and wants to formulate a natural gas policy that would include export potential.
It foresees “massive long-term fiscal benefits” from the state’s share of production-sharing contracts, with estimates of 40-50% of total project profit. That amount would be derived from royalty, tax payments, profit share allocations, national equity participation, bonus payments, levies, and other fees.
Sri Lanka’s effort will be directed by Arjuna Ranatunga, the new minister of Petroleum Resources Development.
