Sri Lanka is blessed by nature in many ways which makes her, in all her glory, the island paradise and the Pearl of the Indian Ocean. Another untouched gem, among others, is the oil and natural gas off her shores.

But the question is, when. When will Sri Lanka be able to utilise the two?

The Petroleum Resources Development Secretariat has an answer. And the answer is that Sri Lanka could have the privilege in four years, by 2021.

According to the PRD Secretariat, plans have been formulated to move forward with a strategic oil and gas exploration and development plan.

One of the key components of the plans is to commercialise natural gas discoveries in Block M2 of the Mannar Basin.

The government has now opened the 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, said the Petroleum Resources Development Secretariat.

The block contains two natural gas and condensate discoveries

• Dorado
• Barracuda

They were discovered in exploration activities carried out six years ago in 2011.

The volumetric analysis of these two discoveries has indicated a combined potential reservoir capacity in excess of 2 Trillion Cubic feet of natural gas and 10 million BBL (barrels) of condensate.

According to the PRD Secretariat, 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.

The Petroleum Resources Development Secretariat’s plan also involves the objectives such as,

1. Continuation of the Joint Study with TOTAL of France off the east coast – Blocks JS5 & JS6.
2. Call Expression of Interest to explore few identified blocks in the Cauvery Basin on production sharing contractual terms.
3. Formulation of a natural gas policy aimed at all sectors with export potential and new business avenues.

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