14 October, 2024

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Is Sri Lanka Prospecting For Oil In The Mannar Basin Or Not?

By Primus Salgado

The Government called for International tenders to prospect for oil and gas in Mannar basin in 2019 . An award was made as per the tender specs, and lo and behold the usual games began. Before long the successful bidder was assailed with the usual wishy-washy delaying tactics which led to the tender being cancelled. Reminiscent of many such tenders. The successful tenderer who had spent considerable sums naturally sought legal redress obtaining an interim order against the cancellation.

Mark you, the Government of Sri Lanka nor the people have to spend a penny to prospect. If oil or gas is found the agreed terms must be met. If there is discovery ( mind you these people are pros in the business) Sri Lanka will benefit big time in the interim period before the Carbon zero system ( if ever ) comes into play, perhaps in 2030. Therefore timing is of the essence. If there is no discovery, the bidder loses but not Sri Lanka. Get it?

When the previous regime dilly-dallied without rhyme or reason it appeared games were at play. Sri Lankans buy lottery tickets knowing the odds. This is not in the least like that. The prospectors spend the money to discover. No oil, they lose. Oil….Sri Lanka wins.

The Ministry has canceled the award and the successful bidders have naturally, gone to Court and obtained an interim order. They have spent considerable amounts in bringing top experts to Sri Lanka to study ground conditions only to be stalled at the tape. The new Government would do well by the people to restore order and get going. The old system of oiling the palm ( in this instance with such odds of finding oil or not) is never going to happen.

Time for system change.

Latest comments

  • 4
    0

    Hello Primus Salgado,
    I have been trying to explain this to my Sri Lankan relations since 2011 and later when I arrived here in 2021/22. Cairn UK found Oil Reserves a long time ago – “For the first time, two natural gas discoveries were made in two wells out of the three wells drilled in Block M2 by Cairn in 2011”.
    https://www.trade.gov/country-commercial-guides/sri-lanka-oil-and-gas
    One commenter in CT suggested that there was no Commercial sense as the costs were too much for Sri Lanka.
    I was on a rig in the West of Shetland around 1977 that found substantial reserves. It took many years to develop, The Clair field – 47 miles (75km) west of Shetland – was discovered in 1977 and is estimated to contain seven billion barrels of oil and gas”. https://www.bbc.com/news/uk-scotland-north-east-orkney-shetland-46304346
    You implied what my Stepson and his Uncle said “The Politicians could not agree on who’s pocket the money was going into”
    Best regards

    • 3
      0

      Oil from Mannar basin had been the political slogan by government to hoodwink public by painting a picture that everything is rosy. There is oil in Mannar basin, but it is not economically viable. If there were large deposits, by now India would have drilled on their side of the ocean and extracted the oil. I was told by an Indian businessman that India has found oil in three sites in northern province, two within the peninsula and one just outside near east coast. When India takes over Tamil areas they will go ahead and make north and east prosperous.

  • 1
    5

    “Time for system change.”
    .
    Bit of wishful thinking there from the author, IF he is expecting it from the newly elected Prez and the his newly appointed Premier.
    .
    They have already resorted to the same old same old tactics, driven by hunger for power, greed for money, lust for perverted sexual pleasures.
    .
    Quite unashamedly the newly appointed Prime Minister too, whose reputation is quite starkly at odds of her true charachter, which soon will come to light.
    .
    15% of 200 billion USD seems to reveal the true nature of individuals otherwise have been considered by the society as well as themselves to be men and women of intellect and integrity.
    .
    TBC

    • 2
      5

      Plenty to write, but can not be bothered to, especially to a forum, patronized by equally corrupt and perverted men (mostly), and women (a few), to most of whom AKD and NPP were No, Nos, till the eleventh hour of the 19th September 2024.
      .
      Come morning 22nd the sentiments have taken a 180 degrees about turn!
      .
      One can not help but note that Basil, Yes, him, the worst of the Rajapaksas, Basil Rajapaksa, had just left the shores of the island, heading home bound, with a stop quite interestingly in Dubai!
      .
      By 22nd morning opposing candudates supporters were congratulating AKD for his victory. Amongst firsts of them were former Monister Ali Sabri. And of course the “Economist” of the opposition Harsha De Silva of Suvasariya fame – Kerala Ganja transporters to the island nation.
      .
      TBC

      • 0
        6

        Then AKD was sworn in, parliament was dissolved, old Premier stepping down, something he should have done many many moons ago, if he were an honorable person, or at least should have not stuck with the status quo, but he finally proved what he is made of – nothing.
        .
        Couple of Chief Ministers were also among those who resigned notably, northern and western provinces.
        .
        Then came the new appointment time. I thought tge appointment if tge Western Province governor was the AKDs biggest blunder alias I was proven wrong AGAIN!
        .
        The most vicious seems to be none other than the lady Premier, who appears to be hardly a lady!
        .
        TBC

        • 0
          6

          Needles to say, a Bishopian for starters, having come to the parliament from the National List she seems to have won the jackpot to be elected to the Prime-minister’s office by the common man’s leaders AKD. Irony at its best at display, on closer look one can not help but wonder of conspiracy. Her higher education has started off in Delhi. Enuff red flags already.
          .
          On top of that I hear she isn’t straight. I mean in her sexual orientation. Which is none of my concerns and shouldn’t be of anyone else’s either, except that her sexuality seems to interfere with better judgement thus good governance!
          .
          TBC

          • 1
            6

            If you could read between the lines it is not hard to imagine what is going on. Back to square one.
            .
            Basil Rajapaksa still seems to be in charge. Calling the shots remotely from the luxuries of his own home, where his children are citizens, and grand children are born – the United States of America.
            .
            Backroom deal making, and realpolitik have won over the electorate’s decision to elect a fresh leader, with authenticy, honesty, and integrity.
            .
            If anyone wants proof its in the opposition pudding. Check out the new appointments they made hurriedly to their party hierarchy, in response.
            .
            Immediately behind Basil is a much more darker, and sinister force – KP, current leader of the old trouble maker, the LTTE, calling shots, both literally and figuratively.
            .
            This explains the sudden change ofvhearts and good wishes expressed by the Tamil Speaking Citizens.
            .
            And for all the others I can only say – God Bless United States of Sri Lanka!

          • 4
            1

            Ruchira, if the sexual orientation of PM is your concern, how did we live all this time under a married president who too was condemned by some accuser media citizens for something of a similar nature. Are you suggesting that 224 who were in parliament were perfect in their sexual behavior while governing. Accounts of a former Health Minister was in the media, when he was found with his pants down in his office with another woman, when his own wife walked in there. A Minister who went to Australia tried jumping into another location through the balcony, fell down with broken bones and was hospitalized there, bills being paid by SL. Agreed that it is good to lay down rules for behavior or else we will have miris kudu thrown,

            • 4
              0

              DTG
              There should be rules to prevent Angoda-escaped rapists passing opinions on other people’s sexual behaviour.

            • 1
              3

              Another card carrying member of the same perverted class ranting about what only his god knows without having understood a single word that has been said. Demonstrating either his inability to comprehend what’s written or willful deflection of the subject. Probabbly but of both. Church seems to have no shortages in supply when it comes to the crooked, the criminal and perverted men and women. Same gies to the mosque though women aren’t allowes in them. Funneh how only the fascists seem to be able to see and care.

              • 1
                3

                The bandwagon is already queuing up. Just noticed.

              • 1
                0

                “Same gies to the mosque though women aren’t allowes in them. “
                But your own womenfolk are hiding there?

  • 2
    0

    Back to the topic of oil and gas reserves. The real question is how viable they are. and would anyone be interested in spending money to lose more money? my feeling is none of them are financially viable , and to be perfectly honest it has to be a good thing.

    Just imagine the kind of pain Sri Lanka will have to suffer given the geopolitical rivalry we already have. and to be completely honest I don’t think a novice government like this one will have any capacity to handle it despite the the sky high optimism of most of the folk here,

    • 0
      0

      Hello a14455,
      Here is a report “PETROLEUM POTENTIAL OF THE CAUVERY BASIN, SRI LANKA:
      A REVIEW by UPUL PREMARATHNE”
      If you search Google you can download the PDF file. It is well worth reading carefully. India already produces from the Cauvery Basin and will survey deeper waters for their potential.
      Out of 3 wells drilled 2 produced Gas. “These maiden hydrocarbon discoveries in Sri Lanka confirmed the occurrence of an active petroleum system in the Mannar Basin”. I also think that there is a potential reservoir in the Jaffna Limestone areas.
      There is more to the Sri Lankan Governments reluctance than “meets the eye”. This will change forever the living standards (and the politics) in the North. I saw the changes that took place in Aberdeen from the early 1960s when the first discoveries were made.
      The costs of Surveying and Wildcat Drilling were born in the main by the Petroleum Companies, not by the UK Government. Sri Lanka has had the same offers in the past.
      In the Reports Conclusion it gives an optimistic view “There is a possibility that an active petroleum system occurs in the Sri Lankan sector of the Cauvery Basin”.
      Best regards

      • 0
        0

        Thank you . I did download it but reading it is a different matter. (gave me a headache)

        it does not cover the financial viability. and I don’t subscribe to the conspiracy. Whether found in Mannar or Jaffna, it will not benefit any particular group in the north or south.

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