Attracts investor interest for blocks in Mannar and Cauvery basins

Sri Lanka has attracted investor interest for the exploration and development work in M2 block of Mannar Basin and several blocks in the Cauvery basin. 

The Petroleum Resources Development Secretariat (PRDS) earlier this year called for international tenders to develop the M2 block of Mannar Basin which includes Dorado and Barracuda discoveries.

“There are already 11 international and local companies that have collected bid documents, and we expect them to place bids on 7th of May,” a senior official of PRDS told Mirror Business. 

PRDS estimated that an investment of US$500 million will be required for the exploration and development activities in Barracuda while around US$2 billion will be required for entire M2 block.

Meanwhile, the official noted that negotiations with an investor for the exploration and development activities of few blocks in Cauvery Basin have been progressing. 
As the demand for natural gas keeps increasing globally, the PRDS officials said they will see more investor interest in recent month. 
“We are not worried even if we don’t get bids for M2, because we can go for international bids once again next year,” a PRDS official stressed.