Although the state run Sri Lankan newspaper 'Daily News' today states that Cairn India is to produce is to "produce gas" in 2016, the 4th quarter report of the company, which was released just a few days ago, suggests otherwise.
Cairn India in their 4th quarter report have said that they are urging the Sri Lankan Policy makers to take a holistic view to maximise the benefits from the maiden natural gas discovery in the Mannar basin. The Company says that they are continuing discussions with the Sri Lankan Government regarding the commercial terms necessary to monetise the discovered gas resources on the block.
Cairn India concluded their appraisals and commercial studies to determine the next steps for the gas discoveries made on the block in 2013.
The Annual report also states that in November 2013, the Company had participated in Sri Lanka’s offshore bidding round for the M-5 block, located south of their current block in the Mannar Basin.
Although the company has found two natural gas deposits from the Mannar basin, their commercial viability is yet to be ascertained. No press communique in the public domain says that the company is planning to commence gas production in the Mannar basin in 2016.
'Asian Mirror' also tried to contact Saliya Wickramasuriya, Director General of the Petroleum Resources Development Secretariat, in this regard. Our attempts did not bear fruit as his phone was switched off this morning.
