India based UK company clinches deal
The Government yesterday awarded the first oil exploration tender in the Mannar Basin to a UK based energy company operating in India Cairan Energy India private Limited.
“The tender was awarded to Cairan and the government is expected to sign the contract agreement on July 7,” a Petroleum and Petroleum Resources Development Ministry source told Daily FT.
Early this year the government called for international tenders to give away the three offshore blocks for oil exploration.
Accordingly Cairan made its bid on two offshore blocks in the Mannar Basin North West of Colombo. In early February during their bidding process the company told Daily FT that Cairan is looking forward to invest US$200 million on Sri Lanka’s oil exploration and will arrive in Sri Lanka in a big way if they become successful in the bidding process. Early this year the Company indicated that if they become successful in the bidding process the company will invest at least US$50 million each on the two blocks. The company also indicated that they expect to engage in drilling for at least two to three years in order to find any if there is any petroleum deposits and even if any discovery is made it may take at least seven years to develop a proper oil production industry in Sri Lanka.
If the company becomes successful in its drilling process the government of Sri Lanka is expected receive 10% of the shares of each block.
Cairn Energy PLC is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange. It was first listed in 1988. It is one of the largest independent exploration and production companies in Europe and is listed in the FTSE top 100 stocks on the London Stock Exchange. The current market capitalisation of Cairn Energy PLC is $ 6.6 billion and the current market capitalisation of Cairn India is $ 9.6 billion and is listed on the Nifty top fifty stocks on the Bombay Stock Exchange. The company currently operates more than 80,000 barrels of oil equivalent per day.
Cairn India limited (“Cairn India”) is now an autonomous business listed on the Bombay Stock Exchange and the National Stock Exchange of India and has interests in a total of 15 Indian acreage blocks. Cairn retains a 69% interest in Cairn India. Cairn has further assets in Bangladesh, Nepal, Northern India, Greenland, Tunisia, Peru, UK (West of Shetlands), Albania, Australia, and pending licence awards in Spain and Sicily. The Group holds material exploration and production positions in west India, east India and Bangladesh along with new exploration rights in India and Nepal.
Cairn has focused its activities on the geographic region of South Asia for more than a decade, which has already resulted in a significant number of oil and gas discoveries. In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. Cairn has now made more than 20 discoveries in Rajasthan block RJ-ON-90/1. In all the company has made more than 40 hydrocarbon discoveries in South Asia. Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.
DM
The Government yesterday awarded the first oil exploration tender in the Mannar Basin to a UK based energy company operating in India Cairan Energy India private Limited.
“The tender was awarded to Cairan and the government is expected to sign the contract agreement on July 7,” a Petroleum and Petroleum Resources Development Ministry source told Daily FT.
Early this year the government called for international tenders to give away the three offshore blocks for oil exploration.
Accordingly Cairan made its bid on two offshore blocks in the Mannar Basin North West of Colombo. In early February during their bidding process the company told Daily FT that Cairan is looking forward to invest US$200 million on Sri Lanka’s oil exploration and will arrive in Sri Lanka in a big way if they become successful in the bidding process. Early this year the Company indicated that if they become successful in the bidding process the company will invest at least US$50 million each on the two blocks. The company also indicated that they expect to engage in drilling for at least two to three years in order to find any if there is any petroleum deposits and even if any discovery is made it may take at least seven years to develop a proper oil production industry in Sri Lanka.
If the company becomes successful in its drilling process the government of Sri Lanka is expected receive 10% of the shares of each block.
Cairn Energy PLC is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange. It was first listed in 1988. It is one of the largest independent exploration and production companies in Europe and is listed in the FTSE top 100 stocks on the London Stock Exchange. The current market capitalisation of Cairn Energy PLC is $ 6.6 billion and the current market capitalisation of Cairn India is $ 9.6 billion and is listed on the Nifty top fifty stocks on the Bombay Stock Exchange. The company currently operates more than 80,000 barrels of oil equivalent per day.
Cairn India limited (“Cairn India”) is now an autonomous business listed on the Bombay Stock Exchange and the National Stock Exchange of India and has interests in a total of 15 Indian acreage blocks. Cairn retains a 69% interest in Cairn India. Cairn has further assets in Bangladesh, Nepal, Northern India, Greenland, Tunisia, Peru, UK (West of Shetlands), Albania, Australia, and pending licence awards in Spain and Sicily. The Group holds material exploration and production positions in west India, east India and Bangladesh along with new exploration rights in India and Nepal.
Cairn has focused its activities on the geographic region of South Asia for more than a decade, which has already resulted in a significant number of oil and gas discoveries. In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. Cairn has now made more than 20 discoveries in Rajasthan block RJ-ON-90/1. In all the company has made more than 40 hydrocarbon discoveries in South Asia. Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.
DM
