Our Bureau

New Delhi, July 7

Cairn India Ltd (CIL) has signed the petroleum resources agreement with Sri Lanka for exploration licence to explore oil and natural gas in the Mannar Basin.

In a statement issued here on Monday, the company said that the pact was signed in Colombo on Monday.

Block SL 2007-01-001, which is offshore North West Sri Lanka and covers approximately 3,000 sq. km in water depths of 200-1,800 metres, was awarded to Cairn India in the recent Sri Lanka bid round.

Cairn Lanka (Pvt) Ltd, a wholly owned subsidiary of Cairn India, has been formed which would hold a 100 per cent participating interest in the block. The work programme includes proposals to acquire seismic surveys and drill three wells in the initial three years of the eight-year exploration period.

Mr Indrajit Banerjee, Chief Financial Officer and Executive Director of Cairn India, said, “The Mannar basin has not been explored in Sri Lankan waters and as such represents a frontier petroleum province. The company has extensive experience in the region and will aim to work with all stakeholders as it embarks on its exploration programme.”

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