Petroleum resources in Sri Lanka - BSc student seminar presentations of Department of Forestry and Environmental Science, University of Sri Jayewardenepura. www.sjp.ac.lk

1. PETROLEUM RESOURCES IN
SRI LANKA
R.M.T.D. MADUSANKA
DEPT OF FORESTRY AND ENVIRONMENT SCIENCE
BSC STUDENT SEMINAR
University of Sri Jayewardenepura, 2015

2. Petroleum
Resources in
Sri Lanka.
R.M.T.D. MADUSANKA,
AS2012135,

3. Content.
What is petroleum?
Formation of the Petroleum.
Global oil and gas fields.
Petroleum resources in Sri
Lanka.
Geological background.
Past hydrocarbon explorations.
The regulatory & legal
environment.
Organizational structure.
Operational structure.
Recent petroleum
explorations.
Current status.
Environment impacts.
Recommendations.
Resource persons and
references.

4. What is petroleum?
According to the article I of the petroleum
resources agreement between GOSL & Cairns,
“Crude Oil or Condensate or
Natural Gas existing in their
natural condition but excluding
helium occurring in association
with Petroleum or shale”

7. Global oil and gas fields.

8. Do we have petroleum in
Sri Lanka?
Yes!

9. Only
offshore
petroleum.
In 3 basins,
1.Mannar.
2.Cauvery.
3.Southern.

10. Geological
background.
Sri Lanka is mainly made up
of Precambrian granites and
metamorphic rocks.
Only 15% of the island,
notably its northern corner
close to India, is covered by
sedimentary rocks.
•Shallow sedimentary cover
•Thick sedimentary cover
Petroleum can be find in
those sedimentary rocks.

11. Past Hydrocarbon explorations.
Sri Lanka’s efforts in oil exploration dates back to 1960s.
First reflective seismic in the north western region in
1967.
1974-1981, seven exploratory wells were drilled with
assistance from Russian and US companies.
Some evidence of presence of hydrocarbons was found.
No serious efforts were made to extract oil, as it was
said to be commercially unviable.

12. The Regulatory and Legal
Environment.
Petroleum Resources Act 2003.
Petroleum Resources Development Committee(PRDC)
- comprising of Secretaries of relevant ministries.
- Granting of licenses.
- Approval of development plans.
Petroleum Resources Development Secretariat (PRDS)
- Director General + capacity from other govt.
institutions.
- Implementing activities for the PRDC

13. Operational structure of
upstream petroleum industry.

14. Operational structure of upstream
petroleum industry.. Cont…..

15. Brief story of recent petroleum
explorations.
In 2002 and 2005, Norwegian contractor TGS NOPEC
acquired 2D seismic data in Sri Lanka.

16. Based on the
report, divided the
basins into 13
exploration blocks.
First licensing
round in 2007,
-3 blocks were offered.
-Only one awarded for
exploration.
block SL 2007-01-001
in the Mannar Basin to
Cairn Lanka.

17. In December 2009,
Cairn conducted a 3D
survey in its exploration
block.
3 wells were drilled.
• Barracuda.
• Dorado.
• Dorado-North

18. Two gas fields were discovered.
Potential reservoir capacity in excess of 2 TCF( Trillion
Cubic Feet) of natural gas.
oDorado
30 km from the Sri Lankan coast in a water depth of 1,354m.
300 BCF( Billion Cubic Feet) of gas and 2 million BBL of oil.
oBarracuda
38 km west of the Dorado well and drilled to a total depth of
4,741m in 1,509m of water.
Needs further appraisal and quantification with detailed reservoir
studies
One Dry well.
o Dorado North
-plugged and abandoned as a dry well in December 2011.

19. Second bidding round.
Sri Lanka opened its second bidding
round for oil exploration licenses
earlier 2014.
Offered six blocks to carry out geophysical studies
and collect associated seismic data.
Cairn India has bid for Mannar Block M5 and
Bonavista Energy Corp bid for blocks C2 and C3 in
Cauvery basin.
Studies are not started yet.

20. What is the
current status?

21. Petroleum explorations were done in
the block SL 2007-01-001 in the
Mannar Basin.
But commercialization of those
resources is the biggest problem.
Production stage is not started yet.
Exploration activities in the other
blocks are also not started yet.

22. Environmental impacts.

23. Environmental
Risk
Seismic survey
Exploration &
production

24. Seismic survey.
Use ultrasounds to investigate the petroleum
resources in the sea.
Negative effect on sea animals,
• Mammals-16 species were identified.
• Birds-migratory bird route.
• Benthic Invertebrates.
Negative effects on fisheries in north western coast.
Not a prescribed project in the NEA.
Its mandatory to be subject seismic project to EIA
process as the PRA with cairns.

25. Exploration & production.
Impacts on marine biodiversity,
oOil spills.
oWaste disposal.
oNoise & Light.

26. 14 exclusive mangrove species and 29 species of mangrove
associated species have been reported in the north western coast.
Lot of sea grass species.
3 Sea turtle species – nesting & feeding grounds.
Olive Ridley (Lepidochelys olivaceae )
Green Turtle(Chelonia mydas)
Hawksbill Turtle (Erytmochelis imbricata)
198 bird species.
Coral reefs.

27. Impact on fisheries
in north western sea
areas.
•Reduce the breeding
grounds for fishes.
•Need to regulate the
fisheries.
•Lost the freedom of
fishing.
•Can lead to a conflict.

28. Recommendations.
Indicate relinquishment of exploration blocks in the act.
Include the quantity of crude oil or gas shared by the
government and the Contract Operator in the act.
PRDS should be adequately staffed with officials who should be
exposed to off shore oil exploration.
Policy makers should familiarize themselves with the key
principles of the financial and economic aspects of petroleum
production.
Increase the confidence of international investors by ensuring
institutional credibility and transparency.
complete the proposed Environmental baseline study as soon as
possible.
Include seismic surveys in the prescribed project list in NEA.
Conduct awareness programs for the coastal communities
specially for the fishermen.

29. Resource persons.
Mrs. D.T.K. Preeni Withanage,
Director-Benefits,
Petroleum Resource
Development Secretariat.
Mr. Chathura Wijesinghe,
Environmental Officer,
Petroleum Resource
Development Secretariat.

30. References.
National energy policy & strategies of Sri Lanka.
petroleum resources act, no. 26 of 2003.
Initial environmental examination report - Three Dimensional Seismic
Survey for Oil Exploration in Block SL-2007-01-001 in Gulf of Mannar-Sri
Lanka.
Draft strategic Environmental Examination Report for Carvery Basin – Sri
Lanka.
Sri Lanka Upstream Petroleum Benefits Report July 2008-March 2014.
Official web site of petroleum resources development secretariat ,
http://www.prds-srilanka.com/
http://www.lankabusinessonline.com/news/sri-lanka-to-update-
petroleum-exploration-law/1868293023