• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 6 hours Oil prices going Up? NO!
  • 2 days Could Venezuela become a net oil importer?
  • 8 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 7 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 days Gazprom Exports to EU Hit Record
  • 12 hours Oil prices going down
  • 15 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Oil Buyers Club
  • 2 days Why is permian oil "locked in" when refineries abound?
  • 14 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 6 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 12 hours Saudi Arabia turns to solar
  • 2 days EVs Could Help Coal Demand
  • 3 hours Are Electric Vehicles Really Better For The Environment?
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 14 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
Tesla Closing Down Solar Capacity

Tesla Closing Down Solar Capacity

Tesla is closing down solar…

Iranian Influence In Iraq Grows

Iranian Influence In Iraq Grows

Iranian influence in Iraq has…

French Total Lands Exploration Deal With Sri Lanka

French Supermajor Total S.A. (TOTF.PA) signed a deal Thursday with the government of Sri Lanka to explore potential offshore ultra-deep water blocks, according to the Sri Lanka’s Oil Ministry.

The agreement, which has been in the works since 2014, would allow Total to explore marginal areas on Sri Lanka’s East Coast.

The call for proposals came after India’s Cairn backed out of the deal in 2015 after the deal lost appeal amid falling oil prices. Cairn discovered two gas wells in 2011.

As part of the agreement, Total would conduct technical surveys and analyze data to assess the viability of oil and gas at commercial volumes. This data, worth several millions, would be owned by Sri Lanka, and would allow Sri Lanka to more accurately assess the potential for production in the region.

Related: Saudi Arabia’s Credit Rating Cut Two Levels

Under the joint agreement, Sri Lanka will also get ground rental of US $1 per square kilometer for the entire acreage, valued at roughly LKR $7 million per year.

Total could begin studies as early as April or May.

If Total finds oil or gas reserves in commercial quantities, it will have the right to negotiate a production sharing contract with Sri Lanka. Should these negotiations fail, the government may offer the opportunity to other bidders. Total would have the right to match the highest bidder within a specified timeframe. Residual rights will lapse after 51 months.

Related: Storage Problems Could Cause A Rout In Oil Prices

China, India, Russia, and Vietnam were some of the other countries that had expressed an interest in bidding on Sri Lankan oil and gas explorations.

In a statement made by Petroleum Resources Development Secretariat, Director General Saliya Wickramasuriya noted, “The opportunity we are offering is not just in exploration but in the linkages that follow from the emergence of an entire natural gas industry in Sri Lanka, which decouples risk with the rest of the world."

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News