Lankan oil exploring license given to Indian comapny

Sri Lanka has granted a license to explore oil to India’s Cairn Energy PLC in an offshore block off the country’s North West Mannar basin. The Indian Oil Company is promoted by Cairn Energy PLC, a crude oil and natural gas exploration and production firm listed in the market of London stock exchange. Cairn Energy PLC currently holds 69% interest in Cairn India.
The company said Sri Lanka granted them Block SL 2007-01-001 is offshore North West Sri Lanka and covers approximately 3,400 Km2 in water depths of 200 metres to 1800 metres.
As soon as the license was granted shares of the company gained Rs. 1.85 or 0.71%to settle at 263.95 Thompson Financial Agency reported.
The energy company announced that the petroleum resources agreement between the company and the government will be signed very soon.
Cairn India currently operates 11 offshore platforms, approximately 200 KM of sub-sea pipelines, and two processing plants.
Company sources revealed Cairn India is at present focused on exploration and production in India, where it has a working interest in 14 blocks, two of which are producing gas and oil. The company made major oil discovery (Mangala) in Rajasthan at the beginning of 2004. More than 20 discoveries have been made in Rajasthan block RJ-ON-90/1.

Source: asiantribune