Drill Deal

Nov 16, 2010 (LBO) - Cairn Lanka, which bought Sri Lanka's first offshore oil exploration block has hired a Japanese ship to start drilling wells from July 2011, the Japan Drilling Company had said. The firm will use the ship 'Chikyu', owned by Japan Agency for Marine-Earth Science and Technology ("JAMSTEC") to drill three wells and two optional wells beginning early July 2011.
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Cairn Lanka is a unit of Cairn India. The firm has a 3,400 square kilometer offshore oil block which has depths of 200 to 1,000 metres off the northwestern coastal town of Mannar.
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In August Cairn Lanka advertised the drilling contract seeking a drill ship or semi-submersible rig capable of operating in water depths of between 800 metres to 1,700 metres with the expected maximum well depth being 5,500 metres.
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Cairn bought Sri Lanka's first oil exploration block and is expected to spend up to 100 million dollars in project.