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.

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.

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. Cairn bought Sri Lanka’s first oil exploration block and is expected to spend up to 100 million dollars in project.