Managing oil and gas investment

COMMONWEALTH HEADS OF GOVERNMENT MEETING
Managing oil and gas investment
By Saliya Wickramasuriya
Director General, Petroleum Resources Developemnt Secretariat (PRDS), Sri Lanka
E
Saliya
Wickramasuriya
joined the upstream oil
and gas industry as a
wireline field engineer
in 1984. After 12 years
working on rigs, he held
training, operations
management, HRD and
marketing positions in
different parts of the
world. He was appointed
Chairman and Director
General of the Sri Lanka
Board of Investment in
2004, ending a 20 year
international career
with Schlumberger.
In April 2006, he was
appointed Chairman
of the Sri Lanka Ports
Authority, a position he
held until Q4 of 2008.
He then returned to Sri
Lanka in October 2011
to be appointed Director
General of the Petroleum
Resources Development
Secretariat.
stablished under the Petroleum Resources
Act No.26 of 2003, the Petroleum
Resources Development Secretariat
(PRDS) is the administrator of petroleum
exploration and production operations in Sri Lanka.
The PRDS works under the policy directive of the
Petroleum Resources Development Committee
(PRDC), a committee chaired by the Secretary to
the President and comprising Secretaries of several
Ministries and key institutional heads.
The PRDS has been tasked by His Excellency the
President, in his capacity as Minister of Petroleum
Resources Development, with attracting and managing
investment in the upstream oil and gas sector efficiently,
transparently and equitably, and with due consideration
to the country’s environmental and cultural heritage.
Legislation is therefore being formulated that will
make the PRDS an independent and autonomous
statutory body, empowered to regulate the country’s
growing upstream industry.
The new legislation will also improve governance
of the sector by clearly separating the roles of policy,
regulation and operations. National policy with respect
to hydrocarbon resource development will remain the
purview of the PRDC, and at some point in the future
a national oil company will be formed to take its place
among the international operators working in the sector.
We have based our organisational philosophy on
four concepts in order to fulfill these expectations
– Explore, Define, Build, and Strengthen – replacing
the traditional Vision and Mission statements with a
broader scope of function.
Explore relates to encouraging investment in petroleum
exploration activities in order to test the full potential of
Sri Lanka’s sedimentary basins. It also includes the notion
of a consultative process we have launched with other
government institutions, the business community, civil
society, and the public to create a culture of awareness
of issues and priorities we may need to take into account
while designing fiscal and legal policy.
Define is about appraisal and delineation of
prospects, modeling of basins and reservoirs, and
creating optimum development concepts based
on sound technical knowledge. It also has to do
with implementing an enabling financial, legal and
operational framework, balancing risk and reward
fairly between the state and international operators and
FIRST
making it easy to do business in Sri Lanka.
Build relates mainly to the construction of
infrastructure required for the production, distribution
and export of oil and gas, both physical and institutional.
It also includes the making of policy on the many and
varied aspects of being a petroleum economy that
impact energy mix and fiscal discipline. An important
part of this focus is the relationships we maintain
with our E&P business partners, whose diversity we
consider a strength and whose alignment with national
development objectives we encourage and value.
Strengthen records serious commitment to the
long-term impact of petroleum revenue, uplifting
livelihoods and the quality of life across all segments
of society. It also includes envisioning and formulating
strategies to insulate the economy from the inevitable
decline of production.
In its professional conduct the PRDS is committed
to a high standard of work ethic, guided by principles
set out in the organisation’s newly developed Code of
Conduct. We value integrity, honesty, responsibility,
fairness and compliance with the law, and, as regulator
of the upstream petroleum industry, we will maintain a
level playing field for all stakeholders while at the same
time encouraging knowledge transfer to Sri Lankans
and building capacity in local institutions.
Commonly known as Local Content development,
this process is vital for the long-term sustainability
of the industry. At the heart of our thinking is the
designing of sector-specific upstream activity that
aligns with national development goals and, and
thereby drives policy. This policy may evolve over
time, but will always centre on managing the industry
with minimum external support in the shortest possible
time. If, in 15-20 years, Sri Lankans can take all major
decisions pertaining to upstream operations, then the
PRDS would have succeeded in meeting this objective.
Details of our approach are set out in our Upstream
Petroleum LC Guidelines, which may be downloaded
from our website www.prds-srilanka.com.
We are also committed to protecting Sri Lanka’s
rich cultural and environmental heritage, and will
strictly enforce the observation of laws and regulations
relevant to preserving them for future generations.
A strong Health, Safety and Environment culture
has come to the forefront of petroleum operations
worldwide, and Sri Lanka is no exception.
43
COMMONWEALTH HEADS OF GOVERNMENT MEETING
and in this process we seek to work as equal partners
with operators and the service industry. We wish to
define and share common objectives throughout,
and in particular encourage their participation in Sri
Lanka’s environmental protection programmes, both
F
marine and terrestrial.
Internationally accepted standards of practice will
be mandatory in our industry, and PRDS HSE policy
will be aimed at the best protection of person, property
and nature possible. Applicable processes and practices
will be regularly challenged, however, to ensure that
effectiveness and efficiency are not diluted over time,
79°0'0"E
200000
80°0'0"E
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81°0'0"E
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82°0'0"E
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OFFSHORE EXPLORATION BLOCK MAP - Revision 02
35
700000
00
3500
35
00
3500
This map represents offshore exploration blocks in the Mannar Basin, offshore exploration blocks in the Cauvery Basin
& offshore blocks for Joint Studies
.
1200000
11°0'0"N
15
0k
m
INDIA
3500
da
3500
un
4000
Bo
ry
fro
m
10
Atirampattiam
0
10
11°0'0"N
1200000
78°0'0"E
3000
00
el
ry
e
da
in
un
35
350
as
Bo
eb
m
th
0k
0
fro
m
th
35
eb
00
lk
Pa
A
JS - 6
Pedro 1
1100000
A
C3
24011.5km2
10°0'0"N
3500
St
100
ra
it
1100000
10°0'0"N
3500
100
e
3500
100
in
4700.2km2
el
C4
as
2424km2
Jaffna
Delft 1
3915.7km2
100
C5
C2
2147km2
Rameswaram
Palk Bay 1
40
00
A
1000000
9°0'0"N
Mannar
Pearl 1
4000
A
2539.1km2
AAPesalai 1
PesalaiA
3 Pesalai 2
00
Tuticorin
40
C1
35
M1
2779.2km2
40
00
9°0'0"N
00
Kilakarai
1000000
We will
maintain a
level playing
field for all
stakeholders
while at the
same time
encouraging
knowledge
transfer to Sri
Lankans
JS - 5
100
Trincomalee
Barracuda
AA
26216.5km2
Dorado north
A Wallago
Anuradhapura
25
00
Dorado
20
00
Gulf of Mannar
M3
3069.2km2
10
8°0'0"N
00
0
0
150
40
400
1000
00
15
00
8°0'0"N
900000
Puttalam
1000
900000
40
00
A
40
500
1500
M4
4301.1km2
SRI LANKA
00
Batticaloa
4000
2000
40
0
4000
800000
4350km2
Negombo
100
800000
400
00
25
Kandy
M5
00
2500
25
2500
1500
00
1500
10
1000
00
2000
M8
4000
Badulla
4918.6km2
JS - 4
19754.6km2
0
00
300
0
400
40
0
250
4830km2
2500
500
4000
100
3000
100
700000
4000
0
200
4000
400
0
4000
4000
Matara
3000
2000
3500
400
0
6°0'0"N
2500
00
2500
00
00
0
15
3500
Galle
35
250
4000
7630km2
1500
M7
Hambantota
30
4000
700000
00
4000
8127.2km2
6°0'0"N
40
4000
M9
4000
4000
4000
25
00
4000
2500
2500
0
Colombo
M6
7°0'0"N
400
7°0'0"N
JS - 3
2500
20921.1km2
3500
1000
200
2500
0
4000
00
3000
35
600000
17197.5km2
00
4000
JS - 2
40
4000
600000
00
4000
JS - 1
3500
35
21571.5km2
5°0'0"N
500000
Legend
Coordinate System: WGS 1984 UTM Zone 44N
Projection: Transverse Mercator
Datum: WGS 1984
False Easting: 500,000.0000
False Northing: 0.0000
Central Meridian: 81.0000
Scale Factor: 0.9996
Latitude Of Origin: 0.0000
Units: Meter
Date: 3/12/2013
Data sources: Survey Department Sri Lanka
Petroleum Resources Development Secretariat/Sri Lanka
40
A Well Locations
3500
30
00
Territorial sea baseline
Maritime boundary
400
0
3000
Bathymetry
4°0'0"N
3000
Mannar Basin - Exploration blocks
00
00
35
00
Blocks awarded
35
00
0
00
25
50
100
150
200
Kilometers
1:1,200,000
350
200000
78°0'0"E
35
00
0
3000
44
400000
400000
Blocks for joint studies
3500
30
Sri Lanka’s 2013
licensing round blocks
4°0'0"N
Cauvery Basin - Exploration blocks
30
35
00
500000
4000
5°0'0"N
79°0'0"E
300000
400000
80°0'0"E
FIRST
500000
81°0'0"E
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82°0'0"E
700000
83°0'0"E