Oil drilling bids soon

Spectrum concludes 3D
seismic survey of coast

UK-based oil and gas services provider Spectrum, which had been mandated by the government to survey potential gas reserves off the coast, is due to complete its 3D seismic survey by Friday (September 28). Initial results will be available next month.

The final version of the survey will be ready by early next year, right before the expected launch of the first licensing round. The Ministry of Energy had earlier said licensing will start by early 2013. It said interested companies will be called on to bid for drilling rights once the ‘Petroleum Regulatory Authority’ is appointed by Cabinet. A source at the ministry said completing the appointment of the authority’s six members is a few weeks away.

Spectrum said the southwest area of the coast, covering some 3,000 square kilometers, has over 25 trillion cubic feet of gas. Spectrum has already surveyed 10,500 square kilometers of the coastal area, representing half of the total Exclusive Economic Zone.

Twenty-six companies have so far bought surveys of the offshore area. The Minister of Energy and Water, Gebran Bassil, said consortium bidders are favored over single firms.
UK oil and gas explorer Cairn Energy had earlier announced that it has formed a consortium to bid for drilling rights. Cairn, which has already bid for offshore drilling in Cyprus, holds a 40 percent share in a bidding consortium. Its partners include US-based Marathon Oil company (40 percent), Lebanon-based CCEnergy, an associated company to contractors CCC (10 percent), and Dutch firm, Oranje-Nassau Energy (10 percent).