Colombo, January 10 (Daily Mirror) - The energy companies from countries such as Qatar and India have already shown interest in participation in the exploration and development of hydrocarbon resources (oil and natural gas) in four blocks of the Mannar basin, an official said yesterday.
An official of Sri Lanka Petroleum Development Authority told Daily Mirror that international bidding would be launched ‘very soon’ with a six-month period for prospective global energy companies and national oil companies of different countries to make their submissions.
According to exploration done in 2011, India’s Cairn found hydrocarbon deposits in two wells in the Mannar basin- Barracuda and Dorado.
The Petroleum Resources Act No. 21 of 2021 stipulates that oil exploration and development should be undertaken only through an international tender process. Offshore Sri Lanka consists of four sub-basins: Cauvery, Mannar, South Lanka, and East Lanka. Past discoveries have proven the petroleum system in the Mannar basin.
The official said the international bidding process was planned to be launched last month. But it was delayed because the Attorney General’s Department wanted further time for clearance of related documents.
The Mannar Basin lies between Sri Lanka and India and is a failed rift basin. Large volumes of volcanic rocks were formed during volcanic activity in the Late Cretaceous to Early Paleocene period, along with many igneous intrusions. Two hydrocarbon discoveries—Barracuda and Dorado—were made in 2011 in the northern part of the basin and are linked to this volcanic activity. A major challenge in exploring for oil and gas in such volcanic areas is imaging rocks beneath the basalt layers, as basalts transmit seismic waves differently from sedimentary rocks. Reprocessing existing seismic data using modern techniques has improved the visibility of sediments and structures beneath the basalt, according to a research paper published on the website of the Petroleum Development Authority.
Jude Saturday, 10 January 2026 09:43 AM
Since government have no money to spend on oil and gas exploration!! The winning bidder gonna demand 80-20. That means 80% of revenue for 20 years for the investor.
Jude Saturday, 10 January 2026 09:53 AM
The oil and gas exploration gonna be huge cost and time. If you deal with a American investment banker, for oil exploration then you will benefit upto some extent. Remember some can drill oil barrel at $20 per barrel for some it cost $83
Keep Sri Lanka Neutral Sunday, 11 January 2026 09:52 PM
Yes and an American company drilling in Sri Lanka will ultimately mean that Trump will claim your Sr Lanka as his own. To build pleasure palaces like the ones proposed on the Gaza strip, thus displacing Palestinians from their own land. In this case Sri Lankans from Sri Lanka. Where would YOU go then "Jude".
Dr .Naga Sunday, 11 January 2026 10:49 PM
ONLY POSITIVITY IN THE GULF OF MANNAR FROM COSTEL 30 TO 40 KM AWAY. NO CHANGE IN THE LAND OF MANNAR OIL AND GAS EXPLORATION.
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