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Sri Lanka's government, acting through the Petroleum Development Authority of Sri Lanka (PDASL), has kicked off the Sri Lanka Licensing Round 2026 (SL2026-01). Qualified energy firms are being asked to assess four offshore exploration blocks that collectively cover about 33,964 square kilometres in the Mannar Basin.
These blocks form part of a basin spanning roughly 42,000 square kilometres off western Sri Lanka. Over twenty years of geological and geophysical research, encompassing 2D and 3D seismic surveys, have revealed a working petroleum system, and earlier drilling has verified the presence of hydrocarbons.
Cairn Lanka drilled four exploration wells in the basin from 2011 to 2013. Gas and condensate were found at the Dorado and Barracuda wells, showing that hydrocarbons had been generated, migrated and accumulated in the area.
PDASL Director General Dr Neil DeSilva stated that earlier exploration had proven a working petroleum system exists in the Mannar Basin. He noted that the mix of considerable available acreage, technical data and Sri Lanka's reinforced regulatory framework gives international explorers a strong reason to re-examine the basin.
Potential source-rock intervals within the Mesozoic succession have been pinpointed by technical studies, together with sandstone reservoirs and prospective deep-water channels, submarine fans and other depositional systems. Structural closures, stratigraphic traps, channel systems, submarine fan complexes and combination traps are among the exploration concepts.
The four blocks are 2026-MB-01, spanning 5,948.95 square kilometres; 2026-MB-02, spanning 5,689.05 square kilometres; 2026-MB-03, spanning 10,597.67 square kilometres; and 2026-MB-04, spanning 11,728.30 square kilometres. Water depths run from roughly 100 metres to 3,000 metres.
PDASL noted that large portions of the basin are still lightly explored, with just a small number of wells drilled across the broader 42,000-square-kilometre area. Firms joining the licensing round will be able to review geological, geophysical and seismic information via the licensing data room to aid their assessments.
The licensing round was announced and the data room opened on August 25, 2026. A international investor roadshow is set for September 29-30 in London, then a virtual investor briefing on October 21 and investor engagement in Kuala Lumpur on November 16-17.
Bid clarification requests are due by January 12, 2027, and final bids must be submitted by February 2, 2027. Successful bidders will be notified afterward, and Petroleum Resource Agreements will be signed under the formal evaluation and award process.
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