Sri Lanka has launched its 2026 offshore oil and gas licensing round, inviting international energy companies to bid for exploration acreage in the Mannar Basin as the government seeks to jump-start an offshore petroleum drive that has been delayed for years.
Sri Lanka, through the Petroleum Development Authority of Sri Lanka (PDASL), is offering four offshore blocks in the Manna Basin off Sri Lanka’s north-western coast.
Prospective developers will have until early 2027 to lodge bids, after which formal evaluations will take place. Qualified operators will be awarded exploration blocks under Petroleum Resources Agreements prior to committing to seismic data acquisition and exploratory drilling.
Deepwater drilling previously conducted in the basin established the existence of a working petroleum system and natural gas accumulations, though past efforts failed to transition into commercial production.
Hydrocarbon potential in the region was previously proven in 2011, when an exploratory drilling campaign by Cairn Lanka struck natural gas in the Mannar Basin. However, exploration programmes stalled due to high development costs and legal disputes.
The upcoming round aims to build on those findings through detailed exploration to confirm the exact location, size, and commercial viability of prospective reserves.
Minister of Labour and Deputy Minister of Finance and Planning Anil Jayantha Fernando expressed optimism about the country’s natural resource potential, but cautioned that offshore energy development carries inherent risks.
He noted that economic, environmental, social, and geopolitical factors will need to be carefully managed as the program advances.
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