Sri Lanka opens four offshore oil and gas blocks to investors
The licensing round comes as Sri Lanka looks to build on more than two decades of geological and geophysical studies, including 2D and 3D seismic surveys
16 September, 2026
TT
16
Sri Lanka has launched its 2026 offshore licensing round, inviting international energy companies to bid for four exploration blocks covering nearly 34,000 square kilometres in the Mannar Basin as the country seeks to attract fresh upstream investment and accelerate offshore hydrocarbon exploration.
The Sri Lanka Licensing Round 2026 (SL2026-01), administered by the Petroleum Development Authority of Sri Lanka (PDASL), offers four offshore blocks spanning approximately 33,964 square kilometres in water depths ranging from around 100 metres to 3,000 metres. The acreage forms part of the Mannar Basin, an offshore sedimentary basin where previous exploration has confirmed gas and condensate discoveries.
The licensing round comes as Sri Lanka looks to build on more than two decades of geological and geophysical studies, including 2D and 3D seismic surveys, while applying modern exploration technologies to areas that remain largely untested.
According to PDASL, the Mannar Basin covers around 42,000 square kilometres offshore western Sri Lanka and forms part of a rift system associated with the breakup of Gondwana. Although exploration has confirmed a working petroleum system, only a handful of exploration wells have been drilled across the basin.
Between 2011 and 2013, Cairn Lanka drilled four exploration wells, with the Dorado and Barracuda wells encountering gas and condensate, demonstrating hydrocarbon generation, migration and accumulation within the basin.
Dr Neil DeSilva, Director General of PDASL, said: “Previous exploration has demonstrated the presence of a working petroleum system in the Mannar Basin. The combination of substantial available acreage, technical information and Sri Lanka’s strengthened regulatory framework provides international explorers with a compelling opportunity to take a fresh look at the basin.”
PDASL said technical studies indicate multiple potential source-rock intervals, sandstone reservoirs and a range of structural and stratigraphic trapping mechanisms, including deep-water channel and submarine fan systems. The authority believes the relatively low level of drilling leaves significant remaining exploration potential across the basin.
The four exploration blocks available are:
- 2026-MB-01: 5,948.95 sq km
- 2026-MB-02: 5,689.05 sq km
- 2026-MB-03: 10,597.67 sq km
- 2026-MB-04: 11,728.30 sq km
Interested companies will have access to geological and geophysical information through a dedicated data room to support technical evaluations. PDASL said bid documents have already been issued, with the data room now open.
The licensing process includes investor roadshows in London in September and Kuala Lumpur in November, followed by a virtual investor briefing in October. Bid clarification requests close on 12 January 2027, while final bids must be submitted by 2 February 2027.





















