The Government of Sri Lanka, through the Petroleum Development Authority of Sri Lanka (PDASL), has launched the Sri Lanka Licensing Round 2026 (SL2026-01), inviting qualified energy companies to evaluate four offshore exploration blocks covering approximately 33,964 square kilometres in the Mannar Basin.
The blocks are part of
a basin covering about 42,000 square kilometres offshore western Sri Lanka.
More than two decades of geological and geophysical studies, including 2D and
3D seismic surveys, have identified a working petroleum system, while previous
exploration has confirmed the presence of hydrocarbons.
Between 2011 and 2013,
Cairn Lanka drilled four exploration wells in the basin. The Dorado and
Barracuda wells encountered gas and condensate, providing evidence that
hydrocarbons had been generated, migrated and accumulated in the area.
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.”
Technical studies have
identified potential source-rock intervals within the Mesozoic succession,
alongside sandstone reservoirs and prospective deep-water channels, submarine
fans and other depositional systems. Exploration concepts include structural closures,
stratigraphic traps, channel systems, submarine fan complexes and combination
traps.
The four blocks are
2026-MB-01, covering 5,948.95 square kilometres; 2026-MB-02, covering 5,689.05
square kilometres; 2026-MB-03, covering 10,597.67 square kilometres; and
2026-MB-04, covering 11,728.30 square kilometres. Water depths range from
approximately 100 metres to 3,000 metres.
PDASL said substantial
parts of the basin remain lightly explored, with only a limited number of wells
drilled across the wider 42,000-square-kilometre area. Companies participating
in the licensing round will have access to geological, geophysical and seismic
information through the licensing data room to support their evaluations.
The licensing round
was announced and the data room opened on August 25, 2026. An international
investor roadshow is scheduled for September 29-30 in London, followed by a
virtual investor briefing on October 21 and investor engagement in Kuala Lumpur
on November 16-17.
The deadline for bid
clarification requests is January 12, 2027, while final bids must be submitted
by February 2, 2027. Successful bidders will subsequently be notified and
Petroleum Resource Agreements signed in accordance with the formal evaluation
and award process. -OGN/TradeArabia News Service