COLOMBO, Aug. 25 (Xinhua) -- Sri Lanka on Tuesday formally opened 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 restart a petroleum exploration drive that has remained stalled for years.
The Petroleum Development Authority of Sri Lanka said bids are expected to close in the early part of 2027, after which proposals will be evaluated and qualified operators selected. Successful bidders will be awarded exploration blocks through Petroleum Resources Agreements before seismic acquisition and exploratory drilling begin.
The licensing round is expected to cover four exploration blocks in the Mannar Basin, where earlier drilling has already established the presence of a working petroleum system and natural gas accumulations.
Ceylon Petroleum Corporation Managing Director Mayura Neththikumarage said the authority would seek technically competent oil and gas companies capable of carrying out exploration safely and in an environmentally responsible manner.
Previous exploration has already confirmed natural gas discoveries offshore Sri Lanka. Exploratory drilling by Cairn Lanka in 2011 encountered hydrocarbons in the Mannar Basin, establishing that the basin contains an active petroleum system.
The next stage will require more detailed exploration to determine the location, size and commercial viability of prospective resources.
Minister of Labor and Deputy Minister of Finance and Planning Anil Jayantha Fernando expressed confidence in Sri Lanka's oil and gas potential but acknowledged that exploration carried economic, environmental, social and geopolitical risks that would have to be managed as the program progresses.
The launch marks the latest attempt to attract international investment into the Mannar Basin after earlier exploration programs failed to progress to commercial production. ■