Sri Lanka pitches Mannar Basin oil and gas blocks to global investors
Daily FT: The Government and the Petroleum Development Authority of Sri Lanka (PDASL) took the country’s offshore oil and gas acreage to global investors, presenting the Sri Lanka Licensing Round 2026 (SL2026-01) at the World Energies Summit in London on 29-30 September, the opening leg of an international roadshow ahead of a 2 February 2027 bid deadline.
The Round offers four exploration blocks covering approximately 33,964 km² in the Mannar Basin, where previous exploration resulted in gas and condensate (a light liquid hydrocarbon) discoveries and demonstrated a working petroleum system, meaning the geological conditions needed to generate and trap oil and gas are present.
The blocks are 2026-MB-01 (5,948.95 km²), 2026-MB-02 (5,689.05 km²), 2026-MB-03 (10,597.67 km²), and 2026-MB-04 (11,728.30 km²), in water depths ranging from approximately 100 metres to 3,000 metres.
The Round opened on 25 August, with bid documents issued and a data room, a repository of available geological and geophysical information, opened to prospective investors for their own technical evaluation.
The PDASL described the Mannar Basin as Sri Lanka’s most established offshore petroleum opportunity, but said it remains comparatively underexplored. Only a limited number of modern exploration wells have been drilled, leaving substantial areas untested and significant scope for evaluation using modern subsurface technologies.
In London, the delegation engaged directly with international exploration and production (E&P) companies, new ventures teams, geoscience organisations, and senior upstream decision-makers, explaining the licensing framework and encouraging prospective bidders to begin evaluating the acreage.
PDASL Director General Dr. Neil De Silva said the aim was to give international explorers the opportunity to understand the basin, examine the technical information and engage directly with the PDASL, and urged companies interested in frontier and emerging offshore opportunities to participate.
Energy Minister Anura Karunathilaka said: “Sri Lanka is presenting a clear invitation to the international upstream industry. We have four substantial exploration blocks available in the Mannar Basin and are committed to creating the conditions for responsible international investment and long-term partnership.”
Sri Lanka is seeking experienced international energy companies with the technical expertise, investment, and offshore capability to evaluate and responsibly develop its petroleum resources.
The roadshow continues with a virtual investor briefing on 21 October, covering the basin, the four blocks, technical information, the licensing process, data room access, and key dates, followed by questions from investors. It then moves to the Asia Petroleum Geoscience Conference and Exhibition 2026 in Kuala Lumpur on 16-17 November, targeting the Asia-Pacific upstream and geoscience community.
Bid clarification requests are due by 12 January 2027, and final bids by 2 February 2027. The PDASL urged companies to begin technical evaluation and engagement with the agency as early as possible.
OSL take:
Sri Lanka is stepping up efforts to attract foreign investment into its energy industry, with a new offshore licensing round offering international oil and gas companies opportunities to explore the country’s largely untapped petroleum resources. The Sri Lankan Government and the PDASL presented the Sri Lanka Licensing Round 2026 at the World Energies Summit in London, promoting four exploration blocks covering approximately 33,964 square kilometres in the Mannar Basin. The bidding deadline is 2 February 2027. Previous exploration has identified gas and condensate in the basin, indicating potential for further discoveries. With relatively few modern exploration wells drilled, business/investment opportunities exist for international companies to deploy advanced seismic imaging, geological analysis and deepwater exploration technologies. Beyond exploration and production, foreign investment could flow into offshore engineering, seismic surveys, drilling services, subsea infrastructure, equipment supply and environmental monitoring. Local partnerships could generate additional demand for marine logistics, technical training and specialised services. Commercial discoveries could create opportunities in natural gas processing, storage, transportation and related infrastructure, potentially strengthening domestic energy security and supporting industrial development. However, investment returns will depend on exploration results, development costs, global energy prices and the regulatory framework. Sri Lanka’s wider energy industry also offers opportunities in renewable energy, battery storage and electricity grid modernisation, allowing investors to diversify across emerging energy markets. The offshore licensing programme represents a step towards integrating Sri Lanka into the international upstream energy industry. Transparent licensing, predictable investment terms and responsible environmental management will be essential to attracting long-term capital. For foreign investors, the Mannar Basin offers an opportunity to enter an emerging exploration market, with potential to establish a foothold in Sri Lanka’s expanding energy sector.
| Article Code : | VBS/AT/20261013Z_4 |