Sri Lankan government to explore four petroleum and gas blocks in Mannar Basin
Daily FT: In a renewed push to attract foreign investment into the energy sector, the Cabinet of Ministers at their meeting last Wednesday approved the exploration and potential production of petroleum and natural gas in four offshore plots within the Mannar Basin.
To support this initiative, the Cabinet of Ministers also approved the engagement of a qualified marketing consultant to develop and implement a targeted promotion strategy.
Addressing the weekly post-Cabinet meeting media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the aim is to woo credible investors with the technical and financial capacity to explore and develop the identified blocks.
The move follows earlier discoveries made by Cairn Lanka Ltd., in 2011, which confirmed two viable natural gas deposits in the M2 exploration block.
These findings validated the existence of a functioning hydrocarbon system in the region, raising the Basin’s profile as a prospective area for offshore energy development.
In accordance with the provisions of the Petroleum Resources Act, No. 21 of 2021, the Sri Lanka Petroleum Development Authority (SLPDA) has been vested the powers to call for investment proposals for the offshore petroleum and natural gas exploration plots in terms of the prescribed procedures of the regulations approved by the Cabinet of Ministers.
In 2021, a Government Gazette notification published a map of blocks for joint exploration for oil and gas in the Mannar Basin (https://www.ft.lk/front-page/Oil-and-gas-exploration-in-Mannar-Basin-mapped/44-721329).
Responding to questions about the outcomes of earlier exploration efforts, Dr. Jayatissa said the fresh push for investors is to secure new partnerships and commercialise the untapped resources, based on those studies conducted under previous administrations.
OSL take:
Sri Lanka’s power and energy industry has become a hotspot for business/investment opportunities. With the country on a path to becoming a regional hub, the demand for power and energy has presented many opportunities for foreign businesses/investors. It is in such a backdrop that Sri Lanka has announced plans to engage in oil exploration. Sri Lanka’s geographical positioning in the Indian Ocean in close proximity of international shipping lanes and the overall economic expansion all indicate that engagement in Sri Lanka’s oil exploration programme could present lucrative business ventures for foreign businesses/investors on the lookout for such in the region. The growing business potential in Sri Lanka’s energy industry is evident by the interest shown by foreign businesses in the energy sector entering the industry. The expansion into oil exploration therefore will be seen as a further opportunity for expanding operations in the region by foreign businesses/investors.
| Article Code : | VBS/AT/20250515/Z_4 |