Sri Lanka is opening up a new chapter for its offshore oil and gas industry, with four exploration blocks in the Mannar Basin being offered to qualified international energy companies through the country’s 2026 licensing round.
The opportunity covers almost 34,000 square kilometres of offshore acreage, with the government looking to attract international expertise and investment into a basin where previous exploration has already demonstrated a working petroleum system.
Four Offshore Blocks Open for Exploration
The Sri Lanka Licensing Round 2026 offers four exploration blocks across the Mannar Basin, covering a combined area of approximately 33,964 square kilometres.
The blocks range from around 5,689 square kilometres to 11,728 square kilometres and extend across water depths of approximately 100 metres to 3,000 metres, giving prospective investors access to a substantial offshore exploration position.
International companies will have access to geological and geophysical information through the licensing process, allowing them to assess the available acreage and its exploration potential before making investment decisions.
A Basin With Previous Discoveries
The Mannar Basin is already established as Sri Lanka’s most explored offshore petroleum basin. Previous exploration has demonstrated the presence of a working petroleum system and resulted in gas and condensate discoveries.
However, significant areas remain comparatively underexplored. The latest licensing round is therefore designed to give experienced international explorers the opportunity to apply modern technologies and geological interpretation techniques to the available acreage.
The opportunity follows earlier exploration activity in the basin, including drilling carried out by Cairn Lanka, which identified natural gas and condensate but did not progress to commercial production.
Creating Opportunities Across the Energy Supply Chain
For the wider oil and gas industry, offshore exploration can generate activity well beyond drilling itself.
A successful exploration programme could create opportunities for seismic surveying, engineering, drilling services, marine operations, logistics, equipment suppliers and specialist energy companies.
Sri Lanka is also seeking to build its upstream sector under the Petroleum Resources Act No. 21 of 2021, which established the Petroleum Development Authority of Sri Lanka as the country’s upstream petroleum regulator.
Taking the Opportunity to International Investors
The licensing round is being supported by an international investor engagement programme designed to introduce the Mannar Basin opportunity to the global upstream industry.
The programme includes an investor roadshow at the World Energies Summit in London on 29 and 30 September, followed by a virtual investor briefing on 21 October and further engagement in Kuala Lumpur in November.
The approach reflects Sri Lanka’s intention to attract companies with the technical expertise, financial capability and offshore exploration experience required to assess and potentially develop the available resources.
A New Phase for Sri Lanka’s Offshore Sector
With four blocks now available, Sri Lanka is seeking to bring fresh international attention to the Mannar Basin and encourage a new phase of offshore exploration.
The licensing round does not guarantee future commercial oil or gas production, as any development would depend on exploration results, appraisal and the commercial viability of resources discovered. However, the combination of sizeable offshore acreage, previous gas and condensate discoveries and newly available technical data gives international energy companies an opportunity to evaluate the basin in greater detail.
For Sri Lanka, the focus now turns to attracting experienced exploration companies and building international partnerships that could help develop its offshore petroleum resources.
Source: Petroleum Development Authority of Sri Lanka (PDASL)
Image source: Sri Lanka Licensing Round 2026 / Petroleum Development Authority of Sri Lanka (PDASL)