Sri Lanka has officially launched the Sri Lanka Licensing Round 2026 (SL2026‑01), inviting global energy companies to evaluate four offshore exploration blocks in the Mannar Basin—one of the country’s most promising yet under‑explored hydrocarbon regions.
The round, announced by the Petroleum Development Authority of Sri Lanka (PDASL) on August 25, 2026, covers 33,964 square kilometres across four designated blocks:
- 2026‑MB‑01 – 5,948.95 sq km
- 2026‑MB‑02 – 5,689.05 sq km
- 2026‑MB‑03 – 10,597.67 sq km
- 2026‑MB‑04 – 11,728.30 sq km
These blocks lie within the broader 42,000‑square‑kilometre Mannar Basin, with water depths ranging from 100 to 3,000 metres.
Proven Hydrocarbon Potential
PDASL Director General Dr. Neil DeSilva said the basin’s exploration history provides compelling evidence of a working petroleum system. Over two decades of geological and geophysical studies—including extensive 2D and 3D seismic surveys—have mapped source‑rock intervals, sandstone reservoirs, deep‑water channels, submarine fans and multiple trap systems.
Between 2011 and 2013, Cairn Lanka drilled four wells in the basin. The Dorado and Barracuda wells confirmed the presence of gas and condensate, demonstrating that hydrocarbons had been generated, migrated and accumulated.
“Earlier exploration has already proven that a working petroleum system exists in the Mannar Basin,” Dr. DeSilva noted, adding that the combination of large available acreage, robust technical datasets and Sri Lanka’s strengthened regulatory framework offers “a strong rationale for international explorers to re‑examine the basin.”
Lightly Explored, High‑Potential Acreage
Despite its size and favourable geological indicators, the Mannar Basin remains lightly explored, with only a handful of wells drilled across the entire region. PDASL officials say this leaves significant untapped potential for new entrants.
Companies participating in SL2026‑01 will gain access to the licensing data room, where they can review seismic, geological and geophysical datasets to support their technical assessments.
Global Investor Engagement
To attract international interest, PDASL has scheduled a series of investor events:
- London Investor Roadshow: September 29–30, 2026
- Virtual Investor Briefing: October 21, 2026
- Kuala Lumpur Engagement: November 16–17, 2026
Bid Timeline
- Clarification Requests Deadline: January 12, 2027
- Final Bid Submission: February 2, 2027
- Award Notifications: Following evaluation
- Petroleum Resource Agreements: To be signed thereafter
The licensing round marks a renewed push by Sri Lanka to position the Mannar Basin as a competitive frontier exploration destination, aiming to draw global investment into the country’s emerging energy sector.
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