SRI LANKA LICENSING ROUND 2026: HYDROCARBON POTENTIAL OF THE MANNAR BASIN
SL2026-01 offers four offshore exploration blocks covering almost 34,000 km² in a basin where previous drilling has demonstrated a working petroleum system
COLOMBO, Sri Lanka – 1st September 2026 – The Government of Sri Lanka, through the Petroleum Development Authority of Sri Lanka (PDASL), is inviting qualified energy companies to evaluate four offshore exploration blocks covering approximately 33,964 km² in the Mannar Basin as part of the Sri Lanka Licensing Round 2026 (SL2026-01).
The acreage provides explorers with an opportunity to evaluate substantial offshore positions within a basin where previous exploration has resulted in gas and condensate discoveries and demonstrated the presence of a working petroleum system.
Hydrocarbon Potential of the Mannar Basin
Situated offshore western Sri Lanka, the Mannar Basin covers approximately 42,000 km² and forms part of a rift system associated with the breakup of Gondwana.
More than two decades of exploration, together with regional geological and geophysical studies and 2D and 3D seismic data, have significantly advanced understanding of the basin and provided evidence for a working petroleum system.
Despite this, only a limited number of exploration wells have been drilled across the basin, leaving substantial areas untested by the drill bit.
Historical Exploration
The basin entered an important new phase of exploration through Cairn Lanka’s drilling programme between 2011 and 2013.
Four exploration wells were drilled during the programme, with Dorado and Barracuda encountering gas and condensate, confirming the presence of hydrocarbons within the basin.
The discoveries demonstrated that hydrocarbons have been generated, migrated and accumulated within the basin and provided valuable subsurface information for the evaluation of future exploration opportunities.
Dr. Neil DeSilva, Director General of PDASL, commented on the prospectivity:
“Previous exploration has demonstrated the presence of a working petroleum system in the Mannar Basin. The combination of substantial available acreage, technical information and Sri Lanka’s strengthened regulatory framework provides international explorers with a compelling opportunity to take a fresh look at the basin.”
A Petroleum System with Multiple Exploration Opportunities
Technical studies of the Mannar Basin show multiple potential source-rock intervals and a range of prospective reservoir and trapping configurations.
Potential source-rock intervals have been identified or interpreted within the Mesozoic succession, including Upper Jurassic, Aptian/Albian and Upper Cretaceous intervals, while geochemical studies and basin modelling support the potential for hydrocarbon generation within the basin.
Previous drilling has demonstrated the presence of sandstone reservoir intervals, while regional seismic interpretation indicates additional deep-water channel, submarine fan and associated depositional systems extending across parts of the basin.
A range of exploration play concepts has been identified, including structural closures, stratigraphic traps, submarine fan complexes, channel systems and combination traps across different stratigraphic levels.
Together, these provide international explorers with multiple potential exploration targets across a basin that remains comparatively lightly drilled.
Significant Remaining Exploration Potential
The importance of the Mannar Basin proposition lies in the combination of what is already known and what remains to be tested.
Previous drilling has resulted in gas and condensate discoveries. At the same time, only a small number of exploration wells have been drilled across a basin covering approximately 42,000 km².
Large areas therefore remain comparatively underexplored, providing an opportunity for international companies to apply modern seismic processing, subsurface interpretation and exploration technologies to reassess the basin.
The Sri Lanka Licensing Round 2026 provides access to four substantial offshore blocks through which companies can undertake their own technical evaluation of this remaining potential.
Technical Data and Evaluation
Prospective investors will be able to access geological and geophysical information through the Licensing Round Data Room to support evaluation of the available acreage.
The combination of historical exploration results, seismic information, modern reprocessing and additional geophysical datasets provides companies with a substantial technical foundation from which to develop their own interpretation of the Mannar Basin.
Companies are encouraged to engage directly with PDASL regarding Data Room access and the technical information available for SL2026-01.
The Licensing Round offers four exploration blocks:
2026-MB-01 – 5,948.95 km²
2026-MB-02 – 5,689.05 km²
2026-MB-03 – 10,597.67 km²
2026-MB-04 – 11,728.30 km²
Together, the blocks cover approximately 33,964 km², across water depths ranging from approximately 100 metres to 3,000 metres.
Key Licensing Round Dates
25th August 2026 – Licensing Round Announcement
25th August 2026 – Bid Documents Issued
25th August 2026 – Data Room Opens
29th–30th September 2026 – International Investor Roadshow Opening, London
21st October 2026 – Virtual Investor Briefing
16th–17th November 2026 – Investor Engagement, Kuala Lumpur
12th January 2027 – Bid Clarification Requests Deadline
02nd February 2027 – Final Deadline for Submission of Bids
02nd February 2027 – Opening of Bids
Notification to successful bidders and the signing of Petroleum Resource Agreements will follow in accordance with the formal evaluation and award process, with dates to be announced.
About the Petroleum Development Authority of Sri Lanka
The Petroleum Development Authority of Sri Lanka (PDASL) is the upstream petroleum regulator established under the Petroleum Resources Act, No. 21 of 2021.
PDASL is responsible for regulating petroleum exploration and development activities, managing petroleum resources in Sri Lanka and supporting responsible international investment in the country’s petroleum resources.
About the Sri Lanka Licensing Round 2026
Through the Sri Lanka Licensing Round 2026 (SL2026-01), the Government of Sri Lanka is offering four offshore exploration blocks in the Mannar Basin to qualified upstream investors.
The four blocks - 2026-MB-01, 2026-MB-02, 2026-MB-03 and 2026-MB-04 - together cover approximately 33,964 km² of offshore acreage.
Media & Investor Enquiries
PDASL TEAM
Email: slr2026@pdasl.gov.lk
Call: +94 (0) 11 233 2002 / +94 (0) 71 324 6836
FRONTIER TEAM
Email: slr2026@frontierenergy.network
Call: +44 (0) 20 8194 7051
ENDS
