Sri Lanka plans to open international tenders in early December, inviting bids for oil and gas exploration and development in the Mannar Basin, an official from the Petroleum Development Authority said.
The government had previously sought a consultancy firm to manage the bidding process for upstream petroleum development. However, the official noted that tenders will be called for exploration and development in the Mannar Basin regardless of whether a consultant is appointed.
According to a 2021 statement by the Parliamentary Media Unit, the Mannar Basin holds oil and gas resources valued at around USD 267 billion.
The tender process is expected to attract participation from both multinational and national oil companies worldwide and will remain open for four to five months.
The National People’s Power (NPP) government has prioritized expediting the process, with four wells in the Mannar Basin set for development. In 2011, Cairn Lanka Limited, a subsidiary of an Indian company, drilled two wells in the basin and discovered natural gas in the Barracuda and Dorado fields.
Sri Lanka gazetted a national policy on natural gas in September 2020 to encourage domestic gas use and support operators in commercializing offshore resources. The Petroleum Resources Act No. 21 of 2021 was also enacted to regulate exploration and production activities.
Oil companies from countries such as Qatar and India have already expressed interest in investing in Sri Lanka’s oil and gas sector, and the government remains confident that the identified petroleum resources hold significant commercial potential.
