Sri Lanka’s ambition to become an oil-producing nation has suffered a setback after the planned international tender process for offshore oil and gas exploration and development was delayed due to an unresolved court case, an official said yesterday.

The Sri Lanka Petroleum Development Authority (SLPDA) had planned to call for international bids earlier this month, but the process could not proceed because of the ongoing legal matter.

Exploration carried out in 2011 by India’s Cairn India identified hydrocarbon deposits in two wells, Barracuda and Dorado, in the Mannar Basin. Under the Petroleum Resources Act No. 21 of 2021, oil and gas exploration and development must be conducted through an international competitive bidding process. Sri Lanka’s offshore region includes four sub-basins—Cauvery, Mannar, South Lanka, and East Lanka—with confirmed evidence of a proven petroleum system in the Mannar Basin.

The international bidding round was initially scheduled for December but was postponed after the Attorney General’s Department requested additional time to review and clear the necessary documents.

Commenting on the current situation, Ceylon Petroleum Corporation (CPC) Chairman D. A. Rajakaruna said the tender process would face further delays due to the unresolved legal issues. “We are currently in discussions with the Attorney General’s Department to resolve all outstanding matters. The tender process will be initiated once these issues are cleared,” he said.

According to a 2021 statement by the Parliamentary Media Unit, oil and gas resources in the Mannar Basin are estimated to be worth around US$ 267 billion. Meanwhile, oil companies from countries such as Qatar and India have already expressed interest in participating in Sri Lanka’s oil and gas exploration and development projects.