Sri Lanka is preparing to open international tenders in the first week of next month to invite bids for oil and gas exploration and development in the Mannar Basin, according to official sources.
The government had previously called for tenders to select a consulting firm with expertise in managing the international bidding process for petroleum development. However, an official from the Petroleum Development Authority stated that the government has now decided to proceed with opening new tenders for exploration and development in the Mannar Basin, either with or without appointing a new consultant.
A 2021 press release issued by the Parliamentary Media Unit estimated that the Mannar Basin holds oil and gas resources valued at approximately US$267 billion.
The official further noted that both multinational and national oil companies are expected to participate in the tender process, which will remain open for four to five months. As part of the initiative, four oil wells in the Mannar Basin will be opened for development.
Natural gas was first discovered in the Mannar Basin in 2011 by Kane Lanka Limited, a subsidiary of an Indian company, after drilling two exploration wells.
Sri Lanka later gazetted a National Policy on Natural Gas in September 2020, setting out strategies to create domestic demand and providing operators with options for commercializing offshore gas. The Petroleum Resources Act No. 21 of 2021 was subsequently enacted to regulate exploration and production activities.
Oil companies from countries such as Qatar and India have already expressed interest in participating in Sri Lanka’s upcoming oil and gas exploration and development projects.
