Sri Lanka Offshore Licensing Round 2026: Mannar Basin exploration blocks

The Government of Sri Lanka has opened a competitive offshore exploration licensing round for 2026, designated SL2026-01 and administered by the Petroleum Development Authority of Sri Lanka (PDASL) under the Petroleum Resources Act No. 21 of 2021. Official announcements describe it as an opportunity for qualified international and domestic energy companies to bid for acreage in the Mannar Basin, off the west coast.

This article summarises investor-relevant facts published by PDASL, in our own words. Some dates in the official timetable are already in the past as of mid-November 2026; later announcements may still change remaining deadlines. For guidance, contact Kenglobe Lanka — we do not publish third-party application routes or contact details on this page.

The acreage on offer

Four blocks are offered, with a combined area of about 33,964 km²:

Block	Area	Water depth (as published)
2026-MB-01	5,948.95 km²	About 100–2,000 m
2026-MB-02	5,689.05 km²	About 100–2,500 m
2026-MB-03	10,597.67 km²	About 100–3,000 m
2026-MB-04	11,728.30 km²	About 100–3,000 m

The Mannar Basin sits west of Sri Lanka and south-east of India. Official descriptions place it in the broader Cauvery system, as an intra-cratonic failed rift linked to the break-up of Gondwana. The India–Sri Lanka maritime boundary is said to divide the basin nearly in half, with the Sri Lankan side covering about 42,000 km². Much of the basin lies in water depths of more than 1,000 m, increasing to about 3,000 m in the south. Sri Lanka’s wider offshore petroleum province also includes the Cauvery and Lanka Basin areas; this round’s offered acreage is in the Mannar Basin.

What exploration has already shown

PDASL describes the Mannar Basin as Sri Lanka’s most prospective offshore basin, explored for more than five decades. Drilling of the Dorado and Barracuda wells confirmed a working petroleum system, and Sri Lanka’s first offshore natural gas discoveries were made in 2011. A later official briefing notes that Cairn Lanka drilled four exploration wells between 2011 and 2013, with Dorado and Barracuda encountering gas and condensate.

Official “why invest” points include mature source rocks, effective migration, high-quality reservoirs, regional seals and working traps; remaining upside in lightly explored parts of the basin; a domestic gas market in the power and industrial sectors; and a stated role for Mannar gas in coal displacement, renewable integration and lower-emission supply. Published petroleum-system elements include mature shales (source), clastics and carbonates (reservoir), shales and evaporites (seals), and structural and stratigraphic traps.

Technical data cited in official materials include more than 11,000 line km of 2D seismic, limited conventional 3D seismic in West Mannar, well data for calibration, basin studies and reports, and about 40,000 km² of enhanced subsurface imaging derived from 2D seismic. Available petroleum information is also described as including seismic, gravity, gravity-gradiometry, magnetic and well data, with some modern processing and reprocessing.

Timetable (as published — some dates are already past)

As of the official announcements reviewed in mid-November 2026:

• 25 August 2026 — licensing round announced; bid documents issued.
• Data room — the 25 August launch announcement said the data room would be available from 1 September 2026; a later official timetable lists the data room as opening on 25 August 2026. We cannot reconcile those two published dates from the materials alone.
• 29–30 September 2026 — international investor roadshow opening in London (now past).
• 21 October 2026 — virtual investor briefing (now past).
• 16–17 November 2026 — investor engagement in Kuala Lumpur, at the Asia Petroleum Geoscience Conference & Exhibition 2026 (imminent or ongoing relative to this article).
• 12 January 2027 — deadline for bid clarification requests.
• 2 February 2027 — final deadline for submission of bids, and the date listed for the opening of bids.

Notification of successful bidders and the signing of Petroleum Resources Agreements were still to be announced.

Legal and commercial framework (summary only)

PDASL is the statutory regulator for petroleum exploration, development and production, operating under the Ministry of Energy and established under the Petroleum Resources Act No. 21 of 2021. Official FAQs also note upstream local-content guidelines covering employment, training, skills development for Sri Lankan nationals, technology transfer and participation by Sri Lankan businesses.

A published summary of the Model Petroleum Resources Agreement (updated 1 September 2026) lists, as illustrative highlights only:

• an exploration period of up to eight years, in three phases of 3 + 2 + 3 years;
• petroleum operations to commence within six months of the effective date;
• a performance bank guarantee equal to 25% of total LMS for the entire minimum work programme (LMS is not spelled out in the published summary);
• a minimum signature bonus of USD 500,000;
• a government option to take profit petroleum in cash or in kind;
• a possible extension of the exploration period by up to 24 months to complete an appraisal programme, subject to the agreement.

The fiscal framework is described as including royalty, cost recovery, profit sharing, tax and duties, stabilisation provisions and bonuses. Official materials state that the full model agreement and the applicable laws prevail over any website summary. After bids are submitted, they are evaluated against published criteria; successful investors then enter into a Petroleum Resources Agreement and obtain the required licence, following any negotiations and approvals.

How Kenglobe Lanka can help

This is a government licensing process for qualified upstream companies, not a real-estate listing. If you are assessing whether the Mannar Basin round is relevant to your investment programme, Kenglobe Lanka can provide guidance and help you engage with the official process.

Write to sh@kenigs.com or message us on WhatsApp.

Figures and dates are as published by PDASL and may be updated. This page is general information, not investment, legal or technical advice, and it is not an invitation to bid.