Sri Lanka Oil & Gas Licensing Round
Sri Lanka has launched a new bidding round covering four offshore exploration blocks, inviting international oil and gas companies back into a sector that has seen little activity for more than a decade.
This page sets out what is on offer and tracks the licensing round as it develops.
At a glance
- What is on offer
- Four offshore exploration blocks
- Who can bid
- International oil and gas companies
- Status
- Bidding round launched
- Preceded by
- More than a decade of inactivity in the sector
- Stated aim
- Cut dependence on imported fuel and ease pressure on foreign reserves
What the bid round involves
The government has invited energy firms to submit proposals for the right to explore four designated offshore blocks around the island. Authorities are betting that global appetite for new energy sources, combined with improved investment conditions, will draw interest from established upstream operators.
Why Sri Lanka is doing this
Imported fossil fuels have long placed heavy strain on Sri Lanka's foreign exchange reserves, and energy security became a policy priority during the country's economic recovery. Domestic production is presented as a pillar of long-term stabilisation: cutting the fuel import bill, generating revenue through licensing fees and production-sharing arrangements, and insulating the island from swings in global oil prices.
What is still unknown
Offshore Sri Lanka is widely considered to hold promising hydrocarbon reserves, but large-scale commercial exploration has been limited and no commercial production has followed previous efforts. Exploration is slow, capital-intensive and frequently unsuccessful — an award is the start of a long process, not a discovery.
Related coverage
The Mannar Basin bid is covered separately, along with the energy-independence and foreign-exchange arguments behind it.
Latest Sri Lanka Oil & Gas Licensing Round news
- Sri Lanka Opens Mannar Basin to Foreign Energy Firms with Four New Exploration Blocks
- Sri Lanka Revives Offshore Oil Exploration Drive to Ease Costly Import Burden
- Sri Lanka Oil and Gas Licensing Round Opens to International Companies
- Mannar Basin Oil and Gas Bid Signals Sri Lanka's Push for Energy Independence and Dollar Savings
- Norway's Draugen Power-from-Shore Project: A Blueprint Sri Lanka's Offshore Industry Cannot Afford to Ignore
- Iran Threatens to Disrupt Middle East Energy Routes as US Strikes Escalate
- US-Iran Strikes Escalate as Khamenei Buried and Hormuz Shipping Traffic Plummets
- Sri Lanka Plunged Into Darkness as Middle East Conflict Tightens Energy Supply
- 25 Dead in Separate Aviation Disasters Striking Saudi Arabia and France
- Iran reviewing US proposal to end war, though key demands remain unaddressed
- US intercepts three Iranian oil tankers in Asian waters - Report
- White House deems two-week ceasefire “a victory for the United States”
Frequently asked questions
How many blocks is Sri Lanka offering?
Four offshore exploration blocks are included in the current bidding round.
Who can bid for Sri Lanka's offshore blocks?
The round is open to international oil and gas companies, which authorities hope will bring the technical expertise, equipment and capital that offshore exploration requires.
Why is Sri Lanka reopening offshore exploration now?
To reduce dependence on imported fuel, which strains foreign exchange reserves, and to establish domestic energy production as part of long-term economic stabilisation. It follows more than a decade of limited activity in the sector.
Has Sri Lanka found oil or gas offshore?
Offshore Sri Lanka is considered to hold promising reserves, but commercial exploration has been limited and no commercial production has resulted from earlier efforts. A licensing round is the beginning of exploration, not a discovery.