Courtesy The Daily Mirror

Colombo, November 4 (Daily Mirror) – Sri Lanka is planning to open international tenders during the first week of next month, calling for bids for oil and gas exploration and development in the Mannar Basin, an official said.

The government earlier invited tenders to select a consultancy firm with expertise to manage the international bidding process for upstream petroleum development. However, an official of the Petroleum Development Authority said that the government will proceed to call for fresh tenders for exploration and development in the Mannar Basin, with or without the appointment of a new consultant.

According to a 2021 press release issued by the Parliamentary Media Unit, oil and gas resources valued at around US$267 billion are available in the Mannar Basin.

The official, who wished to remain anonymous, said that multinational and national oil companies from across the world are expected to participate in the tender process, which will remain open for four to five months.

The government, led by the National People’s Power (NPP), has sought to expedite the process. Four wells in the Mannar Basin will be opened for development. Cairn Lanka Limited, a subsidiary of an Indian firm, drilled two exploration wells in the Mannar Basin in 2011 and discovered natural gas in the Barracuda and Dorado fields.

Sri Lanka gazetted a national policy on natural gas in September 2020, outlining strategies to create domestic demand and providing operators with options to commercialise offshore gas. In addition, the Petroleum Resources Act No. 21 of 2021 was introduced 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 oil and gas exploration and development projects.

The Sri Lankan government remains confident that the petroleum resources identified in its territorial waters will have commercial value.