All set for international bidding for oil and gas exploration, development

• Qatari, Indian companies have already shown interest 
• Hydrocarbon deposits found in two wells in the Mannar basin

By Kelum Bandara 

The energy companies from countries such as Qatar and India have already shown interest in participation in the exploration and development of hydrocarbon resources (oil and natural gas) in four blocks of the Mannar basin, an official said yesterday. 

An official of Sri Lanka Petroleum Development Authority told Daily Mirror that international bidding would be launched ‘very soon’ with a six-month period for prospective global energy companies and national oil companies of different countries to make their submissions. 

According to exploration done in 2011, India’s Cairn found hydrocarbon deposits in two wells in the Mannar basin- Barracuda and Dorado. 

The Petroleum Resources Act No. 21 of 2021 stipulates that oil exploration and development should be undertaken only through an international tender process. Offshore Sri Lanka consists of four sub-basins: Cauvery, Mannar, South Lanka, and East Lanka. Past discoveries have proven the petroleum system in the Mannar basin. 

The official said the international bidding process was planned to be launched last month. But it was delayed because the Attorney General’s Department wanted further time for clearance of related documents. 

The Mannar Basin lies between Sri Lanka and India and is a failed rift basin. Large volumes of volcanic rocks were formed during volcanic activity in the Late Cretaceous to Early Paleocene period, along with many igneous intrusions. Two hydrocarbon discoveries—Barracuda and Dorado—were made in 2011 in the northern part of the basin and are linked to this volcanic activity. A major challenge in exploring for oil and gas in such volcanic areas is imaging rocks beneath the basalt layers, as basalts transmit seismic waves differently from sedimentary rocks. Reprocessing existing seismic data using modern techniques has improved the visibility of sediments and structures beneath the basalt, according to a research paper published on the website of the Petroleum Development Authority.