Sri Lanka's planned 2025 offshore licensing round, a key initiative under its new Petroleum Development Act, has been delayed beyond its original November launch target and has yet to be officially launched. The round, intended to reduce the country's heavy reliance on oil imports, is expected to feature four exploration blocks in the Mannar basin.

Reasons for Delay and Current Status

The launch has been delayed, with one reported reason being the time required for the Attorney General’s Department to clear related documents. Preparatory work is reportedly in progress, and the government is expected to issue an official announcement on the timeline once all internal approvals are finalised. The authorities have not provided clarification on the new bidding timeline.

Details of the Planned Licensing Round

While official details are pending, the round is anticipated to include the offshore M2 block. This block hosts the Barracuda and Dorado discoveries, which have demonstrated a viable petroleum system in the region. Prior to the delay, the Petroleum Development Authority of Sri Lanka (PDASL) had tentatively set an initial launch date for 12 November 2025 and had begun seeking a marketing consultant to promote the round.

Parallel Energy Developments

Separately, Sri Lanka has begun negotiations for an LNG terminal and the use of Russian oil at its Sapugaskanda refinery. Furthermore, the Ceylon Petroleum Corporation completed an Expression of Interest process last September to expand the refinery's capacity to approximately 100,000 barrels per day.