Sri Lanka is estimated to have up to three trillion cubic feet of natural gas in its offshore reserves, according to an interview published by The Sunday Morning.
Quoting Petroleum Development Authority of Sri Lanka Chairman Saliya Wickramasuriya, the report said the country also has the potential for “several billion barrels” of crude oil beneath its seabed within territorial waters and the Exclusive Economic Zone.
The estimates are based on basin modelling and seismic data gathered over recent years, which have improved understanding of Sri Lanka’s offshore resource potential.
However, the report noted that commercial extraction is unlikely to begin in the immediate future, as the process of attracting investors and issuing exploration licences remains at an early stage.
Sri Lanka has recently introduced a new regulatory framework, including the Petroleum Resources Act of 2021, aimed at improving transparency and building investor confidence in offshore exploration.
Under the “Explore Sri Lanka” programme, authorities have shifted from traditional bid rounds to an open licensing system, dividing offshore areas into smaller blocks to encourage wider participation by international energy companies.
According to the PDASL, several global firms have already expressed interest in exploring Sri Lanka’s offshore resources, signalling renewed momentum in a sector that has seen limited progress for decades. (Newswire)
Read the full Interview
