Sri Lanka is pursuing an innovative oil and gas leasing strategy that is designed to counter a history of failed licensing rounds and encourage the development of its offshore acreage, including the M2 deep-water block.

The nation is following a two-pronged strategy of offering blocks through a mix of licensing rounds and joint study agreements with potential players.

It is also breaking exploration tracts into smaller units to make them more attractive to investors, says Sri Lanka Energy Minister Udaya Gammanpila.