Hayleys Advantis will own 51 percent of Hayleys Energy Services and Edgo Merap 49 percent.
"With the sector-specific international expertise, experience and contacts of Edgo Merap, this joint venture will be up and running as a formidable total-service provider when exploration, and hopefully extraction, begins," Hayleys group deputy chairman Mohan Pandithage, said in a statement.
The new joint venture hopes to provide petroleum related services to Sri Lanka and also overseas locations.
Sri Lanka's first exploration license was given to an Indian unit of Cairn Energy this year.
Edgo Merap chairperson Koosum Kalyan said her company would provide oil industry experts to the joint venture.
Hayleys said Edgo which was formed in 1956 as an engineering company, now had operations in the Middle East, Africa, Europe and North America.It provides drilling services, hydro-geological studies and land development. The group also has interests in water, power, construction and telecoms, Hayleys said.
Hayleys Advantis is a logistics firm which operates in North America, Western Europe, Far East, South Asia and Pacific Islands.
Revised and corrected