Pakistan Reopens Offshore Oil, Gas Hunt After 20 Years

Pakistan’s offshore frontier was reopened on Wednesday after nearly two decades. The government signed Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for offshore blocks during a ceremony witnessed by Federal Minister for Petroleum Ali Pervaiz Malik.

The awarded blocks are located in the Indus and Makran offshore basins adjoining Sindh and Balochistan waters. The Offshore Bid Round 2025 attracted bids covering approximately 54,600 square kilometers of Pakistan’s offshore area, resulting in the award of 23 offshore blocks.

Two offshore blocks previously executed on December 2, 2025, with Mari Energies Limited, Turkish Petroleum Overseas Company (TPOC), and Fatima Petroleum Company Limited. The remaining 21 PSAs were signed today, completing the contractual framework for the entire Offshore Bid Round 2025 portfolio.

Ali Pervaiz termed the signing a defining milestone in the government’s efforts to revitalize offshore exploration, attract investment, and reduce reliance on imported energy. He noted that the agreements reflect strong investor confidence in Pakistan’s offshore upstream potential, spanning 282,623 square kilometers where only 18 exploratory wells have been drilled since independence.

The successful completion of the offshore bid round reflects the government’s commitment to positioning Pakistan as a credible and competitive offshore destination through a transparent and investor-friendly regulatory framework. This includes the promulgation of the Offshore Petroleum Rules and the introduction of a Model Production Sharing Agreement incorporated within the bid package to enhance transparency, competitiveness, and investor confidence.

Mari Energies Limited emerged as the most active participant in the 23 offshore blocks, including 18 blocks as operator and five blocks as joint venture partner with other exploration and production companies. Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) have each been awarded eight exploration blocks each, including two blocks as operators.

Prime Global Energies Limited has also been awarded one block as operator. United Energy Pakistan Limited (UEP) and Orient Petroleum Incorporation (OPI), alongside other joint venture partners, participated in the signing ceremony.

Collectively, the awarded blocks represent an investment of approximately $82 million during Phase I of the initial three-year license period. Total investment is projected to increase to approximately $1 billion if exploration activities progress to Phase-II drilling operations.

Phase-I activities will involve extensive geological and geophysical studies, including seismic data acquisition, processing, and interpretation, aimed at better defining the hydrocarbon potential of Pakistan’s offshore basins. Subject to encouraging results, Phase II will involve the drilling of exploratory wells in prospective offshore areas.

In addition, the awardees have undertaken significant commitments towards social welfare and capacity-building initiatives in the coastal regions of Sindh and Balochistan.

In the event of commercial hydrocarbon discoveries, substantial follow-on investments amounting to hundreds of millions of dollars are anticipated for appraisal, field development, and production activities. These developments are expected to generate employment opportunities, facilitate technology transfer, and contribute meaningfully towards reducing Pakistan’s energy import bill.

The Petroleum Division said that it intends to engage leading international oil companies in the next phase of offshore exploration, with several global energy firms already evaluating available offshore data.