Pakistan has formally revived its offshore oil and gas exploration sector after nearly two decades, signing Production Sharing Agreements and Exploration Licenses for offshore blocks awarded under the Offshore Bid Round 2025 in a major step aimed at boosting domestic energy output and cutting reliance on imported fuels.
Federal Minister for Petroleum Ali Pervaiz Malik witnessed the signing ceremony covering 21 offshore blocks, completing agreements for all 23 blocks awarded in the latest bidding round. The blocks lie across the Indus and Makran offshore basins along the coasts of Sindh and Balochistan, spanning roughly 54,600 square kilometers of maritime territory.
Two blocks—Deep-C and Deep-F—had already been awarded earlier in December 2025 to a consortium of Mari Energies Limited, Turkish Petroleum Overseas Company, and Fatima Petroleum Company Limited.
Officials said the move marks one of the country’s most significant offshore energy revival initiatives in recent years, aimed at unlocking Pakistan’s largely untapped maritime hydrocarbon potential. The minister noted that despite an offshore area of around 282,623 square kilometers, only 18 exploratory wells have been drilled since independence.
Under the bidding results, Mari Energies emerged as the most active participant, securing interests in 23 blocks and operating 18 of them. Oil and Gas Development Company Limited and Pakistan Petroleum Limited each won rights in eight blocks, while Prime Global Energies secured one operated block. Other participants included United Energy Pakistan and Orient Petroleum alongside multiple joint ventures.
The Petroleum Division said the initial exploration phase will involve an estimated US$82 million investment over three years, focused on seismic surveys, geological studies, and data analysis. If exploration advances to drilling, total investment could rise to nearly US$1 billion.
Authorities expect any commercial discoveries to significantly boost energy supply, attract further foreign investment, create jobs, and help ease Pakistan’s growing import bill. Officials added that recent regulatory reforms—including updated Offshore Petroleum Rules and a revised Model Production Sharing Agreement—are designed to improve investor confidence and encourage future bidding rounds.
