Govt reopens offshore oil frontier

ISLAMABAD: For the first time in nearly 20 years, the government on Wednesday awarded two dozen offshore blocks for exploration, attracting an initial investment of $82 million during the first phase of a three-year licensing period.

According to an official statement from the petroleum ministry, the total investment is projected to reach $1 billion if exploration activities progress to the second phase.

Petroleum Minister Ali Pervaiz Malik witnessed the signing of production sharing agreements (PSAs) and exploration licences (ELs) for blocks awarded in the Offshore Bid Round 2025, marking the formal reopening of the country’s maritime frontier after nearly two decades.

The awarded blocks are located in the Indus and Makran offshore basins, adjoining the territorial waters of Sindh and Balochistan. The round attracted bids covering approximately 54,600 square kilometres of the country’s offshore area, resulting in the award of 23 blocks, according to an official press release.

23 blocks awarded after 20-year gap, attracting $82m initial investment in Indus and Makran basins

Two offshore blocks awarded under the same bid round, Offshore Deep-C and Offshore Deep-F, had earlier been executed on Dec 2, with Mari Energies, Turkish Petroleum Overseas Company (TPOC), and Fatima Petroleum Company during a ceremony at the Prime Minister’s Office.

With the signing of the remaining 21 PSAs, the contractual framework for the entire offshore bid round portfolio is now complete.

Speaking at the ceremony, Mr Pervaiz termed the signing a “defining milestone” in the government’s efforts to revitalise offshore exploration, attract both foreign and domestic investment, and reduce reliance on imported energy.

He added that the agreements reflect strong investor confidence in the country’s offshore upstream potential, a frontier spanning 282,623 square kilometres, where only 18 exploratory wells have been drilled since independence.

He further said the successful completion of the offshore bid round reflects the government’s commitment to making Pakistan a “credible and competitive offshore destination” through a transparent and investor-friendly regulatory framework.

The minister reaffirmed the government’s commitment to facilitating exploration activities by maintaining a stable, transparent, and investor-friendly environment that supports the sustainable development of the country’s indigenous energy resources.

Most active participant

Mari Energies emerged as the most active participant in the 23 offshore blocks, including 18 as operator and five as a joint venture partner with other exploration and production companies.

The Oil and Gas Development Company (OGDCL) and the Pakistan Petroleum Ltd (PPL) were awarded eight exploration blocks each, including two as operators.

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

Social welfare

The awardees have committed themselves to undertaking initiatives to improve the quality of life of communities 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 the nation’s energy import bill.

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

Published in Dawn, May 21st, 2026