Why Pakistan is reopening offshore energy exploration

Dubai: Pakistan has reopened its offshore oil and gas exploration sector after nearly two decades, with the government signing agreements for 23 offshore blocks in a move aimed at attracting foreign investment and reducing reliance on imported energy.

The Production Sharing Agreements (PSAs) and Exploration Licences (ELs) were signed under the Offshore Bid Round 2025 for blocks located in the Indus and Makran offshore basins near the coastal waters of Sindh and Balochistan. Federal Minister for Petroleum Ali Pervaiz Malik witnessed the signing ceremony.

According to the Ministry of Petroleum, the offshore bid round attracted bids covering nearly 54,600 square kilometres of Pakistan’s offshore territory, leading to the award of 23 blocks, Geo TV reported

The ministry said two offshore blocks including Offshore Deep-C and Offshore Deep-F, had already been awarded in December 2025 to a consortium comprising Mari Energies Limited, Turkish Petroleum Overseas Company and Fatima Petroleum Company Limited. With the signing of the remaining 21 agreements, the entire Offshore Bid Round 2025 portfolio has now been finalised.

Major milestone

Speaking at the event, Malik described the development as a major milestone for Pakistan’s energy sector, saying it reflected growing investor confidence in the country’s untapped offshore potential.

He noted that Pakistan’s offshore region spans around 282,623 square kilometres, yet only 18 exploratory wells have been drilled since independence.

The minister said the government had introduced investor-friendly reforms, including Offshore Petroleum Rules and a Model Production Sharing Agreement, to improve transparency and competitiveness in the sector.

Contracts

Among the participating firms, Mari Energies Limited emerged as the largest stakeholder, securing participation in all 23 blocks, operating 18 of them and joining five as a venture partner.

Oil and Gas Development Company Limited and Pakistan Petroleum Limited were each awarded eight blocks, while Prime Global Energies Limited secured one block as operator. Other participants included United Energy Pakistan Limited and Orient Petroleum Incorporation.

The Ministry of Petroleum said the awarded blocks represent an estimated investment of $82 million during the initial three-year exploration phase, which will involve geological studies, seismic surveys, data acquisition and interpretation.

Officials said total investments could increase to nearly $1 billion if the projects advance to the second phase involving offshore drilling operations.

The ministry added that companies involved in the project have also pledged social welfare and capacity-building initiatives for coastal communities in Sindh and Balochistan. In the event of commercial discoveries, authorities expect additional investments worth hundreds of millions of dollars to flow into Pakistan’s energy sector.