Key Points
- Pakistan has reopened offshore exploration after nearly 20 years through the Offshore Bid Round 2025
- The government awarded 23 offshore blocks with projected investments potentially reaching USD 1 billion
- Exploration activities will focus on the Indus and Makran offshore basins adjoining Sindh and Balochistan
ISLAMABAD: Pakistan on Wednesday formally reopened offshore oil and gas exploration after nearly two decades, signing Production Sharing Agreements and Exploration Licences for offshore blocks with 23 companies.
Under the Offshore Bid Round 2025, Islamabad seeks to attract international investment and strengthen domestic energy production.
The agreements complete the award process for 23 offshore exploration blocks located in the Indus and Makran basins adjoining the territorial waters of Sindh and Balochistan, covering around 54,600 square kilometres.
Two offshore blocks, Offshore Deep-C and Offshore Deep-F, had earlier been awarded in December 2025 to a consortium led by Mari Energies Limited, Turkish Petroleum Overseas Company and Fatima Petroleum Company Limited.
Federal Minister for Petroleum Ali Pervaiz Malik described the agreements as a defining milestone in Pakistan’s efforts to revitalise stalled offshore exploration.
It would also position the country as a competitive destination for global energy investment, he added.
Pakistan’s offshore frontier spans nearly 282,623 square kilometres, yet only 18 exploratory wells have been drilled since independence, he said. The minister highlighted the largely untapped potential of the country’s deep-sea basins.
The government had introduced updated Offshore Petroleum Rules and a revised Model Production Sharing Agreement designed to create a transparent and investor-friendly regulatory environment.
Mari Energies Limited emerged as the largest participant in the offshore round, securing interests in all 23 blocks, including 18 as operator.
Oil and Gas Development Company Limited and Pakistan Petroleum Limited were each awarded eight blocks, including two as operators.
Other participating companies included Prime Global Energies Limited, United Energy Pakistan Limited and Orient Petroleum Incorporation.
The offshore awards represent an estimated investment commitment of $82 million during the initial three-year exploration phase, with total investments projected to rise to nearly USD 1 billion if projects advance to drilling operations.
Phase-I activities will include geological and geophysical studies, seismic data acquisition, processing and interpretation to assess hydrocarbon prospects in Pakistan’s offshore basins.
The government said commercial discoveries could trigger large-scale follow-on investments in appraisal, field development and, ultimately, oil and gas production.
The projects would potentially generate employment opportunities, technology transfer and lower energy import costs for Pakistan.
