Pakistan has formally reopened its offshore exploration frontier after nearly twenty years of dormancy, signaling a renewed push to tap into domestic hydrocarbon resources. The government finalized Production Sharing Agreements (PSAs) and Exploration Licenses (ELs) for 23 offshore blocks awarded under the Offshore Bid Round 2025, marking the completion of the country’s largest maritime licensing effort in recent history.
Federal Minister for Petroleum Ali Pervaiz Malik witnessed the signing ceremony in Islamabad, which covered blocks located in the Indus and Makran offshore basins adjacent to the territorial waters of Sindh and Balochistan. The move aims to reduce Pakistan’s crippling dependence on imported energy by attracting both foreign and domestic capital into a frontier that has seen minimal activity since independence.
Massive Area and Investment Potential
According to the Petroleum Division, the bid round attracted proposals covering approximately 54,600 square kilometres of offshore territory. The initial three-year licence period is expected to generate an estimated investment of $82 million. However, the government projects that total investment could surge to nearly $1 billion if exploration activities successfully progress to the second-phase drilling operations.
The contractual framework for the entire portfolio was completed after the remaining 21 agreements were signed. Two blocks, Offshore Deep-C and Offshore Deep-F, had already been executed in December 2025 with a consortium including Mari Energies Limited, Turkish Petroleum Overseas Company, and Fatima Petroleum Company Limited.
Corporate Participation and Commitments
Mari Energies emerged as the dominant player in the round, securing participation in all 23 offshore blocks. The company will serve as the operator for 18 blocks and act as a joint venture partner in the remaining five. Other major state-owned entities also secured significant positions:
- Oil and Gas Development Company Limited (OGDCL) was awarded eight blocks, operating two.
- Pakistan Petroleum Limited (PPL) secured eight blocks, also operating two.
- Prime Global Energies Limited won one block as operator.
- United Energy Pakistan Limited and Orient Petroleum Incorporation joined as joint venture partners.
The minister stated that the agreements reflect strong investor confidence in Pakistan’s offshore upstream potential, which spans roughly 282,623 square kilometres. Historically, only 18 exploratory wells have been drilled in this vast area since the country’s independence.
Exploration Phases and Regulatory Framework
The revival is underpinned by a new regulatory framework designed to improve transparency and competitiveness. This includes the promulgation of Offshore Petroleum Rules and the introduction of a Model Production Sharing Agreement. The government hopes these investor-friendly regulations will establish Pakistan as a competitive offshore destination.
Exploration activities will proceed in distinct phases. The first phase will focus on geological and geophysical studies, seismic data acquisition, processing, and interpretation to assess the hydrocarbon potential of the deep-water basins. Subject to encouraging results, companies will move to the second phase, which involves exploratory drilling in the most prospective areas.
The award-winning companies have also committed to social welfare and capacity-building initiatives in the coastal communities of Sindh and Balochistan. The Petroleum Division noted that substantial follow-on investments worth hundreds of millions of dollars are anticipated in the event of commercial hydrocarbon discoveries, potentially transforming the country’s energy landscape.
