Pakistan officially reopened its offshore energy sector on Wednesday after almost two decades, signing Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for multiple offshore exploration blocks.
Federal Minister for Petroleum Ali Pervaiz Malik attended the signing ceremony for the offshore blocks awarded under the Offshore Bid Round 2025, according to an official statement.
The awarded blocks are situated in the Indus and Makran offshore basins near the coastal waters of Sindh and Balochistan. The bid round drew interest for around 54,600 square kilometres of offshore territory, leading to the allocation of 23 offshore blocks.
Two blocks — Offshore Deep-C and Offshore Deep-F — had already been awarded earlier on December 2, 2025, to Mari Energies Limited, Turkish Petroleum Overseas Company (TPOC), and Fatima Petroleum Company Limited during a ceremony at the Prime Minister’s Office.
“With the signing of the remaining 21 PSAs today, the contractual framework for the entire Offshore Bid Round 2025 portfolio now stands fully completed,” the statement said.
Addressing the ceremony, Ali Pervaiz Malik described the development as a major step toward reviving offshore exploration, encouraging local and foreign investment, and lowering dependence on imported energy.
He said the agreements demonstrate growing investor confidence in Pakistan’s offshore energy potential, which spans 282,623 square kilometres, despite only 18 exploratory wells being drilled since independence.
The minister also said the successful bid round highlighted the government’s resolve to establish Pakistan as a reliable and competitive offshore investment destination through transparent and investor-friendly policies.
These measures include the introduction of Offshore Petroleum Rules and a Model Production Sharing Agreement aimed at improving transparency, competitiveness, and investor confidence.
Mari Energies Limited secured the largest share of the awarded blocks, operating 18 blocks and participating in five more through joint ventures. Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) each received eight blocks, including two as operators.
Prime Global Energies Limited was awarded one block as operator, while United Energy Pakistan Limited (UEP) and Orient Petroleum Incorporation (OPI) also took part alongside other joint venture partners.
The statement noted that the awarded blocks are expected to attract nearly $82 million in investment during the first three-year exploration phase. If projects advance to Phase-II drilling operations, total investment could rise to nearly $1 billion.
Phase-I will focus on geological and geophysical surveys, including seismic data collection, processing, and interpretation, to assess hydrocarbon reserves in offshore basins. If results prove promising, exploratory drilling will begin in the second phase.
The companies have also pledged support for social welfare and capacity-building programmes in Sindh and Balochistan’s coastal areas.
If commercially viable oil or gas reserves are discovered, further investments worth hundreds of millions of dollars are expected for development and production activities. Officials believe this could create jobs, promote technology transfer, and significantly cut Pakistan’s energy import costs.
The Petroleum Division added that it plans to engage major international oil companies in the next stage of offshore exploration, with several global firms already reviewing available offshore data.
