After an 18-year pause, Pakistan has reignited its offshore oil and gas exploration drive, awarding 23 exploration blocks to four consortia led by domestic companies. The Ministry of Energy confirmed the announcement on Friday, marking a major milestone in revitalising the country’s energy sector.
Diverse Participation and Foreign Partnerships
The Offshore Bid Round 2025 offered 40 offshore blocks spanning roughly 53,500 square kilometres across the Indus and Makran basins. Out of these, 23 were awarded to consortia led by Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Petroleum, and Prime Energy, a private entity backed by Hub Power Company (Hubco).
Several international partners joined the venture. Turkiye’s state-owned Turkish Petroleum Corporation (TPAO) secured a 25% operational stake in one of the awarded blocks through a joint bidding agreement with PPL. Other consortium members include United Energy Group (Hong Kong), Orient Petroleum, and Fatima Petroleum of the Fatima Group.
Investment Commitments and Exploration Plans
The four winning consortia have collectively pledged $80 million in initial exploration spending during the first three years. If drilling advances as planned, the total investment could range between $750 million and $1 billion, according to the Ministry of Energy.
The first phase will involve comprehensive geophysical and geological (G&G) studies, including seismic data collection and interpretation to map potential hydrocarbon reserves. Phase II will focus on exploratory drilling in the most promising offshore zones.
New Confidence from Global Studies
A recent study by US-based petroleum consultancy DeGolyer and MacNaughton (D&M) revealed significant untapped hydrocarbon potential in Pakistan’s offshore basins. Building on this assessment, the government launched the 2025 bidding round to attract global exploration firms and restore foreign investor confidence in the sector.
Untapped Offshore Potential
Pakistan’s offshore zone covers nearly 300,000 square kilometres, bordered by energy-rich nations such as Oman, the UAE, and Iran. Despite this vast area, only 18 wells have been drilled since independence, too few to determine the full energy potential.
Reducing Energy Import Dependence
Currently, Pakistan produces around 60,000 barrels of oil per day, with proven reserves of 353 million barrels, according to the US Energy Information Administration (EIA). The country spends over $12 billion annually on oil imports, primarily sourced from Saudi Arabia, the UAE, Qatar, Kuwait, China, and, recently, Russia.
The government hopes that successful offshore discoveries will help reduce import dependence, strengthen energy security, and attract long-term foreign investment in exploration and production.
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