Pakistan has successfully signed agreements for 23 offshore oil and gas exploration blocks, committing $82 million in Phase I investment after nearly two decades of inactivity.
Federal Petroleum Minister Ali Pervaiz Malik witnessed the signing ceremony for Production Sharing Agreements and Exploration Licences for blocks awarded under the Offshore Bid Round 2025.
The awarded blocks lie within the Indus and Makran offshore basins, adjoining the territorial waters of Sindh and Balochistan, covering approximately 54,600 square kilometres of Pakistan’s offshore area.
The agreements
Two of the 23 blocks, named Offshore Deep-C and Offshore Deep-F, had earlier been signed on December 2, 2025, with Mari Energies, Turkish Petroleum Overseas Company, and Fatima Petroleum Company.
The signing of the remaining 21 Production Sharing Agreements means the full contractual framework for the Offshore Bid Round 2025 portfolio is now formally and completely in place.
Malik described the signing as a defining milestone in Pakistan’s efforts to revitalise offshore exploration, attract foreign and domestic investment, and reduce reliance on costly imported energy.
Investment commitments
Phase I investment across all awarded blocks is committed at approximately $82 million, covering the initial three-year licence period of extensive geological and geophysical studies and seismic work.
If exploration activities progress to Phase II drilling operations, total investment is projected to increase significantly, reaching approximately $1 billion across Pakistan’s newly reopened offshore frontier.
In the event of commercial hydrocarbon discoveries, further investments amounting to hundreds of millions of dollars are expected for appraisal, field development, and full production activities.
Key participants
Mari Energies Limited emerged as the most active participant, holding stakes in 18 blocks as operator and five blocks as a joint venture partner with other exploration companies.
Oil and Gas Development Company and Pakistan Petroleum Limited were each awarded eight exploration blocks, including 2 blocks each where they serve as operating companies.
Prime Global Energies Limited received one block, while United Energy Pakistan Limited and Orient Petroleum Incorporation also participated in the ceremony alongside other joint venture partners.
Regulatory framework
Pakistan’s offshore frontier spans 282,623 square kilometres, yet only 18 exploratory wells have been drilled in the entire area since the country gained independence in 1947.
The government introduced the Offshore Petroleum Rules and a Model Production Sharing Agreement to enhance transparency, competitiveness, and investor confidence in Pakistan’s offshore regulatory environment.
The Petroleum Division has stated it intends to engage leading international oil companies in the next phase, with several global energy firms already evaluating available offshore data.
Beyond energy production, the block awardees have undertaken significant commitments towards social welfare and capacity-building initiatives specifically targeting coastal communities in Sindh and Balochistan provinces.
Successful commercial discoveries are expected to generate employment opportunities, facilitate technology transfer, and contribute meaningfully towards reducing Pakistan’s substantial annual energy import bill over time.
