The government of Pakistan has awarded 11 onshore oil and gas exploration blocks to local exploration and production companies, securing minimum investment commitments of more than $31 million over the next three years as it seeks to boost domestic energy supplies.
The Petroleum Division signed Petroleum Concession Agreements and Exploration Licences for the blocks at a ceremony in Islamabad on Thursday, Petroleum Minister Ali Pervaiz Malik said. The blocks include eight in Balochistan, two in Sindh and one in Punjab.
Most of the winning bidders are state-backed firms. The successful joint ventures include Oil and Gas Development Company Ltd., Pakistan Petroleum Ltd., Mari Energies Ltd., Pakistan Oilfields Ltd. and Prime Global Energies.
Mari Energies will act as operator for six blocks. The company secured 100% working interest in five blocks — Padag, Chagai, Dalbandin, Merui and Merui West, and will operate the Ahmad Wal block with a 60% stake alongside OGDCL, which holds the remaining 40%.
OGDCL will operate three blocks, including Kalat North with full working interest. It will also lead two joint ventures: Naing Sharif, where it holds 70% alongside Prime Global Energies with 30%, and Khiu-II, where OGDCL holds 60% and Mari Energies 40%.
Pakistan Petroleum Ltd. emerged as the highest bidder for the Kalat South block and will operate it with a 40% working interest in partnership with OGDCL (30%) and Mari Energies (30%). Pakistan Oilfields Ltd. secured the Jherruk block with 100% working interest.
In addition to exploration spending, companies have committed more than 276 million rupees toward social welfare initiatives in the respective areas.
Officials said that if commercial hydrocarbon discoveries are made, substantially larger investments, potentially running into millions of dollars, would follow for field development and production, supporting Pakistan’s efforts to reduce reliance on energy imports.