Pakistan formally reopened its offshore oil and gas exploration sector on Wednesday after nearly two decades, signing Production Sharing Agreements and Exploration Licenses for offshore blocks awarded under the Offshore Bid Round 2025.
Federal Minister for Petroleum Ali Pervaiz Malik witnessed the signing of agreements covering 21 offshore blocks, completing the contractual framework for all 23 blocks awarded under the bid round.
Mari Energies was the most active participant in the bid round, securing interests in 23 blocks, including 18 as operator. Oil and Gas Development Company Limited and Pakistan Petroleum Limited were each awarded eight blocks, while Prime Global Energies secured one block as operator.
Other participants included United Energy Pakistan and Orient Petroleum Incorporation alongside various joint venture partners.
The development marks one of Pakistan’s most significant offshore energy initiatives in recent years.
The blocks are located in the Indus and Makran offshore basins along the coasts of Sindh and Balochistan and cover an area that attracted bids for approximately 54,600 square kilometers of offshore territory.
Speaking at the ceremony, the petroleum minister described the signing as a milestone in efforts to revive offshore exploration and attract both local and foreign investment. He noted that Pakistan’s offshore frontier spans 282,623 square kilometers, yet only 18 exploratory wells have been drilled since independence.
According to the Petroleum Division, the awarded blocks represent an initial investment commitment of approximately US$82 million during the first three year exploration phase.
The investment could rise to around US$1 billion if exploration progresses to drilling activities under Phase II. The initial phase will focus on seismic surveys, geological studies and data interpretation to identify potential hydrocarbon reserves before exploratory wells are drilled.
The government expects successful discoveries to trigger substantial additional investment in appraisal, field development and production infrastructure.
The latest offshore push follows regulatory reforms aimed at improving investor confidence, including the introduction of new Offshore Petroleum Rules and a revised Model Production Sharing Agreement.