Mari Energies Leads New Offshore Bidding Round
The government has awarded 23 new offshore exploration blocks to three public sector companies. Mari Energies secured the largest share of these provisional awards. The government assigned the blocks for an initial three-year period. The companies committed about $80 million for early exploration work. Officials said the bidding round offered 40 offshore blocks in total. Mari Energies, based in Islamabad, dominated the process.
Mari Energies said it secured operatorship in 18 offshore blocks. It also won partnership roles in another five blocks. The company holds full ownership and operatorship in 10 blocks. It also controls majority stakes with operatorship in eight additional blocks. The company operates as a joint venture of Fauji Foundation and the federal government.
PPL and OGDCL Receive Multiple Blocks
Pakistan Petroleum Limited secured six blocks as operator. It also gained partnership roles in two more blocks. PPL remains the country’s oldest exploration company. Oil and Gas Development Company Limited secured two blocks as operator. OGDCL also won partnership roles in six other offshore blocks. Both companies play major roles in Pakistan’s energy sector.
Prime Global Energies, a private firm, obtained one block as operator. It holds 31 percent shares in that block. Mari Energies, PPL and OGDCL each hold 23 percent stakes in the same block.
Awards Remain Subject to Final Agreements
Officials said the awards remain provisional until legal steps conclude. Companies must sign production sharing agreements before exploration begins. They must also obtain exploration licences from the authorities. Joint operating agreements must follow among the participating firms.
The government received 23 bids for the 40 offshore blocks on October 31. The awarded blocks cover an area of about 53,510 square kilometres. Officials said the Petroleum Division noted rising international interest in offshore Pakistan. Several foreign firms already participate in joint ventures with local companies.
Offshore Sector Revives After Long Gap
Leading global firms previously attempted exploration in Pakistan’s offshore basins. Shell and ExxonMobil conducted earlier drilling campaigns without success. The most recent attempt occurred five years ago at Kekra-1. Despite strong geological data, that well also failed to find hydrocarbons.
The Petroleum Division prepared a model production sharing agreement before launching the process. The government also promulgated Offshore Petroleum Rules to strengthen the regulatory framework. These steps aimed to boost transparency and investor confidence. The Offshore Bid Round 2025 began in January after an 18-year gap.
A recent basin study by DeGolyer and MacNaughton indicated strong offshore potential. The findings encouraged the government to accelerate new exploration plans. Officials said companies committed 4,427 work units during Phase-1. They valued the planned spending at about $80 million. Exploration drilling could raise investment to as much as $1 billion.
