Pakistan has officially reopened its offshore oil and gas exploration sector after nearly twenty years. The government has signed Production Sharing Agreements and Exploration Licences under the Offshore Bid Round 2025.
The move marks a major step toward strengthening domestic energy resources. It also aims to reduce reliance on costly imported fuel.
Offshore Bid Round 2025 Attracts Major Investment
Federal Petroleum Minister Ali Pervaiz Malik attended the signing ceremony of the Production Sharing Agreements and Exploration Licences. The agreements were awarded under the Offshore Bid Round 2025.
According to official details, bids covered nearly 54,600 square kilometres of offshore territory. As a result, 23 offshore blocks were awarded in total.
Two blocks, Offshore Deep-C and Offshore Deep-F, were earlier finalised on December 2, 2025. These were signed with Mari Energies Limited, Turkish Petroleum Overseas Company, and Fatima Petroleum Company Limited.
“With the signing of the remaining 21 PSAs today, the contractual framework for the entire Offshore Bid Round 2025 portfolio now stands fully completed,” the statement confirmed.
Strategic Offshore Basins and Energy Potential
The awarded blocks are located in the Indus and Makran offshore basins. These areas lie within the maritime zones of Sindh and Balochistan.
Officials highlighted that Pakistan’s offshore region spans approximately 282,623 square kilometres. However, only 18 exploratory wells have been drilled since independence.
This limited exploration highlights significant untapped potential. Therefore, authorities believe the renewed activity could transform the energy sector.
Investor Confidence and Regulatory Reforms
During the ceremony, the petroleum minister described the signing as a key milestone. He said the agreements reflect growing investor confidence in Pakistan’s offshore energy sector.
The government has introduced updated Offshore Petroleum Rules. It has also included a Model Production Sharing Agreement within the bid structure.
These steps aim to improve transparency and attract long-term investment. They also support a more competitive and stable regulatory environment.
Major Energy Companies Join Offshore Expansion
Several major companies have secured exploration rights. Mari Energies Limited emerged as the most active participant.
It will operate 18 blocks and partner in five additional blocks. Meanwhile, Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) each received eight blocks.
Prime Global Energies Limited was awarded one block as an operator. United Energy Pakistan Limited and Orient Petroleum Incorporation also participated in joint ventures.
Investment Outlook and Future Phases
The initial phase involves an estimated investment of $82 million. This covers a three-year license period focused on exploration activities.
If results prove promising, total investment could rise to around $1 billion. This would support Phase-II drilling operations.
Phase-I will include geological and geophysical studies. These will involve seismic data collection, processing, and interpretation.
Phase-II will focus on exploratory drilling in promising offshore zones. This stage will determine commercial viability.
Long-Term Energy and Economic Impact
Officials expect major long-term benefits from offshore development. These include job creation, technology transfer, and improved coastal development.
The agreements also include commitments to social welfare projects in Sindh and Balochistan.
If commercial discoveries are made, further investments could reach hundreds of millions of dollars. This would support production, appraisal, and field development activities.
Ultimately, the government aims to reduce Pakistan’s energy import bill. It also plans to attract leading international energy companies in future exploration rounds.
