ISLAMABAD — In a historic shift for the national energy sector, the federal government has officially reopened its maritime frontiers by awarding two dozen offshore exploration blocks after a nearly twenty-year hiatus. Petroleum Minister Ali Pervaiz Malik witnessed the formal signing of production sharing agreements and exploration licenses, locking in an initial investment of $82 million for the first phase of a three-year period. Spanning across the resource-rich Indus and Makran offshore basins adjacent to Sindh and Balochistan, the massive blocks cover approximately 54,600 square kilometers of maritime territory. This aggressive exploration push aims to revitalize the country’s upstream potential, attract high-quality domestic and foreign capital, and systematically curb the ballooning national energy import bill.
Pakistan has restarted offshore oil and gas exploration activities after nearly two decades, with the government signing a series of production-sharing agreements and exploration licenses under the Offshore Bid Round 2025, officials said on Wednesday.
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Key Highlights
- The government formally reopened its maritime oil frontier after a twenty-year gap.
- Initial exploration licensing secured an immediate cash injection of $82 million.
- Total investment figures are projected to touch $1 billion during the second phase.
- Exploration giants secured blocks across the vast Indus and Makran offshore basins.
- Mari Energies emerged as the dominant player by capturing 23 total blocks.
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The successful conclusion of the Offshore Bid Round 2025 completes the overarching contractual framework for the country’s vast and largely untapped marine territory. Speaking at the signing ceremony, Minister Ali Pervaiz Malik highlighted that out of an expansive frontier covering over 282,000 square kilometers, only 18 exploratory wells had been drilled since independence. He noted that the new agreements demonstrate renewed investor trust in the state’s transparent and business-friendly regulatory framework. Major public sector corporations, including the Oil and Gas Development Company (OGDCL) and Pakistan Petroleum Limited (PPL), secured eight blocks each, while private entities like Prime Global Energies and United Energy Pakistan also locked in joint ventures.
Beyond the immediate macroeconomic benefits, the exploration contracts carry binding corporate social responsibility mandates to actively uplift local coastal communities in Sindh and Balochistan. In the event of commercial hydrocarbon discoveries, massive follow-on investments will flow directly into local appraisal, deepwater field development, and production infrastructure. Officials from the Petroleum Division confirmed that they are already negotiating with top-tier international oil firms to review available seismic data for subsequent bidding phases. By maintaining a stable and transparent operating environment, the state hopes to transform the country into a highly competitive offshore destination capable of securing true indigenous energy security.
