Govt awards 23 offshore blocks in first bid round in nearly two decades

ISLAMABAD: The government has awarded 23 offshore exploration blocks for the first time in nearly 20 years, opening a new phase of activity in Pakistan’s maritime energy frontier and drawing an initial investment of $82 million during the first stage of a three-year licensing period.

According to an official statement issued by the petroleum ministry, the total investment linked to the offshore programme could rise to $1 billion if exploration work advances to the second phase.

Petroleum Minister Ali Pervaiz Malik witnessed the signing of production sharing agreements and exploration licences for blocks awarded under Offshore Bid Round 2025. The ceremony formally marked the reopening of offshore exploration after a gap of almost two decades.

The blocks awarded under the round are situated in the Indus and Makran offshore basins, adjacent to the territorial waters of Sindh and Balochistan. An official press release said bids were received for around 54,600 square kilometres of offshore area, leading to the award of 23 blocks.

Two of those blocks — Offshore Deep-C and Offshore Deep-F — had already been executed on Dec 2. Those agreements involved Mari Energies, Turkish Petroleum Overseas Company and Fatima Petroleum Company, and were signed during a ceremony held at the Prime Minister’s Office. With the signing of the remaining 21 production sharing agreements, the contractual structure for the full offshore bid round has now been completed.

Minister highlights offshore potential

Addressing the ceremony, Mr Malik described the development as a major step in the government’s effort to revive offshore exploration, bring in local and foreign investment, and lower dependence on imported energy.

He said the agreements showed investor confidence in Pakistan’s offshore upstream potential, noting that the country’s offshore frontier covers 282,623 square kilometres, while only 18 exploratory wells have been drilled there since independence.

The minister said the completion of the offshore bid round reflected the government’s intention to position Pakistan as a reliable and competitive offshore destination through what he called a transparent and investor-friendly regulatory framework.

He also reiterated the government’s commitment to supporting exploration work through a stable and transparent policy environment aimed at the sustainable development of domestic energy resources.

In his remarks, Mr Malik called the signing a defining milestone in the government’s push to revitalise offshore exploration. He also said the country aimed to become a credible and competitive offshore destination.

Companies and future plans

Mari Energies was the most active participant in the offshore round, securing involvement in all 23 blocks. It will serve as operator in 18 of them and as a joint venture partner in five others with other exploration and production firms.

The Oil and Gas Development Company and Pakistan Petroleum Ltd were each awarded eight exploration blocks, including two each as operators. Prime Global Energies received one block as operator.

United Energy Pakistan Limited and Orient Petroleum Incorporation, along with other joint venture partners, also took part in the signing ceremony.

Community commitments and next phase

According to the official statement, the companies awarded the blocks have also committed to social welfare initiatives intended to improve living conditions in coastal communities of Sindh and Balochistan.

The statement added that if commercially viable hydrocarbon discoveries are made, the next stages could bring follow-on investment worth hundreds of millions of dollars for appraisal, field development and production. It said such activity is expected to create jobs, support technology transfer and help reduce Pakistan’s energy import bill.

The Petroleum Division plans to engage major international oil companies in the next phase of offshore exploration. The official statement said several global energy firms are already reviewing the available offshore data.