Islamabad, May 20, 2026(News Desk): Federal Minister for Petroleum Mr. Ali Pervaiz Malik today witnessed the signing ceremony of Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for offshore exploration blocks awarded under the Offshore Bid Round 2025, marking the formal reopening of Pakistan’s offshore exploration frontier after nearly two decades. The awarded blocks are located in the Indus and Makran offshore basins adjoining the territorial waters of Sindh and Balochistan. The Offshore Bid Round 2025 attracted bids covering approximately 54,600 square kilometres of Pakistan’s offshore area, resulting in the award of 23 offshore blocks. Two offshore blocks — Offshore Deep-C and Offshore Deep-F — had earlier been executed on December 2, 2025, with Mari Energies Limited, Turkish Petroleum Overseas Company (TPOC), and Fatima Petroleum Company Limited during a ceremony held at the Prime Minister’s Office. With the signing of the remaining 21 PSAs today, the contractual framework for the entire Offshore Bid Round 2025 portfolio has now been fully completed. Addressing the ceremony, the Federal Minister for Petroleum described the development as a defining milestone in the Government’s efforts to revitalise offshore exploration, attract domestic and foreign investment, and reduce reliance on imported energy. He stated that the agreements demonstrate growing investor confidence in Pakistan’s offshore upstream potential, which spans approximately 282,623 square kilometres, where only 18 exploratory wells have been drilled since independence.
The Minister highlighted that the successful completion of the offshore bid round reflects the Government’s commitment to establishing Pakistan as a credible and competitive offshore destination through a transparent and investor-friendly regulatory framework. He noted that the promulgation of Offshore Petroleum Rules and the introduction of a Model Production Sharing Agreement have enhanced transparency, competitiveness, and investor confidence. Mari Energies Limited emerged as the most active participant in the offshore bid round, securing participation in all 23 offshore blocks, including 18 blocks as Operator and five as a joint venture partner. Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) were each awarded eight exploration blocks, including two blocks each as Operator. Prime Global Energies Limited was awarded one block as Operator. United Energy Pakistan Limited (UEP) and Orient Petroleum Incorporation (OPI), along with other joint venture partners, also participated in the signing ceremony. Collectively, the awarded blocks represent an estimated investment of approximately USD 82 million during Phase-I of the initial three-year licence period. Total projected investment could rise to nearly USD 1 billion if exploration activities advance to Phase-II drilling operations. Phase-I activities will include extensive geological and geophysical studies, seismic data acquisition, processing, and interpretation to better assess the hydrocarbon potential of Pakistan’s offshore basins. Subject to encouraging results, Phase-II will involve exploratory drilling in prospective offshore areas. The awardees have also committed to social welfare and capacity-building initiatives in the coastal regions of Sindh and Balochistan. In the event of commercial hydrocarbon discoveries, substantial follow-on investments are expected for appraisal, field development, and production activities, generating employment opportunities, promoting technology transfer, and contributing to the reduction of Pakistan’s energy import bill.
The Petroleum Division plans to engage leading international oil companies in the next phase of offshore exploration, with several global energy firms already evaluating available offshore data. The Federal Minister reaffirmed the Government’s commitment to facilitating exploration activities by ensuring a stable, transparent, and investor-friendly environment for the sustainable development of Pakistan’s indigenous energy resources.